Having an impressive mobile app or an AI-powered chatbot isn’t enough for a bank to be truly digital. Digital transformation at a bank requires overhauling large chunks of technology infrastructure and systems. To deliver the personalized, real-time, and seamless experiences that today’s customers expect, banks must replace their outdated core banking systems with a modern Digital Banking Processing Platform (DBPP). Major banking institutions around the world, including Chase, Navy Federal, Lloyds Bank, Emirates NBD, and ANZ Bank New Zealand, have selected modern DBPPs for their flexibility and adaptability. Now those banks can better support evolving customer needs, enable innovation, and improve operational effectiveness and regulatory compliance.
The Challenge
Banks’ aging legacy systems present regulatory compliance issues, are hard to secure, make innovation all but impossible and are difficult to maintain. Business and technology leaders at banking institutions around the world are increasingly embracing cloud-native, open, modular, and connected core systems – the key elements of DBPPs. But transforming to a modern DBPP will take significant effort. The transition requires the modern DBPP and legacy core systems to coexist while the bank maintains its operational effectiveness, security and privacy, and complies with regulations.
The Opportunity
Banks that complete the migration will be able to rapidly launch new products, deliver new services and customer experiences, integrate with ecosystem solutions, and leverage advanced technologies like AI. DBPPs enable banks to seamlessly serve their customers in real-time in whatever channel they choose, even embedded ones. These platforms are built from the ground up to optimize middle- and back-office operations and reduce costs. And most importantly, DBPPs streamline continuous regulatory compliance in record keeping, data security and management, sustainability, customer verification, and threat detection.
In The Digital Banking Processing Platforms Landscape, Q3 2024, Forrester clients will get an overview of the DBPP marketplace for retail, SME, and corporate banking. The report discusses 26 notable DBPP vendors, the market’s dynamics, the business value of these platforms, their functionalities and use cases, and how to work with the vendors.
To explore how to transform your banking infrastructure with a DBPP in a personalized guidance session or inquiry, book time with me here.
Not a Forrester client? Contact your Forrester account team now to learn more.
