In a recent interview with Sibos TV, 10x Banking’s Chief Revenue Officer, Matt Mills, speaks about innovation in financial institutions. They explore how and why core technology transformation is critical to enabling full transformation without compromise in banking.
Numerous banks and financial institutions are struggling with outdated legacy core technology systems, making it difficult to offer the innovative products and services that today’s digitally-focused customers expect. Sibos TV’s Angie Lau and Jonny Nelson speak to Matt about how the rapid advance of AI will reshape the customer experience—but only if we can transform the core technology.
The Weight of Legacy Technology
Many banks today are still anchored by core systems built 30, 40, or even 50 years ago. While these systems are stable, they weren’t designed for the flexibility and scalability that today’s digital-first retail and corporate banking customers demand.
The challenge—and the opportunity—they face is to deliver real-time services, personalization and flexibility on a massive scale, all while maintaining enhanced security. Neo core solutions, in widespread usage today, enabled the growth of small, innovative banks when they were first introduced. These were banks that could expect to serve maybe 1-2m customers effectively. But these systems are limited in scalability, and so banks need a new type of core technology that keeps the innovative benefits of neo core, but removes the compromise that comes with a lack of scalability.
That’s why, earlier this year, 10x Banking released the world’s first meta core platform. The meta core was designed specifically to address these constraints. Unlike traditional systems, the meta core is modular, highly scalable, and adaptable. It gives banks the freedom to develop products quickly and at a lower cost, responding to customer needs with agility and precision, without compromising on security.
The digital shift underway in society at large is creating new demands for banks and financial institutions. It has created customers who expect immediacy, whether they’re transferring money, applying for a loan, or purchasing new financial products. They want these services to be easy, intuitive, and—most importantly—fast. Banks are aware of these expectations, and know they need to adapt.
Unlocking full transformation in banking
Recent research commissioned by 10x Banking shows the urgency banks feel about modernizing their core systems.
93% of surveyed bank executives acknowledged that their success hinges on selecting the right core solution, with 55% citing legacy systems as the main barrier to full digital transformation. It’s a stark reality, but one that’s driving change across the industry. In fact, 42% of the banks we spoke to plan to replace parts of their core systems within the next year—a clear sign that the industry recognizes the need to adapt.
At 10x Banking, we’re proud to be part of this transformation, providing banks with a technology stack that reduces costs and enhances flexibility. This allows them to deliver the innovative, flexible, cost-effective services that customers expect today.
Looking Forward
In the next five to ten years, the banks that embrace core transformation will redefine what it means to be customer-centric. As the banking industry adapts, it’s clear that success will depend on modern infrastructure that enables not just digital services, but services that are proactive, intelligent, and seamlessly integrated into our lives.
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