From digital-first banks to the world’s best known financial institutions, the world of banking is undergoing a once-in-a-generation transformation. And as new technology gathers pace and customer expectations continue to increase, the most forward-thinking banks are embracing the power of composable applications to deliver targeted functionality and improved experiences, fast.
Digital transformation without barriers
With widespread market volatility and rapid innovation around the cloud, AI, and machine learning (ML), banks must innovate to improve their flexibility, scalability, and responsiveness. While legacy technology can become a barrier to transformation, composable applications allow banks to develop the functionality they need, then re-use and re-deploy these building blocks across multiple apps and services.
In part, composable architecture is a springboard for innovation. Banking institutions can rapidly bring processes into the digital space, from customer experiences to risk assessment and mitigation. Crucially, these digital processes can be automated and integrated with AI and ML, unlocking new ways to drive value and revenue.
Some institutions are also using standardized bundles of functionality to manage integration with legacy systems, translating data formats and protocols for seamless communication. In this way, composables enable more aggressive transformation without compromising interoperability with existing systems.
The advent of hyper-personalisation
Today’s consumers expect banking to be as seamless, relevant and personalised as the way they shop or engage with entertainment. But data from The Banker1 suggests that 94% of banks can’t deliver this kind of personalisation. Composables support personalisation by enabling banks to recombine and repurpose functionality, creating more personalised applications and experiences faster.
In retail banking, Entando’s Packaged Business Capabilities (PCBs) are being used to deliver frictionless customer onboarding, streamlining KYC (Know Your Customer) processes in ID verification and compliance with integrated risk assessments. Composables are also being used for tailored wealth management based on investment preferences and risk tolerance, as well as omnichannel engagement for more holistic experiences across online, mobile, and branches
Conclusions
Composables have the power to reinvent customer experiences and internal efficiency, supporting transformation in a way that’s flexible, agile, and impactful.
Ref Source: 1 https://www.thebanker.com/Why-hyper-personalisation-is-the-next-big-thing-in-banking-1680514156