The following is a guest post by Robin Smith, Regional VP, North America, Mambu . As technology is reinventing digital experience in other verticals, such as social media, entertainment, commerce, and more, customers expect their banking experiences to provide the same experience and integrate into every part of their life. Fintech advances, including emerging digital neobanks, embedded banking, artificial intelligence, and other tools, are expanding consumer options. These advances have increased competition for FIs, but many struggles to be agile in incorporating these capabilities and transforming their customer experience due to their legacy technology. Legacy has its limits In the past, monolithic legacy tech architectures were the norm. Under legacy frameworks, FIs work with a single vendor to satisfy all their needs – whether with loan origination, account opening, or credit decisioning – which is incredibly difficult to manage. For example, developers spend most of their time maintaining infrastructure and upgrading systems, only spending an estimated 32% of their time developing new software using standard APIs. Legacy frameworks locked FIs into multi-year contracts with a single provider and limited the institution to the capabilities that the vendor provided. This single-vendor model isn’t necessarily easier on a FI to manage: […]
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