Business and Finance
Business and Finance
Modernizing Legacy Systems to Drive Innovation in FSI
06.26.17

Unlike the newer, non-traditional players within the FSI sector, major companies struggle to innovate and modernize their products and services, largely due to the complexity and inertia generated by their legacy systems.

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Given that many of these organisations have systems that were developed in the 1970s and 1980s, their in-house IT applications and infrastructure have been patch-worked together over the decades – layer upon layer – for added functionality. This setup makes it difficult to upgrade and programme various applications, and ultimately, limits the organisation’s ability to evolve as quickly and effectively in today’s business environment.

 

While it is not unusual for a FSI organisation to have around 9000 – 10,000 different applications – and in the case of a large banks it might be even higher –  when it comes to modernising these applications, it can lead to downtime which would be unacceptable for customers and stakeholders. Also, finding developers who can work with archaic programming languages can be difficult too. To get around this, FSI organisations need to look at how they can develop a platform and test the integration process of these legacy applications, to get them working with the increasing number of cloud native applications which are being used in the industry.

 

One large bank in the US came to us with a problem saying that any change in their applications typically took about six and a half months to develop and launch. So we initiated the integration of an open API with a range of their legacy applications using Juniper OpenLab, as well as some other open source tools. This took approximately three months to test and integrate everything, but at the end of the process, the bank now had the capability to roll out application changes or even launch entirely new applications in 14 days flat. That’s a major competitive advantage in terms of reduced cost, reduced risk and of course, greatly reduced time to market.

 

Having this underlying platform, facilitated by Juniper OpenLab, provides customers with complete openness, flexibility and agility, allowing them to integrate their applications with the backend. That’s the biggest benefit we hear back from customers once we have completed a digital or automation journey with them.

 

This is part 3 of a 3 part series about innovation in the FSI sector. To learn more about the latest innovative technology and services in FSI, don’t miss our earlier articles originally featured on CIO Asia about Asia’s Most Innovative FSI Services and Best Practices Implementing Cutting Edge Tech in FSI.

 

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