Core banking might not be the sexiest of subjects, but if you don't get it right, your bank will suffer financially and lose its edge to the truly digital competitors coming your way. But how do you strengthen your core when you're stuck with a Frankenstein legacy system? In episode 225 of FinTech Insider Insights, we break down what you need to do.
These days, few banks replace their entire core banking system at once. Rather, they start a new bank, with new people, and new systems, and then migrate existing customers over. "That's a very easy way to start, with a minimum viable product and then build from there," Ben says, offering Pepper and Equitable Bank as examples.
I think we'll observe that all core banking replacements will be build and migrate over time…by line of business, by geography, by horizontal, that seems to be something where you can really reduce the risks, and also massively speed up the time to value.