Despite understanding the value of digital core banking, Southeast Asian banks view digital transformation as high risk, according to the Leveraging Digital Core Banking Systems: Next-Level Banking whitepaper from research firm IDC.
Sponsored by SaaS cloud banking platform Mambu, the report found that many established banks in the region have core banking systems that are more than 20 years old. This prevents them from delivering on the promise of digital transformation without exhausting their financial resources or risking their reputation.
“Banks used to be built to last, but now they need to be built for change. Without embracing digital banking technologies, incumbent banks just won’t be able to compete with digital banks that can offer the hyper-personalised and customer-centric experiences that their customers now expect,” says Myles Bertrand, managing director for APAC at Mambu.