Traditional business models at financial institutions have relied heavily on complex legacy technology. Unfortunately, as the digital evolution of the financial industry has reshaped how banks and other institutions do business, legacy technology no longer provides the essential support needed to thrive.
Dealing with legacy technology in 2022 can be complicated and finding the necessary expertise to deal with this technology can be hard. For financial institutions to find an effective solution for dealing with legacy tech, partnerships with FinTech companies are key.
In this article, we discuss the state of legacy systems in 2022, the challenges financial institutions face, and how FinTech organizations can help. Keep reading to learn about how CPQi can transform your legacy system into a functional and modern platform.
The State of Legacy Systems in 2022
Traditional financial institutions have a lot of legacy technology built into their digital infrastructure. This can be a major inhibitor to digital development and transformation, as these systems are often outdated and upwards of 25 to 50 years old.
According to a recent article from Deloitte:
“ – Many banks are still reluctant to upgrade their core platforms and apps. One reason is the central position those systems occupy in the overall banking architecture, which makes it likely that any changes to a bank’s core platforms and apps will have a widespread impact throughout the bank’s channels and operations.”
In terms of updating legacy systems or integrating them into new digital platforms, this can be a difficult task to achieve, as many financial programmers these days are no longer familiar with the coding languages required to make fixes or changes.
Plus, tech experts who fully understand legacy technology can often be few and far between.
Challenges Facing Institutions Working to Modernize Legacy Systems
When dealing with legacy technology, there are many key challenges a financial institution must face.
While it is easy for consultancy businesses to recommend moving to a digital platform, the reality of this task is that with the wrong partner, it can be highly laborious to update or remove the legacy technology underpinning your systems. Not only does this require a lot of high-level project management but it also demands the addition of talented professionals who know the complex nuances of working with financial technology.
However, CIOs at financial institutions are increasingly prioritizing a shift from legacy systems to more modern and technologically-focused platforms.
In PWC’s recent Pulse Survey, 35 percent of CIO respondents said that leveraging infrastructure investments to move from traditional data centers to cloud-based ones was a top priority in 2022. A further 43 percent stated a desire to refine their IT strategies and operating models to be more agile.
With these priorities and goals in mind, a major challenge for financial institutions is finding the right talent to carry out the necessary transformational and transitional tasks to move away from legacy technology.
How FinTech Partnerships Help to Overcome the Legacy System Hurdle
FinTech organizations – such CPQi – offer financial institutions access to both the talent and resources needed to manage legacy technology efficiently.
CPQi is intimately familiar with legacy platforms. Not only this but FinTech experts also understand the newer technologies, including how to implement them and integrate legacy systems to allow for a seamless transition.
Additionally, the right FinTech partner will offer not just high-level implementation capabilities but also essential ongoing support and managed services. These services make business growth and digital development far easier, all while being deployed according to an institution’s specific platform requirements and budgetary restrictions.
Moreover, a FinTech partnership gives a financial institution the ability to bypass the need to recruit and onboard new employees. Instead, an institution can rely on its FinTech partner to provide the necessary talent on-demand, as needed.
Final Thoughts: CPQi Provides Cost-Effective Solutions for Legacy Systems
CPQi has been working in the global finance industry for more than 15 years, with offices located all across the Americas. Our nearshore offices make it easy to find a team that works within your region and time zone and understands the complexity of both regional and international financial markets.
With CPQi as your partner, we can help your institution to de-risk while also enabling growth, all while staying committed to a highly efficient timeframe. Many of our projects that deal with legacy systems take only 4 to 5 months to establish a functional and profitable new platform.
Plus, we utilize a split-site work environment that allows for cost-effective and flexible rates.
To address the needs of a legacy platform, our team at CPQi will ensure the platform is functioning properly and fix anything in need of fixing. Rather than pushing your institution to make a full transition to a new digital platform, CPQi will provide the necessary support for older technologies while also helping to source and implement newer technology at an affordable price.
In addition to being legacy tech experts, the CPQi team is also highly experienced with cloud technology and robotic process automation (RPA). With the cloud being a point of focus for many institutions nowadays, having this level of cloud expertise is essential for making sure an institution’s platform remains secure and in good standing with regulatory compliance.
👉 Learn more about RPA in banking here!
We at CPQi are always eager to get to know new financial institutions and look forward to each new project that comes our way. To learn more about our services and solutions, visit our website today or contact our team to set up your first consultation.