Editor's note: In the spirit of Thanksgiving, we’re reflecting on the aspects of digital banking we’re thankful for: microservices, fintech partnerships and the elimination of silos.
It’s that time of year where we reflect on the things for which we are grateful. Those of us that regularly use digital banking are certainly thankful for the conveniences it adds to our day-to-day lives.
For the financial institutions that support the digital banking services we use, keeping up with our expectations about the level of convenience, access and availability is challenging. However, there are three elements within the digital landscape that are helping with this challenge. It is likely that many of the banks and credit unions that have incorporated these into their digital environments are thankful that they did.
Microservices are extremely appealing to banks and credit unions because they simplify the process related to the development and implementation of new services and applications. Microservices allow institutions to divide large systems and applications into smaller systems to improve modularity and allow for updates and other improvements to be made without impact to the larger system. In an environment where these smaller, discreet elements can be developed, tested, implemented and continually updated independently, financial institutions can eliminate the bottlenecks and complications that slow time to market for the latest fix or the newest innovation while also strengthening the overall system.
- Fintech partnerships
It used to be that many fintechs were seen as threats to banks and credit unions. Today, many are considered an essential part of the strategies financial institutions must implement to remain relevant. Partnering with fintechs allows institutions to more rapidly offer consumers the latest features and functions. For the fintech, a bank or credit union represents a way to scale up the distribution of their products to end users. Though the saying is well worn, it is truly a win/win. When structured correctly, the parties involved have much for which to be thankful.
- Elimination of silos
As banking has expanded to offer more types of services, banks and credit unions have expanded their IT infrastructure to accommodate the expansion. The result is a siloed operational landscape that is costly and overly complex. The dawn of the smartphone and the various devices and services that followed has made the negative impacts of these silos worse. Today’s digital banking platforms address the cost and complexity of these siloed systems by providing solutions that include platforms which consolidate many services in one place. From this platform a comprehensive set of services can be delivered to consumers using the various digital devices they own. Cost is lower, complexity is decreased and overhead does not require as many cycles as it once did. The banks and credit unions using these newer digital banking solutions seem to be very grateful.
These three points have one common theme - breaking down barriers between services and solutions to provide a seamless experience for the consumer. As digital banking consumers, we know expectations center on receiving a seamless and secure experience. Banks and credit unions that avail themselves to the elements described above generally have very grateful customers and members.