The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding legacy systems in banking. Opinions expressed in this article are of the individual authors and may not reflect the opinions of MeridianLink, Inc.
Digital innovation across banking and lending is at an all-time high. From instant approvals to personalized interactions, you’ll be hard-pressed to find an area of banking untouched by the rapid advancements.
But despite these improvements, 75% of banks are still struggling to implement new digital solutions due to their legacy infrastructure.
And therein lies the problem: While leaving a legacy might sound appealing, relying on legacy systems for banking and lending is less than desirable. These outdated systems can no longer keep pace with the technological capabilities necessary to meet modern consumer demands. Institutions using these systems face several challenges that can prevent true modernization:
- Complex, Costly Maintenance: Legacy systems, which often use outdated technology, require expensive, complicated upkeep. They also lack the flexibility needed to adapt to rapidly evolving digital banking and lending operations.
- Data Integrity Issues: Data quality concerns, as well as data silos between disparate systems, make gaining real-time insights difficult, which can lead to missed opportunities.
- Regulatory Compliance: Since legacy systems tend to use outdated infrastructures, compliance and security risks can arise, further impeding innovation and growth while opening your institution up to the possibility of penalties and fines.
No matter how many bolt-on solutions you try, older systems can only handle so many updates. As a result, the gap between consumer expectations and consumer experiences will continue to widen as digital banking and lending continue advancing, while legacy systems remain stuck in the past.
So, what can you do?
While updating technology certainly takes time and resources, making the switch to a modern banking and lending interface now will help prevent even bigger headaches down the road. In fact, if the earlier stat that 75% of banks are struggling to modernize due to legacy systems is any indication, upgrading your digital operations could even help you get — and stay — ahead of competitors. If such a large proportion of banks are still wrestling with outdated operations, imagine the leg up you’ll have if you upgrade sooner rather than later.
Beyond empowering your institution to be a digital trailblazer, banking and lending modernization also comes with a host of additional advantages such as:
- Greater Efficiency: Streamlined operations can lead to reduced costs and improved service delivery, enabling your institution to operate at its best.
- Enhanced Consumer Experiences: Innovative digital features and real-time services enhance consumer interactions, resulting in smoother processes and greater satisfaction.
- Agility & Innovation: Seamless integrations with emerging advancements like AI and cloud computing empower you to remain competitive and responsive to change.
Of course, adopting new technology is easier said than done — it can be difficult to know where or how to start but we can help.
Go Modern With MeridianLink
MeridianLink®, the partner of choice for financial institutions nationwide, offers innovative, purpose-built technology that helps you move beyond legacy systems to drive sustainable loan and deposit growth, as well as better consumer experiences.
Learn more about our modern solutions, from enhanced digital engagement and streamlined workflows to data-driven insights and integrations to improve fraud mitigation, each is designed to help you smoothly transition to a modern banking and lending operation.
Reach out to us via our form or stay in touch on our social platforms!