The eternal debate in financial services technology boils down to build vs. buy, and whether to rip and replace core banking operations. Banks have invested a lot of time and money in those core systems — they have a lot of data there too — and so they are loath to give up legacy tech.
There’s a major problem though, especially as U.S. financial institutions (FIs) gear up for instant payments across FedNow® Service and The Clearing House’s RTP® rails: Their back-end systems simply were not designed to handle the rigors of faster fund flows, real-time balance updates and demands of operating ledgers 24/7/365. It has become an imperative to create a more modern infrastructure to help these FIs make the digital leap into instant payments, and to connect to one another across new payment rails.