Powering the next generation of banking

The financial services industry has undergone a dramatic transformation over the past decade, becoming a dynamic, technology-driven landscape that looks almost unrecognisable from years gone by.

This digital transformation will only accelerate as Gen Z and Alpha continue to drive change. For this new generation of consumers, experience is the ultimate differentiator, making customer-centricity essential for standing out and building long-term loyalty. To succeed in this new environment, financial institutions must embrace the next generation of banking by modernising their infrastructure and products to meet the needs of today’s and tomorrow’s customers.

The backbone in modern banking

This is not without its challenges. Creating differentiated products quickly and efficiently is not always easy for banks with legacy technology systems – in part because many allocate their tech-budgets to supporting stability and compliance as the regulatory environment evolves.

Banks need to partner with innovative technology providers to stay competitive and drive meaningful innovation. When Pismo launched its cloud-native strategy in 2016, cloud adoption in banking was just beginning. The following few years would see a near-tripling of interest¹. Today, Pismo works with many financial institutions across the industry who are seeking the flexibility to scale, innovate, and operate more efficiently.

This doesn’t mean tearing out the heart of the bank, either. Modern, modular cloud-based systems like Pismo enable phased approaches to modernising infrastructure. Institutions are free to focus on what they do best without worrying about a loss of control, disruption, or increased operational risk.

Whether it’s launching new products, enhancing user experiences, or expanding into new markets, cloud-based infrastructures can enable organisations to move at the speed their customers demand in a secure and flexible manner.

A shift in mindset

Today many financial institutions recognise the importance of microservices and APIs, with more than 60% of them having utilised the technology for a year or more².

Pismo’s APIs and microservices offerings enable seamless integration, faster innovation, and enhanced customer experiences. Its APIs enable open banking integration for banks, while its microservices capabilities allow for flexible, independent system upgrades. This technology has over the last ten years helped banks to move away from legacy systems, embrace real-time processing, and bring new products to market faster.

While adopting these technologies alone doesn’t define next-generation banking, they serve as a powerful foundation for the transition. The future of banking is all about speed, agility, and convenience. Banks that have embraced these advancements can now develop new features in hours instead of months, utilising pay-as-you-go infrastructure, enhanced logging, and greater system visibility.

To fully reap the benefits of next-generation banking, organisations must aim for these transformational outcomes: deploying new features daily, leveraging real-time data for personalisation, and delivering impactful customer experiences. Success requires a shift in mindset. Just as an electric car isn’t judged by the standards of a 19th-century combustion engine, banks must evaluate modern platforms on their own merits, not by outdated criteria.

Trust and the road ahead

Consumers stay loyal to the brands they trust. But that loyalty can easily be undone by friction in the experience. To retain trust, financial institutions should stay one step ahead and deliver seamless and secure digital experiences that realise the full potential of next-generation banking for the benefit of businesses and consumers.

Those who are quick to adapt will lead this new era of banking and benefit from lasting and loyal relationships with their customers.