Aging integration approaches based on developer tools can no longer address contemporary problems that financial institutions face. Technology problems that many of these tools solve are confined to certain areas like compliance, regulatory, etc. To flash better than competitors, financial service providers must layer information & information systems and set up a connected financial enterprise.
Customer demands in the financial sector have become more complicated over time. Customers expect services anytime, anywhere, and as per their terms. It’s important to “expand the bank” and not just run the bank. Financial enterprises should look out for ways to integrate and scale out their information systems to deliver digital offerings in a better way.
Structural and Cultural Barriers Slowing Down the Financial Enterprises
Many back-office systems, i.e., accounting systems, loan servicing, and payment processing, etc., in financial institutions are still powered by mainframes. These business critical systems have been integral to their core and continue to serve the purpose. However, these decades-old systems lack flexibility to meet the demands of next-generation delivery channels that have come to the fore.
For instance, most of the banking systems in use only support batch processing of data. This processing entails the parsing of data for specific operations like loan disbursement, reconciliation etc. This batch processing consumes a lot of horsepower and it delays data exchange. This method is not feasible for processing data in a connected world where several new & old technologies run in parallel.
Setting Up a Connected Financial Institution
Replacing the legacy systems with cloud-based systems will not be a wise decision as most of these systems continue to be in use and there can be hidden opportunities in the data which they hold. The right approach is to layer these systems and fill the knowledge gaps to ensure smoother data exchange between new and old systems. Layered integration enables financial enterprises to align already running systems with high-throughput banking technologies and introduce service agility layer in their system.
With better connectivity, enterprises get a bi-modal approach to integrate aging systems and bridge legacy data with cloud, web or mobile platforms. Enterprises can now develop loosely coupled services, separate utility services and hold data processing logic. The availability of custom libraries improves time-to-value and enables users to access customer data and expose it in the right way. In a connected ecosystem, financial institutions can augment existing services and replace spiraling technical debt like proprietary, heavier tooling with popular open source standards and tools.
A Framework that Makes Financial Data Integration Easy
Adeptia’s financial data integration accelerators enable integration for fast and smooth electronic data interchange. The solution enables hybrid connectivity that fends off devastating outages and traffic outages. Enterprises get the constructs to envision the integration vision that supports application integration, product innovation, and legacy modernization initiatives. It becomes very easy to modernize mainframe engines by connecting them with next-generation cloud technologies.
With Adeptia, financial enterprises get 6X agility and go-to-market capabilities without heavy engineering, coding, or development cost. Business users can unlock value from data and reuse it for streamlining processes.
View this case study to know more about the framework that is designed to meet current and future integration needs of financial institutions.