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The last decade or so has seen the biggest shift in financial services, and more specifically, banking.

The “cash-first” approach seems to have been sidelined for good across the world with many retailers and shoppers preferring electronic payments as a viable alternative.

The adoption of technologies and services like Apple Pay, Google Pay, PayPal, and AliPay has seen the concept of monetary transfers change substantially. This, coupled with the fact that today’s generation finds managing finances on their phones and watches much more convenient, provides global financial institutions with the opportunity to deliver sophisticated and secure mobile platforms to cement their place amongst competitors. 

The speed at which banking will transform to meet the evolving consumer requirements depends on the integration of automated and modernized IT infrastructure by leading banks, and on enabling digital banking experiences and engagements.

This is where things start to look up as digital banking applications are quickly becoming the faces of banks, all over the world and are becoming the key representation of each bank too. And while these are positive indicators, legacy banking apps are running the risk of holding back banks and financial services from a more streamlined and digital future. In most cases, this is exactly what’s keeping them from their competitors.

Speeding Rapid Digital Transformation

If the aim is to compete, banks will be required to accelerate the already rapid digital transformation. This includes implementing emerging technologies like Artificial Intelligence (AI), Machine Learning (ML), 5G, cryptocurrency, and blockchain.

Banks will be required to collaborate and co-engineer with new partners in interoperable environments. The responsibility of banks to better safeguard data and make use of it will also be vital in ensuring they remain competitive as consumers become more sensitive about how their data is used.

All of these changes require banks to start attracting and hiring personnel that can help them in their drive to speed up digital transformation. The trend of requiring years of industry experience when applying for jobs in financial services is also changing. But one such way banks can ensure their existing pool of talent isn’t enticed away by high-tech firms is through the modernization of their processes and technology.

The Future-Ready Bank

At the beginning of the last decade, banks were compelled to ramp up the assembly and launch of the latest and improved digital banking products and services. Even before COVID-19, the banking landscape had shifted dramatically: with new demographics, regulations, and competition coming into the picture.

Physical restrictions from COVID-19 forced retail banking customers (which comprised half of U.S. customers pre-pandemic) to mobile apps. In a report by Deloitte, over 80% of consumers who depended upon cash and checks as their primary forms of payment prior to the pandemic plan to use more digital payment tools post COVID-19.

Financial services leaders are also required to urgently enable employees to function productively, securely, and compliantly from their homes. Those with a proven digital foundation already in place were able to quickly and seamlessly transitioned to a replacement way of working and doing business while those without robust digital infrastructure began to cobble up solutions.

Every financial service and banking institution must be future-ready. The next decade of banking shouldn’t be determined by the restrictions of existing technologies or the fear of security threats.

Emerging technologies, shifting consumer expectations, and the shifting circumstances of the world we’re living in require banks to start implementing changes for the next decade. By 2030, banks should have a vision that is dedicated to empowering people, businesses, and communities so they may financially succeed from everywhere, and emerge from the pandemic stronger.

The Role of Temenos T24

Earlier this year, Temenos launched new technology propositions to help banks respond to the challenges posed by COVID-19.

While Temenos T24 presents itself as a leading transaction processing system that brings exceptional financial services. However, it lacks the analytical flexibility that banks and financial services companies have to earn a competitive edge. To be allowed access to data analysis and other benefits, banks have to integrate their core banking systems data into a far better banking application.

T24 has positioned itself as a top core banking system that’s employed by over 600 financial institutions around the world. However, to maximize its performance, banks have to combine it with integrated applications.

Five Key Benefits of Implementing Temenos T24

The most notable benefits of integrating Temenos T24 into existing core banking operations are:

Real-time consumer information

Temenos T24 is a real-time performing system, so all input information is read, processed, and available immediately. Banks and financial institutions can then combine the analysis and reporting capabilities of banking integration applications with real-time availability of core banking to gain better insight into their banking app’s performance.

More scalability

Temenos T24 is scalable and allows customers to get significant economies of scale. However, the power to scale is vital, knowing when to try to do so is even crucial. It can provide detailed insight into financial performance, allowing banks to settle on the proper time to scale their services up or down.

Low TCO (Total Cost of Ownership)

When integrating Temenos T24 into banking systems, you reduce the probability of any data pipeline errors or delays and guarantee data analysis is performed punctually, accurately, and with no errors.

Embedded product builder

T24 can help perform high-value analysis, ascertain which product features their users are trying to find, and personalize products and services to satisfy the requirements of the consumers.

Zero risk of obsolescence

The increasing competition within the banking sector has heightened the fear of being left behind. The failure to tap new opportunities can quickly reduce market share and affect the results. T24 has the potential to avoid the danger of obsolescence.

With the implementation of Temenos T24, your business can ensure a smooth functioning CI/CD for core digital banking functions with limited time to market updates on a single solution.

Kualitatem is the leading QA consulting company that specializes in providing banks and financial services with the peace of mind they need after implementing T24 into their infrastructure.

More and more banks are leaving behind their legacy core vendors. There’s no denying that a massive shift is taking place in the industry – but the positive indicator is that banks are shifting their strategies and investments in response to their customers’ needs.