The financial sector is undergoing a seismic shift. Traditional banking systems, plagued by outdated technology, high operational costs, rigid contracts, and limited scalability, hinder digital transformation. To address these challenges, Open Banking Solutions (OBS) offers low code / no code banking, a modern alternative leveraging cloud-native infrastructure and microservices to provide an agile, scalable, and cost-effective approach. This article delves into how this innovative approach is reshaping the bank technology landscape and driving industry-wide progress.

For too long, banks and credit unions have been hamstrung by monolithic core banking system providers for the past 30+ years with their high operational costs, limited scalability, and inflexible architecture. Legacy systems, delivered primarily by three (3) industry software providers, have stifled innovation, and have prevented financial institutions from adapting to market shifts and meeting the evolving expectations of today's digitally savvy customers, especially those in their twenties and thirties.

Low code/ no code banking addresses these challenges by dismantling the core banking system into modular, independent microservices. What does that mean exactly? Well instead of relying on a single, rigid system, banks operate with interconnected services that can be upgraded, replaced, or scaled independently without disrupting critical banking operations. OBS stands at the forefront of this transformation, providing a platform that empowers banks to modernize seamlessly.

OBS’ low code / no code banking solution offers a range of compelling advantages:

• Agility & Speed: The ability to accelerate the launch of new products and services by seamlessly integrating top-tier solutions, thereby avoiding the delays typically caused by traditional system-wide upgrades.

• Scalability: Through modular architecture, banks can scale functionalities based on their needs, optimizing resource use, and reducing infrastructure costs.

• Flexibility: By offering institutions a pathway to unburden themselves from restrictive, long-term vendor contracts, banks and credit unions can now select the most suitable and competitive offering for each banking function, tailoring their banking experience to their specific needs and market dynamics.

• Cost Efficiency: Transitioning to a cloud-powered SaaS solution allows for a reduction in IT infrastructure costs, while still ensuring robust security and compliance.

Cloud-native approaches the drive the No/Low code banking system revolution. OBS leverages Oracle Apex for development of the platform and on the back end the Oracle database for robust data capabilities and reporting and the Oracle Cloud for hosting the application. This provides a secure, scalable, and cost-effective core banking alternative.  

Further, unlike traditional legacy core systems hosted in proprietary data centers, the OBS approach replaces costly hardware and storage and allows for a flexible pay-as-you-go model. OBS prioritizes best practices for data protection and encryption, ensuring security and compliance. With 99.95% uptime and built-in redundancy, our platform guarantees resilience and reliability, enabling our clients to deploy features in real time without complex integrations and downtime.

Utilizing a low code / no code banking methodology, this empowers financial institutions to take advantage of an API-first model, facilitating integration with over 1,700 fields. This network enriches the banking ecosystem, enhancing customer experience and provides optimal efficiency. The modular architecture approach enables banks to customize their own tech stacks, freeing them from outdated legacy cores. OBS also provides scalable digital banking, digital lending, and payment processing.

In closing, there is an undeniable shift from monolithic legacy systems to composable microservices architectures and this digital disruption that is sweeping all business verticals is now the future of finance and banking. Untethered from the constraints of outdated legacy systems, financial institutions can now achieve unprecedented levels of flexibility, cost savings, and innovation. Transitioning to cloud-based solutions is not merely a technological upgrade; it is a strategic imperative, embrace the revolution and lead the way into a new era of banking with OBS.

Interested in learning more about how OBS can revolutionize your financial institution with agile, scalable, low code / no code banking solutions? Click here to discover the digital banking revolution, boost innovation, and unlock new growth opportunities for your business today.

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