What makes a Digital Banking platform great for future changes

Today, fintech firms and digital banks have become major disruptors of banking services and have transformed the traditional way of banking and payments that have been practised for years. Naming the most popular ones like digital, neo or challenger banks, everyone understands that they have brought new ideas and elevated customer experience in this stage.

But what is behind the scene? What are the main functionalities of the technology, which supports the continuous growth of digital banks and other fintechs?

In this article, I will browse through the main technological aspects that support fintech companies’ growth.

Driven by microservices infrastructure

Business expansion or continuous change are directly correlated with the microservice infrastructure. Microservices are at the very centre of the modern Core Banking platforms. It helps to customise the technology or add new functionalities faster and easier than using standard banking architecture. Such upgrades wouldn’t be possible with monolithic core banking systems, but this setup is created in a way that solutions are independent of each other and support ongoing changes. As a result, it cuts down resources and costs of developments and enables digital banks to be always up to date with current market trends. Basically, using this architecture, banks can establish a small business that supports basic operations and expand little by little adding new solutions and business partners.

Adapted to business logic

Flexibility in terms of solutions and additional integrations is just one side of the system. When it comes to operators, the system should also be flexible enough to provide them with new technologies, solutions, and integrations. For example, digital banks must be able to adapt their business logics, as the industry is evolving fast across different dimensions, e.g., functionality, business and technologies.

Most business processes demand regular upgrades because of new business needs, regulations and market trends. This is where flexibility, along with the workflow of how the business runs processes are essential to make changes — fast and efficiently.

At this point, all business processes must be easily managed in the back-office. It is something different from what monolithic systems offer. Adding or removing steps and scenarios must be easy to understand and execute, making it possible with one click. Such functionalities are called business workflow editors, also known as visual business workflow editors. On top of that, the reporting system should have the same customisation functionality.

Prepared for Open Banking

Another supportive functionality of the Digital Banking solution is the readiness for Open banking. In the open banking world, plug-and-play financial products are mainstream, and customers have the final word when they opt for a superior banking experience.

For fintech, open Banking opportunities are numerous. Equipped with open API, digital banks can offer new, value-adding services with the help of other third-party providers and banks and monetise these connections.