Digital transformation

Banks are beginning to accelerate their actions toward meaningful change.


Banks are beginning to accelerate their efforts to bring digital capabilities to the front end while modernizing their enabling technology and operational stacks on the back end.  These efforts are all encompassing and complex, but we are working with our clients to promote incremental change and quick wins that build momentum toward the longer-term goals. 

In this video Mitch Siegel, advisory banking leader, provides an overview of his insights gained through ongoing initiatives on the pace of industry movement and the patterns that are beginning to emerge as banks begin to accelerate their actions toward meaningful change.

Mitch Siegel

Mitch Siegel

Principal, Financial Services Strategy Leader, KPMG US

+1 404-222-3263

Video transcript

Many of our clients right now are really straddled by their legacy technology stacks and what we talk about is their ability to really innovate, and be nimble, and serve customers in the way that people are used to their experiences. Now whether they go into a coffee shop or they're ordering something online through an eCommerce site, they really require that kind of transparency and flexibility of products and services, and our banking clients just really been historically struggling to respond to that based off of some of the legacy technology and the processes built around those technologies that in many cases has been 30 or so years in the making. So, when we talk about modern technology in a particular modern core, what we're really talking about is sort of an innovation at the the center of that to really make that technology much more agile and to introduce patterns that will allow for a more expeditious use of resources to personalize offers to customers and bring to bear better experiences.

The modernization of that infrastructure is complicated because traditionally there's been a myriad of things that are all integrated together. Potentially, it could be hundreds of different systems that are integrated together and processes that have been built around those systems for years and years, in many cases, 30 years or so. Some of the challenges is really just how do you kind of unwind all of that, that it's all running today. It's kind of like the analogy of changing an engine in mid air on a jetliner because the bank is running, those processes are in place, people are using products and services and really to change the core of that is a complicated endeavor.

At the center of some of those legacy challenges that I alluded to is really what we call core systems. Essentially, those core systems are the platforms of the bank that are really running kind of the ledger, so to speak, the debits and the credits processing customer transactions. Those are really at the heart of what's really complicated to replace, but we see really a pivot point right now where some of the technology patterns to be able to replace those are really maturing now, and the architecture, and the use of cloud based technologies, and those things, it's making it a little bit easier to replace those core technologies.

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