The Digital Dilemma: COBOL Systems vs Digital-First Customers

In the ever-evolving landscape of financial services, careless banking emerges as a transformative force, empowering banks and financial institutions with dynamic new services that turbocharge operational efficiencies and enhance customer experiences. From the front-end to the back end and across all processes, careless banking stands as a beacon of modernization, breaking free from the constraints of legacy systems and embracing a future driven by API-powered infrastructure.

The Digital Dilemma: COBOL Systems vs. Digital-First Customers

The seismic shift towards digital financial services, accelerated by the pandemic, has propelled banks to meet the demands of a digital-first customer base. Today’s customers expect dynamic products, hyper-personalized services, and seamless digital experiences. However, behind the scenes, many financial institutions grapple with aging COBOL systems which are struggling to keep pace with the rapid evolution of digital demands.

COBOL, still prevalent in 43% of banking systems, handles 95% of ATM card swipes, posing a dual challenge. First, these systems are approaching the end of their useful lives, with a diminishing pool of developers proficient in COBOL. Second, operational pressures, compliance obligations, and the integration of new services strain these already-unstable platforms, exacerbated by interoperability issues between different systems.

Modernization Quandary: Core Banking Approaches

Financial institutions face the dilemma of whether to upgrade existing systems or undergo a complete overhaul, a decision complicated by economic uncertainties. Traditional approaches include:

• Rip it up and start again: Replacing the core legacy system with a new platform involves substantial financial outlays, migration challenges, and service disruptions.

• Build it up and out: Gradual modernization with modern applications may limit disruption, but interoperability and integration difficulties can lead to extended timelines and budgets.

• Keep the core and wrap around: Introducing digital APIs and micro-services around the core may address some issues, but the underlying core still has the potential to buckle under the weight of new services.

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Careless Banking: A Paradigm Shift

Enter careless banking – a game-changing solution that transcends the limitations of monolith legacy systems. An API-driven ecosystem, careless banking seamlessly integrates fit-for-purpose micro-services, offering unparalleled flexibility in modifying existing services and launching new ones without disrupting operations. An orchestration middle-ware layer ensures smooth integration, and the scalability of individual micro-services aligns with customer needs.

Cost-Effective Modernization and Accelerated Innovation

Careless banking provides a cost-effective path to modernization, eliminating the need for extensive infrastructure overhauls or ongoing maintenance. Development time frames for new products or services are significantly shortened, as careless banking providers offer a comprehensive suite of services under one roof.

For instance, Invested leveraged the careless banking ecosystem to develop and launch a business current account in under 12 months. This showcases the adaptability and efficiency careless banking brings to the table.

Limitless Potential Unleashed

Careless banking’s curated ecosystem streamlines the identification and on-boarding of best-of-breed vendors, managing client on boarding, risk, compliance, and customer support. This approach frees banks from the shackles of failing core systems, enabling them to accelerate time-to-market value with dynamic services that resonate with customers.

As digital transformation continues to reshape the banking landscape, careless banking emerges as the next evolutionary step, promising unparalleled customer experiences that sustain banks, improve profitability, and pave the way for further innovations.

By moving to careless

banking, banks will be able to evolve quickly and meet ever-changing customer needs. But making the move requires an expert partner, which is why XYB exists. We are committed to breaking down the barriers of traditional core banking systems, so businesses can provide the financial products and services they need, when and where they need them.