• Mike Salisbury, Director at Quantrix


• 29.01.2018 09:30 am
data

As banks and financial institutions drive to automate processes and ensure tighter integration, they are increasingly diverting their attention away from shiny, attention-grabbing customer-facing products. Instead, they are turning to the critical, but perhaps less glamorous, world of backend services infrastructure. 

The ‘backend’ defines the data and technology repository of everything that makes a bank’s web presence and mobile apps run. In many cases, all the information required to run a system is stored on remote or even cloud-based servers. For larger enterprises, backend systems include a much broader scope of information and systems.

In all cases, backend data is expansive and extremely sensitive – being vital for both companies and their customers. In short, streamlining a bank’s backend systems can make a real difference further down the line. So, what are the benefits of improving backend systems?

Improving efficiency

The ultimate goal of backend systems is to improve access to a company’s data – automating the availability, analysis and insight provided. This could be from sharing information with customers in the best format and on the device they want to consume it on, to providing rich, integrated information to a decision maker based on all available data. Innovating backend systems with scalable, and flexible solutions can help drastically reduce errors and increase the speed at which the bank can deliver to their customers. Both of these improvements can naturally lead to further benefits such as reduction in cost and a greater availability of offerings.

Enhanced decision making

With regards to data, better quality, availability and insight will only drive better decisions. Imagine if you can go to one single place to find all information about an individual or company. The better the quality and availability of that information, the better your ability to make good decisions. When you also add real-time information, things really start to change.

Building for the future

Only after you achieve better integration and availability of data should you think about new technologies such as AI, machine learning or predictive analytics. A flashy new AI-driven application will be useless if your backend systems and data can’t support it. By modernising your infrastructure, and data accessibility you can begin leveraging other technologies and services that may have previously been out of reach.

As customer expectations of their bank continue to rise, the status quo of transactions and financial systems has changed. This has created an exciting environment for those involved in or around the fintech industry. Companies that take the time to invest in their backend services infrastructure will be best positioned to take advantage of any new and exciting developments in the sector.

When looking to make changes to your backend infrastructure, it’s important to consider who your vendors are. This can be an area that is often overlooked, but one that is essential to get right.

What types of customer do they have? How long have they been running for? Are their people honest and trustworthy? Remember, any reputable account manager won’t sell you the wrong piece of technology, no matter how close they are to their sales quota. 

When considering new technology, determining whether the technology will provide a better experience, a solid ROI over time and whether it will put the organisation in a more solid financial position are important things to consider.

Whatever choice you make, the end-result should always be one that gives you better access to your data and allows you to service your customers more efficiently. They may not be glamorous, but backend systems are the backbone of your business.