Common Pitfalls of Banking Legacy Modernization

1. Common Pitfalls of Banking Legacy Modernization ©Copyright by Jmrinfotech.com

2. The world of digital banking solutions is changing. Customers are becoming more educated and demanding, and the need for innovation is greater than ever. Legacy modernization is a process that is making it easier for banks to stay competitive in the modern world, and upgrading it is a complex and daunting task. The process can be made easier, but there are some common pitfalls that banks need to avoid. They include: ©Copyright by Jmrinfotech.com

3. 1. Lack of transparency in digital transformation processes • A big problem with banks and the way they manage digital solutions like the Oracle digital banking experience is the lack of transparency. Digital transformation involves a lot of moving parts and many handoffs. If a process isn't clearly defined and communicated, there's a good chance that it will fall apart. ©Copyright by Jmrinfotech.com

4. 2. Misunderstanding of the goals of modernization • There are set goals for modernization projects, and then there are the project goals that each team member thinks the goal is. Without the correct goals, a team will end up heading down a path that doesn't deliver the intended results. Getting the two to mesh accurately is a crucial challenge. ©Copyright by Jmrinfotech.com

5. 3. Implementation challenges and unintended consequences • Another major pitfall of legacy modernization is that companies often don't put the necessary components in place to ensure the successful maintenance of older applications. We're big advocates of having a dedicated team of developers working side-by-side with the business, as they'll be the ones to eventually work on the platform every day when under-the-radar issues pop up. ©Copyright by Jmrinfotech.com

6. 4. Resistance to change by employees and customers • The emergence of new technologies in banking can be a challenging time for employees and customers alike. Consumer expectations are constantly evolving, and mobile banking is a great way to stay ahead of consumer demand. If it's not available, you'll be immediately giving customers an excuse to look to your competitors.  ©Copyright by Jmrinfotech.com

7. 5. Lack of communication and collaboration • Difficulties in communication can drive customers crazy, but it's even worse when your company isn't even communicating with itself. Failure to communicate and collaborate can be deadly, as it can lead to crossed wires between departments, inefficiencies, and mistakes. Keep everyone up to date. Be open and honest as much as possible. That's how you achieve legacy modernization. ©Copyright by Jmrinfotech.com

8. 6. Not including regulators in ensuring a successful modernization process • A successful banking modernization involves regulators in the decision-making process from the very beginning. This ensures a clear understanding of existing regulations that affect any modernization projects, the classes of data and systems affected, and the scope of any required change management and testing. Having regulations, rules, and policies clearly defined and communicated prevents any delays in project approval and allows for a smooth roll-out of the new systems in a way that is auditable and risk-aware. ©Copyright by Jmrinfotech.com

9. 7. Misunderstanding the role of technology  • There is only so much that technology can deliver on its own. Combined with the appropriate processes and policies, OBDX can be the backbone of a bank that uses risk-weighted data in every aspect of its decision-making and risk management. Technology has the disadvantage of needing to be well understood as a tool with clear functionality. Without the appropriate processes and policies to take advantage of technology, it does not provide a bank with a competitive advantage. ©Copyright by Jmrinfotech.com

10. 8. Process redesign failures  • The legacy redesign process can be fraught with problems. Banks need to adopt a new vision, mission, and strategy. If a bank has a sound vision, mission, and strategy, then the next step is to identify and adopt the design elements that will enable them to realize that strategy. Unfortunately, some banks still have poor strategies in their redesign plans.  ©Copyright by Jmrinfotech.com

11. Conclusion: • Legacy modernization and improving digital banking solutions is a challenge, with significant exposure to project risk and failure. While many factors influence the ultimate success rate of projects, one recurring theme from experience is the lack of a formal process for risk assessment and management before, during, and after the project. ©Copyright by Jmrinfotech.com