The unfortunate world situation with the dramatic impact on the macro-economic outlook calls now for extra focus on efficiency. Although the full short- and long-term effect on banks and financial institutions is difficult to predict due to the several uncertainties, it’s clear that we are likely to see some very demanding times.
Financial sector digitalization was boosted by the pandemic. The cloud migrations have really taken off with the major investments by the largest cloud providers with new data centers and implementation of robust governance and security standards. The massive venture capital investments in the fintech sector have added new dynamics and competition in our markets. Banks, financial institutions and fintechs need to harness the change momentum despite the new world situation to stay competitive.
Significant cost saving opportunities with additional business benefits
During challenging times it’s easy to pull the hand brake, drive cost control and delay investments, but the world is not standing still. The players that can benefit from more digital, efficient solutions and processes will gain market share through their ability to be agile, react to market changes swiftly and have competitive pricing due to the superior efficiency of modern platforms, solutions.
Banks and large financial institutions have been masters of saving operational costs during tough times through FTE cuts and various cost saving and operational streamlining programs. Traditionally the incumbents have had less merits of successful core platform, legacy system related transformation projects with good ROI. In the past the technology has not been widely available to make this easy either.
The cloud banking solutions are now credible and provide so radically different roadmap that it can be seen even disruptive and hard to believe in comparison to the old legacy systems cost, migration project and agility benchmarks. Leaving the old legacy behind and migrating to a SaaS, cloud-based core banking platform provides banks and financial institutions many benefits on top of major cost savings.
A modern, state of the art platform with broad functionality makes it possible to launch new services in just weeks, instead of months or even years. With micro service-based architecture and granular APIs the digitalization, automatization of end-to-end customer journeys can be easily orchestrated with unforeseen possibilities to integrate with new partners to add more value as well as better service to the customer.
Do not reinvent the wheel – Especially with your investors’ money
One should also really question own financial core platform development investments, understanding the costs, ROI in doing so. A ready, cloud native, state-of-the-art cloud banking platform can provide a much better ROI. Through a scalable SaaS model, you pay for the true use of the platform mirroring your business, not in excess license fees or own FTEs.
Probably even more relevant consideration than the own development versus implementation cost is the BAU, operational running cost. The savings with a SaaS core banking platform can be significant, freeing investment capacity to be targeted to better customer experience and product development instead of running or developing the core platform. The core is business critical and needs to run flawlessly, but as such is not going to make your business stand out in the marketplace. Don’t try to reinvent the wheel.
Efficient Aura Cloud Core Banking Platform with broadest functionality available
We have spent over 1,2 million hours in our Aura Core Banking Platform development since 2010 with the broadest, most efficient modular solution available in the market now. With over 6500 REST API actions and over 45 000 product combinations you have endless possibilities with extreme agility and competitive pricing to take your business to a totally new level of efficiency and with better customer experience.
Welcome to the Nordic Fintech Summit in Helsinki and listen to our CEO, Founder Prem Bhagwatsaran’s presentation to learn more about what makes an efficient core banking platform and what efficiency really means. Happy to discuss with you at our lounge how we can transform your business.
Expansion and Sales, Finland & Baltics
Aura Cloud AB
Writer Tommi Lassila has a 25+ years history in banking and payments having worked in several management roles at international, leading companies: SEB, American Express, Luottokunta/Nets and Visa.
He has a broad leadership experience in enterprise sales, key account and marketing management, strategic partnerships, business transformations and complex international regulatory & compliance projects. Tommi joined Aura Cloud AB in 2021 to support the company’s growth ambition in Northern Europe. He is based in Helsinki.
More info about word’s most efficient cloud banking platform with broadest functionality: