Offer customers more personalized experiences whilst delivering the benefits of digital transformation

November 25, 2021

In a post-pandemic world, core banking systems are in urgent need of updating and modernizing to cater for the ‘new normal’ expectations of customers, from real-time payment support to more relevant product recommendations with personalized pricing based on their specific circumstances.

Modernizing core banking systems is essential for enhancing customer experiences. Yet, modernizing the core is not an overnight sensation and can require transition roadmaps that span several years. Therefore, it is important to find ways to offer customers more personalized experiences, whilst the benefits of digital transformation are delivered in parallel.

The biggest challenge for banks is overcoming the limitations of legacy systems in a microservices era. Nowadays, interoperability and seamless integrations are critical to creating smooth processes within the bank and a frictionless customer experience.

From a customer data perspective, there have been multiple business functions that banks have built within the core that should typically sit outside of these.

The benefit of a smart CDP is that you can aggregate customer data from the core and apply analytics on top, which in turn provides customer intelligence that can create much more intuitive customer engagements. It enables the business as a downstream beneficiary of aggregated core data in creating personalised journeys.

McKinsey suggests that banks apply ‘Progressive Modernization’ in order to build a more digital bank that operates in parallel with the legacy CBS. This is covered in the first of their three principal phases to core banking modernization.

Progressive migration, as referenced in Finextra, is a popular strategy among banks, largely because there is a need to realize personalization efforts in-market as quickly as possible to compete with the FinTechs that are already leading in terms of digital engagement. In summary, banks can avoid personalization pitfalls by working with legacy systems whilst building a more modern core architecture simultaneously.

NGDATA’s Intelligent Engagement Platform allows banks to personalize processes with intelligent algorithms and sophisticated scoring early in the modernization transformation journey. A key use case to illustrate this is onboarding with a pre-eligibility checks and education which is performed by the Intelligent Engagement Platform, and therefore, banks can achieve a faster time to revenue while staying compliant with KYC rules.

Read more on ‘The Power of a CDP in Banking Digital Transformations’ or read our white paper ‘Core banking modernization with a CDP: A win-win for IT and Business’.