Successful fintech integration with Two key factor :

Successful fintech integration with Two key factor :

Today we will know about why a technology integration is a criticle enabler for a fintech acquisition.

The banking sector has always been sluggish to modernise. Because of this, integrating a modern tech stack is difficult for the majority of incumbent banks. By definition, fintech companies are built on cutting-edge technology created especially to enhance or automate the supply of financial services. As a result, a fintech's platform and cutting-edge technology are directly related to its essential values.

All of which means that developing the proper tech integration plan will likely be as difficult as it is crucial. According to our observations, a tech integration approach is mostly influenced by two main variables.

When to upgrade fundamental systems :

It is crucial that the acquiring bank thoroughly assesses how well the fintech's tools and processes fit inside the nature, breadth, and complexity of the bank's systems before the acquisition is finalised. Remediation may be expensive or interfere with the integration's planning. The IT organisations tasked with the integration can make effective plans by detecting differences in the tech stacks. Governance, architecture, and delivery techniques are additional factors to take into account for the technology operating model.

Operating procedures regarding the speed at which decisions are approved and contracts are carried out, along with product improvements, are also crucial and may have an impact on value realisation because of their bearing on timeframes and execution efficiency.




The level of cloud migration maturity :

As opposed to ten years ago, the cloud now provides much more than just on-demand compute, storage, and networking. Cloud computing is also a launching pad for innovation and new modes of operation, as Accenture's Cloud Continuum research demonstrates. Understanding this can hasten innovation. The business's shifting needs are supported by the seamless technology and capability basis known as the cloud continuum.

As it can be tricky to negotiate complicated legacy systems, change business and operational models, update architecture, applications, and data, reskill your employees, and adhere to regulations, migration can be challenging and time-consuming. Cyber-risk is another danger. However, management of cyber-security is always getting better, and cloud providers are now considerably better at maintaining hardened security than most businesses can on-premise. However, a lot of businesses continue to worry about lost or hacked data. And they get considerably more delicate when moving customer and employee data to the cloud.