{"id":14113,"date":"2019-12-06T09:11:52","date_gmt":"2019-12-06T09:11:52","guid":{"rendered":"http:\/\/bulletins.bfconsulting.com\/?p=14113"},"modified":"2019-12-06T09:11:52","modified_gmt":"2019-12-06T09:11:52","slug":"moving-past-legacy-systems","status":"publish","type":"post","link":"https:\/\/bulletins.bfconsulting.com\/en\/moving-past-legacy-systems\/","title":{"rendered":"Moving past legacy systems"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Competition in the banking industry is intensifying, with neo-banks winning more of the market share, FinTechs targeting ever more lucrative niches and BigTech players leveraging their large customer bases. These disruptors are able to grow their businesses (and attract customers) at a much better rate than traditional financial institutions thanks to their use of modern core technology, which enables them to innovate faster and operate more efficiently. Traditional financial institutions, in the meantime, are stuck with the limitations of the legacy systems they use. While some traditional financial institutions have already started moving beyond this, some have remained on the sidelines and are struggling. For these institutions, there are three main choices if they want to survive:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Full replacement of the core with a new tech stack<\/b><span style=\"font-weight: 400;\"> \u2013 this option can be risky as it requires extensive data migration and the benefits are typically only realized when the final customer is migrated and the legacy systems are decommissioned.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Progressive modernization<\/b><span style=\"font-weight: 400;\"> \u2013 this option retains the legacy platform but also progressively minimizes it as modern architecture is built around it. While the approach is lower risk, transition timelines are usually slow, and financial institutions may not achieve desired levels of efficiency and time-to-market.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Greenfield banking proposition built on a new tech stack<\/b><span style=\"font-weight: 400;\"> \u2013 this option enables the quick launch of new offerings and delivers value in a short timeframe. It is often considered less expensive than the other options and safer because the existing customer base is not exposed until the proposition and technology are proven.<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/www.mckinsey.com\/~\/media\/McKinsey\/Industries\/Financial%20Services\/Banking%20Blog\/Next%20generation%20core%20banking%20platforms%20A%20golden%20ticket\/CoreBanking_804_Ex1_v3.ashx\"><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.mckinsey.com\/~\/media\/McKinsey\/Industries\/Financial%20Services\/Banking%20Blog\/Next%20generation%20core%20banking%20platforms%20A%20golden%20ticket\/CoreBanking_804_Ex2_ver2.ashx\"><\/p>\n<p>&nbsp;<\/p>\n<div class=\"rpbt_shortcode\">\n\n<div id='rpbt-related-gallery-1' class='gallery related-gallery related-galleryid-14113 gallery-columns-3 gallery-size-thumbnail'><figure class='gallery-item' role='group' aria-label='Video: the single most important factor to startup success'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/video-the-single-most-important-factor-to-startup-success\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2019\/02\/The-single-biggest-reason-why-start-ups-succeed-Bill-Gross-150x150.jpeg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-12201\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-12201'>\n\t\t\t\tVideo: the single most important factor to startup success\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='Alfa-Bank launches new international marketplace platform'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/alfa-bank-launches-new-international-marketplace-platform\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2018\/08\/Artboard-1-150x150.png\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-10523\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-10523'>\n\t\t\t\tAlfa-Bank launches new international marketplace platform\n\t\t\t\t<\/figcaption><\/figure><figure class='gallery-item' role='group' aria-label='How generations Y and Z are changing how banks operate'>\n\t\t\t<div class='gallery-icon landscape'>\n\t\t\t\t<a href='https:\/\/bulletins.bfconsulting.com\/en\/how-generations-y-and-z-are-changing-how-banks-operate\/'><img width=\"150\" height=\"150\" src=\"https:\/\/bulletins.bfconsulting.com\/wp-content\/uploads\/2018\/03\/multi-ethnic-young-people-using-smartphone-and-tablet-computers_1139-994-150x150.jpg\" class=\"attachment-thumbnail size-thumbnail\" alt=\"\" decoding=\"async\" aria-describedby=\"rpbt-related-gallery-1-8859\" loading=\"lazy\" \/><\/a>\n\t\t\t<\/div>\n\t\t\t\t<figcaption class='wp-caption-text gallery-caption' id='rpbt-related-gallery-1-8859'>\n\t\t\t\tHow generations Y and Z are changing how banks operate\n\t\t\t\t<\/figcaption><\/figure>\n\t\t<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Competition in the banking industry is intensifying, with neo-banks winning more of the market share, FinTechs targeting ever more lucrative niches and BigTech players leveraging their large customer bases. These disruptors are able to grow their businesses (and attract customers) at a much better rate than traditional financial institutions thanks to their use of modern &hellip;<\/p>\n","protected":false},"author":5,"featured_media":14202,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,367],"tags":[35,49],"_links":{"self":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/14113"}],"collection":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/comments?post=14113"}],"version-history":[{"count":1,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/14113\/revisions"}],"predecessor-version":[{"id":14114,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/posts\/14113\/revisions\/14114"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media\/14202"}],"wp:attachment":[{"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/media?parent=14113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/categories?post=14113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bulletins.bfconsulting.com\/en\/wp-json\/wp\/v2\/tags?post=14113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}