The issue is not with the app itself, but with the software that runs it. A wide range of banks continue to use old structures that were established decades ago. While they appear modern on the surface, they are trying to keep up. Thankfully, things are changing. With modern core banking technologies operating silently in the background, banks can now provide the seamless digital experience that clients expect.
Why Banking Still Feels Stuck in the Past
Despite the digital shine, many banks continue to operate on legacy infrastructure, which was constructed in the 1980s or 1990s. These systems are not suitable for today’s fast-paced, app-driven environment.
That is why simple procedures, such as registering a new account or updating your personal information, can take longer than necessary. Adding new features is challenging with legacy systems because they are stiff, expensive to maintain, and intricately integrated.
Consider trying to renovate an old house while leaving the plumbing and electrical wiring unchanged. You can give it a new coat of paint, but the fundamental framework will keep you back. That is basically what is happening in the banking sector.
How Modern Core Platforms Quietly Improve Your Banking Experience
You might not notice them but contemporary core platforms have a direct influence on your daily interactions with your bank.
Firstly, they enable banks to provide speedier services, such as same-day loan approvals, real-time payments, and instant transfers. This is possible because the backend can manage high-speed processing and decision-making. The need to wait three days for a simple transfer to clear will be eliminated.
Second, they enable banks to roll out new products faster. Whether it’s a savings tool, budgeting software, or a new account type, contemporary cores allow banks to release upgrades in weeks. That’s why some digital-first banks appear to be continuously introducing new products, whereas traditional banks seem to be stuck.
Third, contemporary systems support personalization. Banks may now customize experiences based on your behavior, tastes, or life stage rather than offering one-size-fits-all services. This means that a backend that can manage real-time data will power more intelligent notifications, useful offers, and user-friendly interfaces.
Last but not least, improved security and dependability are frequently disregarded advantages. Resilience is a feature of cloud-native platforms, translating into fewer outages, quicker bug patches, and quicker reactions to security concerns.
Behind the scenes, this contributes to a far more seamless and contemporary banking experience.
What is the Process for Acquiring a Core Banking Application?
There is no one-size-fits-all solution because this can change based on the organization’s structure and preferences. Numerous situations could occur, including:
The institution distributes an RFP, encouraging contractors to submit offers for review. Demos and proof-of-concepts follow qualified leads until a vendor is picked.
Another sourcing strategy involves the procurement team directly contacting possible vendors for solutions. They request demos and evaluate options until they locate the appropriate software.
Other methods exist, but they typically include demos and proof-of-concept sign-offs before ultimate selection.
Why Most People Don’t Realize This Is Happening
The most remarkable element is that most people are unaware that this shift is taking place, which is intentional.
Unlike a spectacular app makeover or a fresh marketing campaign, essential platform improvements are low-key, technical, and deeply internal. Banks rarely disclose core enhancements, but you’ll notice faster, smoother experiences when the changes are silently implemented.
In many circumstances, the improvement occurs gradually. Maybe one day your bank will allow you to freeze your card instantly or start a new account in minutes. These innovations become part of the standard banking experience. However, they would not be possible without a more adaptable and modern backend.
So What’s Next for Your Bank?
The good news is that more banks are adopting the change. Core modernization used to be risky and expensive, but with core banking as a service, it’s becoming easier, safer, and more adaptable.
Banks that embrace change will be able to create better products, serve clients more quickly, and compete with fintech challengers. Those who do not risk falling behind will continue to provide outdated experiences in an environment that is evolving rapidly.
Customers may expect their banking experience to improve much further. You may anticipate new digital features that genuinely make life easier, faster services, and greater customization.
Conclusion
If your bank seems antiquated, it’s probably because of legacy core systems. These days, banks may develop without interfering with your everyday life thanks to modern core platforms. When your bank offers new features, give thanks to the silent technology that powers them.
