The Future of Modern Finance: A Comprehensive Overview

The financial industry is transforming significantly, driven by technological advancements and evolving customer expectations. The core banking platform is at the heart of this evolution, surrounded by a complex ecosystem of functionalities and integrations. Here's a comprehensive look at the future of modern finance and the key components shaping it.

Level 1. Core Banking at the Center

Core Banking Platforms: The core banking platform serves as the foundational infrastructure for modern financial services. Companies like Mambu and Thought Machine are leading the way, providing robust and flexible solutions that enable banks to offer innovative products and services. These platforms are essential for supporting the myriad of functions and integrations required in today's dynamic financial landscape.

Level 2. Surrounding Functional Areas

Accounts & Loans: Modern finance includes sophisticated functions like credit scoring, credit rating, and loan origination. Industry giants such as Experian, Equifax, and Provenir play a crucial role in these areas, helping banks assess creditworthiness and manage lending processes effectively.

Payment & Cards: Payment processing and card issuance are critical components of the financial ecosystem. Major players like VISA, Mastercard, and Stripe facilitate seamless transactions, ensuring that customers can make and receive payments efficiently.

Customer Management: Effective customer relationship management (CRM) is vital for retaining and growing the customer base. Tools for customer onboarding and data management, supported by Salesforce, Adobe Analytics, and Microsoft Dynamics 365, enable banks to provide personalized and responsive services.

Risks & Regulation: Compliance, fraud detection, and risk management are more important than ever. Companies like ComplyAdvantage, Onfido, and Jumio offer solutions to help banks navigate regulatory requirements and protect against financial crimes.

Level 3. Integration and Interfaces

Integration: Financial services are increasingly integrated with various platforms and APIs to streamline processes and enhance functionality. Partnerships with companies like PayPal, Marqeta, and Thredd enable banks to expand their service offerings and improve operational efficiency.

Authorization: Secure and compliant authorization processes are essential for protecting customer data and transactions. Companies such as ComplyAdvantage and Flexys provide advanced authorization solutions that ensure security and compliance.

Level 4. Channels of Interaction

Employee Channels: Tools and platforms that facilitate employee interactions and operations are crucial for internal efficiency. Companies like Builder.ai and Backbase provide solutions that empower employees to deliver better services.

Mobile App: Mobile banking applications are central to modern financial services, offering customers convenient access to their accounts and banking services anytime, anywhere.

Web: Web-based services and platforms are essential for providing accessible banking services to both customers and employees.

Contact Centre: Integration with contact centers helps manage customer inquiries and provides support, enhancing overall customer satisfaction.

Level 5. Orchestration Layer

Orchestration: The orchestration layer encompasses the coordination of various banking functions and integration points. It ensures the seamless operation and delivery of financial services, making sure that all components work together harmoniously.

Level 6. Emerging Technologies

Data and Analytics: Advanced analytics and data management are vital for modern financial services. They enable better decision-making and personalized customer experiences, helping banks stay competitive in a data-driven world.

Open Banking: Open banking frameworks and APIs facilitate third-party integrations and enhanced financial services. They enable banks to collaborate with fintech companies and offer a wider range of services.

Fraud Prevention and Compliance: Fraud prevention and compliance are critical areas in modern finance. Companies like Onfido and Jumio provide ID verification and compliance solutions, helping banks protect against fraud and meet regulatory requirements.

(Source: Zuehlke)