New alliance will help banks chart path to core and digital transformation
NEW YORK, Oct. 31, 2019 — Deloitte Digital and Finxact, an emerging leader in Core-as-a-Service banking, today announced a strategic alliance to help banks imagine, deliver and run the next generation of digital banking products and experiences.
The alliance will combine Deloitte Digital’s financial services experience and systems integration capabilities with Finxact’s next-generation core banking platform. The Finxact and Deloitte enabled platform will allow banks to co-create goal-oriented, behavioral banking products that deliver modern banking experiences to digital native customers and compete with the nimblest of digital banking players.
Established banks are being fundamentally challenged to respond to the digital transformation wave that has taken the industry by storm, in part due to a growing contingent of global consumers who prefer personalized digital banking experiences, including a href=”https://www2.deloitte.com/us/en/insights/industry/financial-services/digital-transformation-in-banking-global-customer-survey.html” target=”_blank” rel=”noopener noreferrer”>28% who exclusively use online and mobile channels. Yet many banks do not have the operational flexibility to rapidly and consistently deliver products to the market, placing them at a disadvantage to challenger banks (digital native entrants) and neo banks (digital, or mobile-only banks) that operate unencumbered by the constraints of legacy business models and core systems.
“The weight of legacy business models and core systems have banks stuck in a competitive rut, and CXOs are eager for a transformative way out,” said Gys Hyman, U.S. digital banking lead and principal, Deloitte Consulting LLP. “Addressing these issues is at the heart of Deloitte’s alliance with Finxact. We are combining our innovation, digital design and systems integration capabilities with Finxact’s next generation core banking platform in order to help banks differentiate at product and cost levels. It also enables banks to reimagine their operating models to compete nimbly and enter new markets.”
Deloitte’s practice includes several early stage clients and 30 trained professionals across a range of disciplines within its Finxact’s Center of Excellence, which launches alongside the alliance. The Deloitte Digital team has spent the past few years working with leading fintechs such as Finxact to design and power Deloitte’s DigiBank Platform. The platform enables behavioral banking products and features by adopting an event-based, real-time architecture powered by Finxact’s next-generation cloud native core platform and a robust fintech ecosystem. The alliance will help banks to shed the product-as-a-commodity model by enabling them to differentiate on price and experience, modernize their cores to increase efficiencies and reduce costs. It can also help banks to accelerate M&A transactions by building an agile core ready for post-merger integrations, and rapidly prototype and launch new products in-market alongside existing operations.
“Much of the innovation happening in the industry to date has focused on customer experiences, not the production systems,” said Frank Sanchez, Finxact’s CEO. “If banks don’t address the core platforms on the backend, it will be very difficult for them to innovate, adapt quickly to increasing customer expectations, and shape the future of the industry. Together with Deloitte Digital, we hope to solve this dilemma by working with banks as a co-creator — not a vendor — to help them ideate, innovate and transform at a pace that hasn’t been possible before now.”
The Deloitte Digital team has an award-winning record of building solutions for the world’s leading banks and will continue to incubate and launch other new product possibilities through the Finxact alliance that will help place its financial institution clients at the leading edge of the industry.
Visit Deloitte Digital’s website for more information on the Finxact alliance.
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Finxact is innovating the first enterprise class cloud-native Core-as-a-Service platform with a 100 percent accessible open banking API. Finxact’s modern architecture enables banks to rapidly deliver new experiences by creating products on demand and integrating new services as needed. The Finxact team has been at the forefront of banking software for 35+ years, and together with its best of breed partners is disrupting core banking so financial institutions can truly transform on their terms. Learn more at www.Finxact.com.
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