As informed consumers, we never fail to check the expiry date of medicine, or the use by date of edible items. Also, we fret about organic and inorganic consumer goods lying idle, wasting away, consuming space or creating an environmental hazard through decomposition.
Why are we discussing such things in a banking forum? For good reason, which is that banks too face a constant challenge of obsolescence and expiry. Their IT environment, for instance, is plagued by legacy Core Systems, which become more and more expensive and tiresome to maintain as they age.
Core Banking System selection and implementation is an arduous process. While there is no denying the need for Core Systems modernization, even the latest systems begin to wear and tear over time. Changing regulatory requirements, increasing demand for innovative products, pressing need to lower the Total Cost of Ownership, changing channel preferences, tighter competition and ever-changing technology all conspire to advance the systems’ expiry date. Ignoring this reality or wishing it away would only multiply the issues that will crop up once the systems turn into legacy.
Therefore, it is imperative that banks plan the periodic revision of their Core Banking Systems and other applications, so that their core banking journey remains smooth and fruitful.