LONDON, June 24, 2020 /PRNewswire/ -- In an age where you can pay for your groceries with a smartphone, transfer funds in the blink of an eye to anyone else with one, or check your balance across multiple accounts with the same app, banking is surely a long way from the days of chequebooks and cashiers. But with larger banks, these slick front-end services often rely on legacy systems that are in some cases many decades old, and becoming increasingly incompatible with the evolving requirements of modern banking.
Banks are caught between a rock and a hard place: as fast-moving fintechs chip away at their customer base, and security threats become ever more complex, do they continue to prop up their creaking infrastructures, or take the inevitable leap by completely overhauling their systems – at great expense and perhaps even greater risk?
In an article for Business Reporter, Form3's Andrew Frost explains that banks will have to adapt sooner rather than later. But legacy banks often don't have the in-house expertise to enable them to make the all-important shift to a state where their back-office lines up with the products they need to support. Which means teaming up with a third party to replace these ageing systems with a cloud-based infrastructure. Employing the ready-made expertise and resources of a fintech will still be a demanding process, as both parties will have to be fully immersed in the project at every stage, but it will still be far less risky and expensive than doing the whole thing from scratch in-house.
And the rewards will be huge. "Removing the burden of maintaining aging payments architecture, mitigating threats and the need to keep up with scheme and regulation changes will dramatically reduce capital expenditure and improve operational efficiency, enabling teams to innovate and deploy new propositions and service their customers quickly," explains Frost.
To find out more about how banks need to take the transitional plunge, read the article here.
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Trusted by financial institutions globally, Form3 is an award-winning, cloud-native payments platform connecting customers to the universe of payment schemes (FPS, Bacs, COP, SEPA, Cross Border Payments) from a single API, enabling its users to move money freely in a truly real-time payments experience.
Form3's customers include UK, European and US banks, payment institutions, card payment processors and licensed fintechs, including tier one global brands.
Form3 is regularly ranked in the Top European Fintechs to Watch by Sifted and Fintech 50, and was named Best Digital Innovation by Bobsguide 2019 and runner up in the British Bank Awards for Best Technology Partner 2020.