Michael Haney describes himself as a “reformed banker”. As Head of Product Strategy in the Banking Provider Composite Galileo Financial Technologies, he has a unique perspective on modernizing payments and painting a vibrant view of modern consumer expectations that some banking executives ignore at their risk.
“We are increasingly living in this world where we expect things to happen immediately, or not? We push a button and has a movie on my TV screen, or my goods are delivered within the hour,” Haney said, detailing this immediate immediate Netflix reception that represents a basic challenge for traditional bank architecture but not to provide. business to survive.
Financial institutions are acknowledging that technology strategy and business strategy can no longer be shared. In a discussion on the latest panel with Pymns, Haney discussed the issue with Dan Williams, a senior vice president of banks embedded in Keybank.
“When you realize how widespread technology is in consumer choice and how they make payments, how they choose things, you understand that your technology strategy and your business strategy are extremely intertwined,” Williams said during a wide discussion on banking modernization. Haney echoed this view, stressing that banks face the client’s evolutionary expectations. Adding his comments about the “now” world, Haney noted that local digital generations did not increase with physical money, checks or days waiting to process payments. They wait for financial transactions to occur with the same immediately as their entertainment services.
This integration of technology and business strategy requires banks to think differently about their infrastructure. “When I think about how easy it is to do business with Keybank, in essence, I’m talking about our payment services and applications where our customers want to consume them,” Williams said. “And are they essentially interactions with those points of consumption when they want to do it.”
External pressures Transforming direction
Accelerating technological change has created significant external pressure on financial institutions. Williams emphasized the changing distribution of financial services as a chief leader. “Many times when we think about our distribution of payment products, deposit products, you are still seeing them intertwined with the technology our customers use,” he said.
Haney identified the three critical customer expectations for banking reshaping: real -time processing, mirrors directed from mixed data and financial services. “We are leaving this world where there are financial services in these silos,” he said. “They want to mix the best of all this.” He noted that characteristics like early salary access and buy now, pay subsequent skills now have been made expected by commercial customers as well as consumers.
Both executives pointed out that consumers and businesses are increasingly expecting financial services to enter within their daily flows and applications than to require separate interactions with banking channels. For heritage institutions that respond to these challenges, some architectural changes have become essential. Haney described three key components: modern mediator (including API management and event transmission architecture), Cloud infrastructure and a first data-minded building mentality for providing real-time experiences, in the center of the client.
“A large part of the heritage architecture did not have a first data mentality, which makes it very difficult to get the data moving inside and outside,” Haney said. “That is why we see that key data officials arising – especially in large banks – along with data governance, data standards and a general concentration on data.”
Williams emphasized the importance of interaction within the course of business work: “After all everything we do in financial services is essentially part of a wider business flow,” he said. “There is something that happened before the business payment made to decide to originate it. Something something that happens after payment within their business to reconcile it,” he said, stressing that joining financial systems with workflow metades creates cleaner processes that the customers benefit.
Increasing the modernization composed
The discussion on the panel also noted a significant shift away from traditional “RIP and Replace” approaches to modernization. Haney described several approaches, including the “Greenfield” method where banks begin new lines of products or digital side to experiment before dealing with inheritance infrastructure.
For banks not interested in Greenfield’s approaches, Haney recommended “a repetitive and progressive style approach” where institutions “slowly eat away in inheritance infrastructure”. He emphasized the importance of displaying business value within each budgeting cycle: “Long times are the days when we have five-year transformation programs and you do not see the business value to the end,” he said.
Williams reinforced the importance of continuous improvement: “When you think you are able to provide discrete benefits in those functions or experiences … The ultimate impact on the customer’s experience is that you are constantly improving and adjusting.”
When asked about the concept of banking infrastructure in the future, Williams was straightforward: “I think the term” future test “is a little silly. How, what is one thing we do now that it somehow says we do not have to change in the future? Is a keyword that caught, but it is a mistake,” he said. “The most important principle of future test is to put your business in a position where you can improve and adapt over time. All will change; All will continue. Just if I am leading or following those issues. “
Composable bank becomes shares on the table
The conversation ended with perspectives whether the composable bank was moved from strategic advantage to table shares.
“The concept of versatility, the concept of composition, these things we have talked about are undoubtedly a table actions,” Haney said, though he asked if fintechs represent true existential threats given the regulatory advantages that traditional banks keep.
Williams added that the industry often exaggerates Bank-Anti-Fintech narrative, at a time when fintechs are redefining their identity and business model. Despite those relationships, both leaders turned the conversation back into execution.
“We have a ton of amazing relationships with fintechs,” Williams said. “They can be clients we empower, they can be distribution channels, or they may have the technology with which we add our essential services. This is not a strategic problem;