At a glance
Solution category
Enterprise Product and Pricing Management
Geography
Global
Built by
Zafin
The challenge
Customers' financial needs are evolving. In many countries open banking is the de-facto model, quickly moving to an open-economy model where customer lifestyle markers become deeply intertwined with banking propositions and loyalty incentives, which are tailored to enable customers to achieve financial success.
It is imperative that banking products evolve and are tailored to customer needs – from single purpose products to multi-product propositions that include financial and non-financial components geared towards a customer’s goals. Incumbent core systems, or even a single core system, are unable to deliver these capabilities.
Within the current bank environment there are challenges that need to be solved to enable innovation:
- Slow time to market and lack of agility – legacy core systems are difficult to change as they are built using older architectural styles that don’t lend themselves well to change. Enhancements to these core systems require significant planning, lengthy regression testing, and coordination of effort across teams.
- Scarcity of skilled resources – legacy core system skills using older programme languages that these systems were built in are difficult to find..
- High complexity – integration with core systems is complex, requiring specialised skills, and is a large cost driver for most projects.
- Significant operational costs – legacy core platforms are monolithic systems that are far more complex to operate than modern cloud-native core platforms. Achieving high availability, implementing disaster recovery, and reducing failures is an ongoing struggle.
The solution
Zafin and Thought Machine provide a new vision for banks to leap towards creating neo-propositions with real-time execution.
By departing from the decades-old construct of a single core involved in everything from customer, product, interest computation and connectivity to downstream systems (financial, treasury, risk, etc.), Zafin and Thought Machine enable banks to better manage marketed and manufactured products. Our offering is built using modern, cloud-native technology, configurable parameters, and widely used programming languages. This allows banks to create multiple marketable instances of the same product for different types of customers and their unique needs.
This approach improves a bank’s agility and access to skilled technology resources while reducing system complexity and operational costs by running a modern technology stack.
Benefits
Banks can modernise with a cloud-native core platform that delivers:
- Lower operating costs via a cloud native offering
- Accelerated time-to-market of products and product bundles that generate new revenues
- Hyper-personalised offers that keep customers happy and loyal
- Insight into product performance to ensure profitability
More importantly, banks can assemble all products from multiple cores on Zafin, so they can create different products (for example, cards, deposit, loan, insurance, and others) into differentiated propositions
This offering creates the foundation of a modernization journey from the existing core infrastructure to a real-time, cloud-native platform like Thought Machine. As products are consolidated on Zafin, the risk associated with a core infrastructure journey is significantly lower.
How the solution works
Create Personalized Offers for Customers
Using Zafin’s Enterprise Product and Pricing Platform, bank product managers create and price products based upon configurable attributes, such as income, balances, number of banking products held, geographic location, and more. By linking financial and non-financial products together to form new product packages, banks can generate neo-propositions for their customers, and secure new revenue streams all linked to underlying smart contracts.
On demand, event driven data from Vault Core powers insights including, but not limited to, the rate of product adoption, revenue generated by product, and customer acquisition costs. Bank teams can understand if customers are buying targeted offers and if necessary, take immediate action if a launched product is not delivering its value originally anticipated. The speed and flexibility this integration offers allows banks to compete against agile, fintech competitors, while accelerating a core modernization journey.
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