Insights

Why Financial Services should be considering Application Modernisation

March 2, 2020, MOQdigital

Financial Services, Digital Transformation, Microsoft, azure

MOQ Campaign Blog - application modernisation for FSI

If you’re a financial services organisation, there are very good odds that the software that runs your business is out of date. 

About 40 percent of banks still use COBOL – a programing language that dates back to 1959 – as the foundation of their backend. Even if you aren’t still tied to an AS/400, it may still be likely that your technology isn’t of recent vintage.

If it takes months – or years – for your organisation to develop new features for its software, if changing even the smallest aspect of your software has ramifications for the whole system, or if your application continually strains under normal workloads, it is time for you to think about a technological refresh.  Here’s how you can benefit.

Recapture the customer experience with more responsive apps

Research from Google shows that over half of mobile website visitors will leave a webpage that takes more than three seconds to load. This datum is especially relevant for financial services organisations, because 81 percent of users now use their phones to manage their money at least nine days out of the month. Is your infrastructure optimised to increase page load times on every device?

Of course, user experience isn’t limited to loading times. Hosting your applications on cloud solutions such as Microsoft Azure won’t just reduce load times and increase responsiveness – it will also provide access to benefits such as personalised user interfaces, machine learning technology, and process automation. Banks that lead on customer experience see increased deposits, so these modernisations could essentially pay for themselves.

Lessen human workloads and decrease errors with automation

How often do you find yourself wishing that a robot could do your job for you? As it happens, large swathes of the financial services workspace – such as checking for fraud, updating records, and processing payments – are ripe for automation. By streamlining manual processes, you don’t just free up your time for more fulfilling tasks, you also reduce the chance for errors. Performing the same rote task for hours on end might strain a human attention span, but software will never falter.

Banks have already begun to realise enduring benefits from automation. The ANZ Bank, for example, was able to achieve a 30 percent annual cost savings by implementing automation. Want this capability for yourself? Microsoft Power Automate offers a robotic process automation feature that lets you record and playback your manual interactions with machines in order to automate them with very little code.

Add Microservices for more resilient apps with faster development processes

Many legacy applications are structured in what’s known as a monolith. In other words, every part of the application is built at the same time, and every piece depends on every other piece. This leads to some problems. For example, an application monolith might contain a login portal – which you might think of as a relatively insignificant part of the overall application – and if the login portal fails, then the entire application becomes inaccessible. What’s more, if you want to tweak the login portal so it fails less often, you’ll have to modify every other part of the app – vastly increasing the development time.

Organisations are increasingly breaking apart their legacy applications by separating them into one or more microservices. These are independent applets that don’t share functional resources with other microservices in an app. That way, one microservice can fail without bringing down the entire application – and you can update and replace a single microservice without having to modify the entire application accordingly. Microservices apps are more resilient, easier to develop, and more cost-effective.

Modern IT infrastructure strategies lower costs and speed time to market  

Technology has a major role in strategic planning not just from the technology owners in the business, but CEO and COO, too. When technological achievements are fully aligned with business goals, the entire company benefits. More and more financial services companies are becoming engaged this way, adopting new technologies that are precisely tailored to engage customers and create efficiencies. Will your company be next?

Move your company forward with MOQdigital

More and more financial services companies are turning to MOQdigital for application modernisation services. When you work with us, you’ll be able to create more responsive, higher-performing applications that meet criteria for security and GRC. Want to learn more? Sign up for our Application Modernisation & Innovation Workshop today!