The Next Big Challenge for Banks

Building a Core Platform is a Must

It’s time consuming for banks to build a new core platform, but that’s what U.S. banks must do in order to move faster and avoid being disrupted. 

Banks generally are hobbled by back-end core tech systems, and to deal with that, they’ve reached for low-hanging fruit: Tech front-end solutions such as web sites and mobile apps. They must turn to modernizing their core systems to give them the ability to to operate with the speed and agility required in an increasingly fast-paced and complex world. This McKinsey article spells out ways to do that. 

One way for banks to do this is to follow a two-step process: hollow out their existing core while selecting multiple next-gen cores to test on slices of their product portfolio in a real-world test-and-learn process, the article states. A delicate and complex undertaking, to be sure, but likely better than the other options … and something that is rapidly becoming a cost of doing business. 

Jason Searfoss
CFO, Co-founder