In an era where digitalisation and new technologies are radically reshaping the banking landscape, upgrading core banking systems is no longer a purely technological project but a strategic choice. This was the central message of the speech by Ram Devanarayanan, Head of Business Consulting, Finacle Europe, Infosys Finacle, at the 13th Banking, Payments and Fintech Forum and Expo, presented by Logicom.
Titled 'Reimagining Core Banking: From System Replacement to Strategic Transformation,' the talk highlighted why the traditional logic of replacing legacy systems is no longer sufficient for the needs of modern banks. As Devanarayanan underlined, the gap between the capabilities of legacy systems and the digital expectations of the market is widening, creating pressures on speed, agility and customer experience.
According to the expert, banks are being called upon to redesign their core so that they can innovate without disrupting their existing operations. The transition to next-generation core banking is not just about technology, but about creating a framework that enables faster product development, real-time transaction processing and a higher degree of personalisation for the customer.
Presenting international examples of banks that have already undertaken this transformation, Devanarayanan highlighted the measurable business benefits: significant reduction in operating costs, acceleration of time-to-market for new products, drastic reduction of manual processes and improvement of the customer experience in real time.
Particular emphasis was placed on the fact that the strategic transformation of core banking systems acts as a catalyst for overall change, allowing banks to respond both to competition from fintech and neobanks and to increasing regulatory and operational requirements.
As he characteristically stated, “core banking is no longer simply the 'engine' of the bank, but the platform on which its future is built.” In an environment where adaptability is a critical factor for survival, the strategic re-approach to the core of banking systems emerges as a key prerequisite for sustainable growth, the expert concluded.
(Source: InBusinessNews)
