With over 23% of European traditional banking customers now holding a neobank account, tech-savvy neobanks are rapidly gaining ground in the global banking market. Neobanks are wooing consumers with attractive, digital-only banking services that are highly personalized and accessible. However, the increasing digitization has also opened up a host of opportunities for traditional banks. By leveraging a modernized core banking platform, banks can offer real-time, contextual experience across banking and even go beyond. Today, banks have the opportunity to embed banking into the fabric of their customer’s life. Not just that, banks can significantly optimize processes, reduce time to market for new products, and accelerate customer acquisition. The keyword however is ‘modernized core banking platform’, often called MACH (Microservices, API, Cloud, Headless) platform.
While European bank CXOs agree on the necessity of a MACH Banking Platform, there are several challenges to adopting one. Before reaching out to a transformation partner, banks would need to understand their technological strength and align transformation goals. Further, banks would need to chalk out a thorough transformation strategy which includes phases of transformation, migration strategy, budget, and timelines.
This whitepaper explores:
The key trends in the European banking landscape,
Reasons for the increase in Neobank’s market share and how banks can continue to win. The dilemmas being faced by a CXO regarding core banking modernization
Five ways a composable architecture can ease modernization
Three questions to ask while picking your banking transformation partner
