Modernizing legacy tech: building platforms that grow with your bank
Many banks and credit unions still rely on legacy platforms that once delivered stability but now hold them back. These systems haven’t kept pace with customer and member expectations, offering only browser-based experiences, outdated customer journeys, and little to no innovation. The cost of maintaining them continues to rise while the value they deliver continues to fall.
by Feyi Alufohai
Why is it important to look at all your options?
Legacy platforms often suffer from outdated front ends, vendor lock-in, limited or no mobile apps, and slow or fragile integrations. These hold growth back and increase overhead costs.
By adopting a platform that supports progressive modernization (headless architecture, incremental upgrades) you reduce risk, avoid big-bang failures, and retain continuity for customers and operations.
Future-ready technology partners integrate speed and simplicity, with plug-and-play connectors, standardized APIs, and expanding fintech marketplaces. This makes it easier to connect core systems, CRMs, and third-party fintechs without the cost and complexity of custom builds.
Episode 5 of 'Banking Reinvented' explores how banks can progressively modernize their legacy tech.
Tim Rutten and Jouk Pleiter discuss three key banking modernization strategies: the segment-based, journey-based, and headless approaches to updating banking systems. They highlight the importance of having a clear business case and ROI for modernization efforts.
Tune in to find out which approach best suits your bank and to discover practical steps for implementing these strategies.
Want more insights into the future of banking? Check out our content hub for impactful podcasts, blogs, and whitepapers.
Comparison: Legacy platforms vs. Backbase
Here’s how legacy technology stacks compare to the capabilities of modern digital platforms
How can banking leaders make the change?
If I were advising a bank or credit union evaluating legacy platforms vs modern alternatives, here are the steps I’d recommend:
Audit what’s working now: Where are your biggest bottlenecks, (e.g., mobile support, integrations, UX, or product launches)?
Map the journey vs destination: Identify small, high-impact modernization moves (e.g. mobile app, onboarding, integrations) rather than trying to replace everything all at once.
Choose a platform with modular, open architecture: One that lets you plug in fintechs, build or customize as needed, and scale without redoing foundational pieces.
Prioritize customer & employee experience: Modernization should free up resources to focus on what matters for end users.
Modernization isn’t a sprint — it’s a marathon. And to keep up with emerging technologies and ever-rising customer expectations, you’ll need to embrace a continuous, cyclic, instrumental approach, one that will help you steadily modernize while becoming leaner and more agile. In this whitepaper, you’ll get all the details about progressive modernization and learn how it will empower your bank to become truly future-proof and pull off a rapid, comprehensive digital transformation.
What’s in it for you?
Enhance operational efficiency
Streamline your banking processes
Deliver a seamless customer experience
