The future of banking requires composable solutions
Banks and credit unions want to create new business models and customer experiences at a speed and scale that was previously impossible with legacy infrastructure. To this end, financial institutions are increasingly looking towards 'building-block' style solutions that are interchangeable based on market needs.
Digital banking transformation is being powered by emerging technologies such as cloud computing, artificial intelligence (AI), machine learning (ML), the blockchain and other recent innovations. While these technologies have enabled financial institutions to improve speed to market, enhance customer experience, and increase operational efficiency, existing core systems have made it difficult to effectively integrate these technologies in a cohesive manner.
Composable platforms allow for the combination of pre-built business solutions that create custom applications through automated programming interfaces (APIs). This approach is centered on the idea of modularity. In this approach each component is designed to perform a highly specific function, while still being easily integrated with other components within a larger, legacy core system. The goal of composable technology is to enable faster development, better collaboration and increased flexibility.
“Composable banking is the future of banking. It enables financial institutions to offer customers a highly personalized and tailored experience, while also being able to iterate and improve at speed. With the right technology, banks can easily plug and play services, creating a truly customer-centric ecosystem.” – Anne Boden, founder and CEO of Starling Bank
Characteristics of Composable Banking Solutions
Composable banking represents a paradigm shift in the way financial institutions operate, emphasizing the principles of modularity, reusability and adaptability. The concept enables banks and credit unions to build and improve the functionality of their existing technology infrastructure by leveraging modular components often offered by external partners. These components can be reused, repurposed, or replaced easily, ensuring that the overall back-office systems remain agile, deploying new solutions faster … catering to the evolving needs of customers and the market.
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