Digital transformation has been changing the way businesses large and small operate dramatically over the last few years, with recent events only bringing the necessity for them to adapt into even sharper focus.
In an article for Business Reporter, Elliot Limb, Chief Commercial Officer at Mambu, argues that increasing demand for online banking services will push traditional banks to innovate more quickly – and that they can learn a lot from the fintech playbook.
Upgrading legacy systems is a major part of digital transformation, but the process can be costly and unwieldy, and reaching a decision on how to do so can stall digital transformation. Digital transformation also requires a degree of risk-taking, but because banks are naturally risk-averse this can make progress difficult.
In the same way in which fintechs have been able to build better customer experiences as they enable constant iterating and improvement, banks need to be able to create an environment where they can be able to experiment without fear, says Limb. And although it can seem like an insurmountable task, many large banks – such as Santander UK and ABN AMRO – have been success stories in a new approach, which Mambu calls composable banking.
Composable banking creates the space for banking and fintechs to experiment without having to first take the risk of dismantling their existing legacy systems. This tech-driven approach enables organisations to build new technology within, or in parallel to, the old, which means you don’t need to risk tearing everything up. It’s also customisable, giving you the specific components you need to create a great customer experience. You can use stateless APIs to build new products and services, and avoid vendor lock-in by building a community infrastructure that scales with your customer demand.
To read more about Mambu’s approach to a safer, more streamlined approach to digital transformation, read the article here.