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Core modernization involves the digital transformation of IT applications and infrastructure that results in more agile digital applications and strategies for businesses. As more businesses move to cloud platforms, they are faced with outdated legacy systems that are rapidly becoming obsolete. While they may have performed optimally at one time, without sufficient updates, repurposing them by moving them to the cloud renders them inefficient and outdated. Without core modernization, those organizations who depend on outdated legacy systems risk losing their competitive edge.
Incremental modernization results in a rapid-fire response to ever-evolving technological advancement. When migrating from premise-based systems to the cloud, organizations often benefit from an incremental and continuous approach to modernization. This response helps them maximize the value of their core business systems, while lowering the cost and risk often associated with digital transformation.
Core modernization has the potential to completely transform the financial services industry. Increasingly customers have been foregoing interactions at brick-and-mortar locations to transact in mobile environments in real time, leaving banks vulnerable to regulatory risk tied to these transactions. Yet they continue to rely on decades-old legacy systems rather than step outside of the firewall to meet their customers. Through hybrid integration, connecting these legacy systems to new internal applications, as well as external third parties, allows financial institutions to meet customer demand in the digital space, facilitate regulatory compliance and drive revenue while reducing cost.
The business benefits of core modernization are: