Making the move from a legacy core banking system to one that’s designed for the digital age is a significant step for any bank, but it doesn’t have to be a prohibitively expensive and resource-intensive endeavor. To achieve the goal of modernizing your midsize bank’s core systems in a sustainable manner, you need to come up with a digital transformation roadmap that’s specifically suited to the needs and goals of your organization. This way, throughout the process, you can always consider the parameters that are unique to your midsize financial institution, such as the budget for the modernization program, the processes that will be prioritized during the upgrade, and the opportunities that digital technologies will make more accessible to your organization.

One of the benefits of modernizing your legacy banking system is having the capability to offer robust digital payment solutions to your clients. In the age of digitalization, having the right digital payment solution will help your financial organization adapt to the new ways that consumers and organizations wish to conduct business and settle their financial commitments. Here are 5 reasons why your midsize bank should prioritize the implementation of a robust digital payment solution today.

 

Use Modular Payment Processing Systems

There are plenty of differences between the requirements of corporate and retail banking, so a midsize bank with both departments needs to be able to support a wide range of financial services and products. Legacy systems often have limited options for customization, but tools that are designed for the digital age are built to offer banks—and their corporate and retail clients, by extension—more options for optimization. In particular, digital tools make it possible for banks to present their clients with payment solutions that feature modular components. These payment solutions are capable of dealing with different currencies and entities under the same account, but without the complexity that comes with doing the same task in legacy systems. Having access to such a tool will empower your midsize bank to manage more or bigger accounts while keeping costs at a minimum and without experiencing a drop in the quality of service.

 

Offer Customers Flexible Payment Options

Each account has its own set of needs from its financial services provider. A large company, for example, may need to partner with a bank that can handle multiple levels of clients in a single account. At the same time, such a company may require different routes and processes for managing the payments for each client. Using legacy systems, supporting such a complicated account network can be a time-consuming task, as it can be difficult to organize clients in such a way that it reflects their real-time relationships with each other. It can also be a challenge to implement guidelines that are specific to one or more clients that belong to a single umbrella account. Fortunately, payment solutions that employ digital tools are designed to manage such complexities with relative ease and speed. This capability, paired with the offering of modular payment processing systems, will enable your bank to accommodate more payment options for your corporate clients.

 

Host Frictionless Payment Experiences

Most if not all corporate clients require payment solutions that can navigate different applications. This is because many of the transactions that they initiate or complete have to go through different financial organizations, which in turn use a wide variety of applications. Many legacy payment solutions do not have the capability to immediately account for the different requirements that a transaction must adhere to. This can cause delays in payment processing and completion. Again, payment solutions for the digital age are designed for seamless connectivity between different applications. This can shorten the time needed to complete transactions that go through circuitous processes, and it also ensures that customers are able to enjoy quick and convenient experiences.

 

Gain Better Insight Into Transactions

Another advantage of switching to a digital payment solution is that this option provides better insight. Digital payment solutions can provide modern midsize banks with the data they need to optimize their payment processes, and they can also be a tool for collecting information about the clients that your bank works with. This, in turn, makes it much easier for your financial organization to collect and compile customer data and provide personalized services that suit the needs of your corporate and retail clients.

 

Fuel Innovation in Your Financial Institution

A financial organization that employs a digital payment system is able to free up plenty of resources from traditionally time- and energy-consuming processes. By upgrading your payment tech stack, your midsize bank will have access to tools that will optimize your processes and ease the load on your staff members, all without experiencing any lags in the payment processing time or dropping the quality of the customer service that your bank provides. This gives your company the time and space it needs to focus on innovation and the design of financial products and services that anticipate the needs of your clients.

The digital revolution is in full swing in the financial sector, and it’s a movement that your midsize bank should not miss. Consider your organization’s options today and see why banks of all sizes are making every effort to upgrade their banking systems to meet the standards of the digital age.