In this new digital era, cutthroat competition is out and co-existence is in.
Philippine banks, specifically, should learn to co-exist to deploy future-ready infrastructure, Aman Sud, Chief Growth Officer, ASEAN, Publicis Sapient maintained.
“Embracing cutting-edge technology is a clear imperative for banks seeking to thrive in the digital era. The adoption of a modern core banking system and a comprehensive infrastructure overhaul necessitates the strategic concept of coexistence, which proves to be a highly effective path to success,” he explained.
“Nevertheless, meticulous planning for coexistence becomes increasingly critical as the scale of the bank expands.”
Also, each bank will have its own unique and complex data landscapes, so there is no one-size-fits-all model when it comes to coexistence.
But if local banks embrace co-existence, first, they should set up the right team of experts to ensure comprehensive planning and decision-making during their transition state.
Secondly they should use technology to support co-existence.
Third, unvesting tactically in legacy can help if they remember to plan for legacy decommissioning.
Changes to the source system or data are needed to enable a successful transformation.
For example, additional flags or tags may be required on legacy accounts to indicate which have been migrated.
Banks should plan these changes early with the teams supporting the legacy core to ensure that things go smoothly.
Equally important is that there are concrete steps in place within the migration plan to decommission the legacy estate, to ensure stakeholder buy-in on the journey, and to recognize the full benefits of the core modernization program.
On their way to a new digital core, banks can position themselves to embrace the concept of coexistence by adopting the right tools, adopting a well-planned approach, and adopting a strategic attitude.
In the future, the banks that are successful in this modernization path will become the leaders, according to Aman Sud.
Already, accelerated digitalization is transforming the Philippines’ financial sector.
This year, the Central Bank targets to shift 50% of retail payments digitally and onboard 70% of adult Filipinos into the formal financial system.
TECHNOLADY 