NAVIGATING YOUR LEGACY SYSTEM UPGRADE Your Guide to a Successful Technology Migration
Maintaining legacy decisioning systems is a challenge. A lack of support from current vendors, evolving compliance regulations, increased competition, and a need for digital transformation can all mean that the time has come to upgrade your outdated legacy technology. But upgrading can be overwhelming, and poses its own challenges, especially as you decouple your decisioning technology from other systems and integrations. Support and Maintenance:
SO WHAT DO YOU NEED TO CONSIDER WHEN IT’S TIME TO MOVE?
Relying on obsolete technology, particularly when it is no longer receiving regular updates or technical support, results in operational inefficiencies. Delays in updates, support query responses, and modifications to process workflows are all indicative of an excessive time and effort wastage. Ensure new technology solutions include 24/7 technical assistance, regular updates, and proactive maintenance from a dedicated team of experts to maintain uninterrupted service.
91%
of organizations indicated that a one-hour outage of mission-critical server hardware and applications results in an average financial loss of $300,000. Source
Implementation Approach: The disruption to ongoing operations can be minimized by implementing a phased strategy, which includes a pilot phase, integration testing, and step-by-step rollouts across various departments and functions. Guarantee that your technology partner is capable of customizing options and offering a consultative approach that is tailored to your unique requirements and objectives.
Experience with Migration and Digital Transformation: Obtain concrete examples of previous successful migrations, particularly with other large, complex financial institutions, that highlight challenges faced and how they were overcome. Be sure your new solutions come with a dedicated team of specialists who have specific expertise in complex digital transformations and can handle the intricacies of large-scale migrations.
45%
of companies experience data loss during a software migration. Source
Speed-to-Market: Be sure to discuss rapid deployment capabilities that do not sacrifice quality or security/compliance. Agile methodologies and advanced deployment technologies, as well as an expert professional services team can get your new systems/ processes up and running quickly, ensuring minimal disruption and downtime, and the ability to benefit from improved decisioning capabilities as quickly as possible.
55% Only
of products are launched on schedule. Source
Total Cost of Ownership: Look carefully at cost elements involved in migration, including initial capital expenses, ongoing operational costs, and human capital. Compare those costs with potential ROI and savings from improved decisioning, including cost reductions due to increased efficiency, reduced downtime, and lower maintenance/support expenses.
?
WHAT DOES IT REALLY COST? System Replacement: Maintaining an obsolete system can eventually exceed the cost of upgrading Security: Security deficits in legacy systems leave you more vulnerable to data breaches and cyber-attacks Skill and Training: Expensive and time-consuming specialized training may be required to keep up with legacy systems Maintenance: Costly ongoing maintenance is often required to ensure legacy systems remain operational (including specialized personnel, and regularly upgrading pieces of hardware/software) Integration: Ensuring appropriate integration between legacy systems and new technologies can be complex and expensive
Integrations: Your existing IT infrastructure and other integrated systems (data, loan origination, collections management) may be complex, so ensure any new systems can integrate seamlessly with legacy technology as well as newer applications. Be sure there’s a flexible integration architecture that includes APIs, middleware solutions, and custom adapters designed to ensure seamless data flows and functionality across all systems.
36%
of respondents said legacy systems are one of the most substantial obstacles to integrating real-time analytics, and 1/3 said data silos hindered their expansion. Source: Harvard Business Review, Real-Time Analytics Survey
Compliance and Security:
83%
of risk and compliance professionals said that keeping their organization compliant was a very important or absolutely essential component to their decision-making process. Source
REGULATORY COMPLIANCE
DATA PRIVACY & SECURITY
MODEL RISK MANAGEMENT
New technology must comply with all relevant laws and regulations (DoddFrank Act in the U.S., GDPR in the EU, etc.). This includes regulations related to credit scoring, data protection, and antimoney laundering.
Dealing with customer data means you must comply with data protection laws like GDPR, CCPA, etc. Decisioning tech must be able to securely handle and store sensitive personal and financial data, protect against data breaches, and ensure customer privacy.
Financial institutions have to manage the risk associated with the use of statistical models in decisionmaking. This includes ensuring the accuracy, validity, and performance of your models over time, and compliance with guidelines like SR 11-7 in the U.S.
VENDOR RISK MANAGEMENT
OPERATIONAL INTEGRATION AND COMPLIANCE
CROSS-BORDER COMPLIANCE
Ensure that any risks associated with thirdparty vendors are managed, including their compliance with industry regulations, their financial stability/backing, their market presence (operation within the local market), and the reliability of their service and support ecosystem.
If you operate internationally, the technology must comply with the laws and regulations of all jurisdictions in which you operate, which can be complex and varied.
New technology must integrate seamlessly with your existing systems while adhering to your operational compliance requirements. This includes compatibility with legacy systems, and adherence to internal policies and procedures.
Continuous Innovation: The cost of not migrating will ultimately be more than digital transformation and upgrading legacy systems. Staying ahead in the rapidly changing, highly competitive financial services industry requires continuous innovation, flexibility and adaptability, and ongoing research and development efforts that ensure you benefit from the latest advancements in AI, data, and more.
$550B
Publicly traded fintechs, often seen as flexible and innovative, represented a market capitalization of $550 billion last year, a two times increase since 2019. Source
BENEFITS OF MIGRATION
Lower total cost of ownership
Faster speed-tomarket
Enhanced compliance and security
Enriched customer experience
Better data-driven insights
Improved operational and cost efficiency
Scalability and flexibility
Enhanced decisioning speed and accuracy
Choosing to upgrade your decisioning technology is not merely a tactical IT decision; it is a strategic necessity that allows you to continue to compete effectively in a more crowded market. The key to a successful transition lies in partnering with the right technology provider - one that not only offers advanced, automated decisioning solutions, but also brings you a depth and breadth of expertise in the industry, and in successful migrations. Provenir has been a trusted decisioning technology partner to leading global financial services organizations for twenty years, with a robust, experienced professional services team ready to ensure your successful digital transformation. Because it’s never just a plug-and-play decision - at Provenir, we look at your needs holistically, offering you an end-to-end platform and years of expertise to help you power intelligent digital financial services across the entire customer journey.
PROVENIR'S AI-POWERED DECISIONING PLATFORM Intelligent decisioning solutions for financial services providers
A
SE
M
A
N
E AG
DA T
CA
ME
NT
DECISIONING
DE
CIS
IO N I NTELLI G E
E C N
See why choosing Provenir is the easiest risk decision you can make. Contact us to learn more about our migration capabilities. Contact Us