How Modularity Delivers Fintech Innovation Without a Total IT Makeover

How Modularity Delivers Fintech Innovation Without a Total IT Makeover

Jan  26 
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Kobi Magnezi  Director, Product Strategy, Digital Channels, Fiserv 

Financial institutions are in a constant race to deliver financial services that match consumers' expectations for faster, more seamless digital experiences.  Delivering such innovation in today's environment of new digital-savvy competitors, evolving banking channels and emerging technologies is pushing a constant need for product innovation and technology innovation. That new environment calls for a more agile and sustainable approach to IT strategy: It's called modularity.

The best way to understand modularity is to visualize building blocks. Modularity begins with a base platform designed to easily accommodate new features, each of which is delivered via a module (or block) that connects to the original platform. New features can be added without changing the underlying technology framework.

As needs change, modules can be added or removed, giving financial institutions the flexibility to evolve products and services to match market or consumer demand. Modules are not add-ons; rather they're integral parts of the product platform that make the delivery of new capabilities appear seamless to the user.

The Modularity Advantage

A modular approach to financial services delivery offers multiple advantages for institutions of all sizes.

Modularity breeds flexibility. With modular architecture, change can be as straightforward as adding or removing a module. Modular architecture should be customizable and scalable to adapt to market or institutional needs. And, when modular architecture is channel and technology agnostic, institutions aren't bound by a particular mobile device or software platform when changes need to be made.

Modularity can speed up time to market. Modular architecture enables institutions to remain ahead of the technology curve. New capabilities, features or functionality can be rolled out in a fraction of the time it would take to upgrade to an entirely new platform.

Modularity can drive higher return on investment. Platform technology is a major investment and a long-term commitment. With modularity, an institution can add new capabilities without reinventing the makeup of its platform each time. And, as new needs arise, the institution can simply integrate new modules into the mix without disrupting the existing environment. That extends the life of the investment because the platform and services can evolve to meet market shifts.

Pushing the Boundaries of Digital Delivery

A modular approach to technology can help institutions meet lofty market expectations, particularly with tech-savvy millennials. Companies such as Google, Apple, Microsoft and Salesforce – and even startup communities and developers – are taking modular architecture to new heights and pushing boundaries like never before. It's time for financial institutions to push those same boundaries.

Modular architecture can fundamentally transform the way institutions approach technology, enabling expansion without a complete technology overhaul. Modularity offers much-needed flexibility and innovation as an all-encompassing approach. It addresses both the technology aspect and the market-driven business need. And for consumers, modularity delivers new products and services just in time and right in step with the way they live and work today.

To learn more about modularity, watch the video below or read Taking on Digital Disruption, a Fiserv Point of View paper.