What are legacy core banking systems?
Legacy core banking systems are often decades old, mainframe based platforms that support a bank’s back end operations across core functions such as account opening, account set up, transaction processing, deposits processing, loan processing and more. Due to legacy technology, proprietary data models, and limited ability to interface with other systems, legacy systems can restrict a bank’s ability to rapidly deliver new experiences, products and services.
What are the business benefits in replacing legacy core banking systems?
Because established banks often feel cornered by their legacy core systems, many see investing in new core systems for digital services as a strategic priority. Digital by design, new cores rely heavily on the cloud and associated services, introduce dynamic pricing to cut costs and reduce complexity by eliminating paper processes. In addition, banks use new platforms to implement digital channels, enhance the customer experience, and launch new products and services faster than before.