FEATURE : DIGITAL TRANSFORMATION
Future-proofing banks through progressive modernisation
In today ’ s rapidly evolving financial services landscape , the need for banks to modernise has become urgent . Iman Ghodosi , Managing Director Australia and New Zealand , Backbase , says modernisation not only ensures a competitive edge but also ensures alignment with evolving customer expectations .
In Australia and New Zealand , legacy technology at the major banks poses significant technical risk , requiring substantial investment in core platform upgrades . The drive for simplification is essential , as innovation is hindered by fragmented back-office systems .
Many local small and mid-tier banks , which depend on all-in-one , generic solutions from established providers , encounter distinct but equally limiting challenges . As they seek to accelerate growth , there is increasing awareness that these platforms often lack the flexibility and innovation necessary to meet modern customer expectations , particularly in digital engagement . Furthermore , rising consolidation in the small to mid-tier banking sector is accelerating modernisation thinking , with banks seeking to maximise the advantages of merged entities by streamlining and enhancing technology to deliver improved digital experiences .
Simplification goes beyond reducing complexity – it ’ s about building a foundation for future innovation . This dual focus on mitigating technical risks and fostering innovation is essential for banks to stay competitive in a fast-evolving market .
Among the several paths to change , one strategy stands out : progressive modernisation . This approach strikes a balance between speed , cost and risk , making it a preferred choice for many financial institutions .
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