Why banks should switch to modern issuer systems

How can banks and financial services firms meet regulatory requirements, but also remain competitive with innovations and attractive product portfolios? Can new regulations even drive innovation? The answer lies in the right combination of new processes and the use of advanced technology

The clock is ticking for banks still figuring out how to enter digital assets. In my view, there are really only two paths: 1️⃣ 𝗚𝗼 𝘄𝗶𝘁𝗵 𝗮𝗻 "𝗢𝗻𝗲-𝗦𝘁𝗼𝗽-𝗦𝗵𝗼𝗽" Many infrastructure providers offer bundled solutions for core services like trading, staking, custody, and compliance. This is often the better choice for institutions that prioritize: • convenience • (perceivably) faster time-to-market • less operational complexity • and have limited resources available for tech, process planning, and ops It also suits institutions that: • don’t yet have a defined vision for expanding their digital asset offerings beyond these basic services • are under GTM pressure and just need to be live ASAP • have limited resources for tech, process planning, and ops But – with that convenience come trade-offs. Bundled offerings usually come with: • higher fees on trading and custody • less revenues on staking • and limitations when it comes to scaling up operations Why? Because providers must split their limited resources across multiple products and clients, while also relying on strict governance – leaving them with less flexibility to cater to clients’ specific needs. 2️⃣ 𝗚𝗼 𝗺𝗼𝗱𝘂𝗹𝗮𝗿 Institutions with a clear vision for monetizing the new, digital economy – beyond trading and custody toward issuance, tokenized MMFs, or real-world assets (RWAs) – benefit significantly from a modular approach. This means selecting highly specialized category leaders for each part of the stack. Although it requires more planning, it offers significantly greater control over the offering and establishes the strongest foundation to “do everything right” from the start. Plus, it helps avoid yet another costly infrastructure-swap project in a few years. We believe this allows institutions to scale much more effectively over the next 5–10 years. Why? Because specialization means providers can focus all resources on delivering best-in-class services in their respective area. That’s also why we at tradias are laser-focused on one thing: being the premier, most reliable, and fully regulated principal desk for digital asset spot trading.

Whatfix has launched its #GenAI-powered #Digital Adoption Suite, helping banks, insurers, and #fintechs accelerate user #adoption and compliance. 💡 Key impacts: ✅ 84% faster onboarding & training ✅ $1M annual cost savings ✅ 10× ROI & 50% boost in productivity ✅ 45–60% fewer support tickets From #AML & KYC #workflows to ISO 20022 compliance, Whatfix is enabling #financial institutions to #modernize confidently while enhancing user experience. #FinTech #GenAI #DigitalTransformation #FinancialServices #Innovation https://lnkd.in/gNP5mK6S

The biggest myth in banking technology: “We’ll replace our legacy system in two years.” Banks often tell themselves this, but the reality is usually very different. In practice, these timelines are often too optimistic. By the time the replacement is ready, the business environment has already moved on, leaving banks stuck in another cycle of catching up. Major replacement projects are also heavy on resources, highly complex and notoriously prone to overruns. When institutions try to do everything in-house, the risks multiply and innovation grinds to a halt while teams wait for the “big switch.” That is why we take a different approach with clients. Instead of ripping out the legacy system, we “upgrade” it by overlaying our software on top. This allows for smart automation and process orchestration while keeping the existing core stable. It means banks can unlock agility without the risk and disruption of starting from scratch. Do you believe in big-bang replacements, or do you see incremental transformation as the smarter path?

Most people think document processing is just about digitizing paper. They're missing the bigger picture. Banking compliance isn't just about ticking regulatory boxes. It's about transforming how financial institutions handle risk while accelerating operations. At Citi, Issuer Services, I've seen firsthand how Intelligent Document Processing can reshape the entire #Compliance landscape. Traditional approaches create bottlenecks. Manual reviews drain resources. Human errors compound exponentially. The game changes when you implement smart document workflows alongside Zero Trust Architecture. Data flows seamlessly between institutions like World Bank and Euroclear. Transparency increases dramatically. Operational friction disappears and same group of folks involved can deliver more and use their time optimally Here's what really moves the needle: • Cloud-native architectures that scale instantly with regulatory demands • Automation that reduces deployment cycles from weeks to days • DevSecOps practices that embed compliance into every system layer The results speak volumes. Technical debt shrinks. Global operations run smoother. Compliance becomes a competitive advantage rather than a cost center. More from an Baking operations standpoint, Risk is reduced. Banking leaders who embrace this shift will define the next decade of financial services. Those who don't will watch from the sidelines. What's your experience with intelligent automation in compliance? Are you seeing similar transformation patterns in your organization? 🏦

Most banks aren't choosing between legacy systems and digital experiences—they're choosing which one to compromise on. It's a familiar dilemma: new tech can offer sleek front ends, but often breaks the backend. Or, backend integration is rock-solid, but the customer interface feels like 1999. And for many financial institutions, that's the status quo. But what happens when you stop accepting that trade-off? This conversation sheds light on the growing need for banks to stop retrofitting and start rethinking. The real issue isn't just outdated technology—it's the accumulated "process debt" built around it. Years of workarounds become permanent workflows. Teams are stuck doing manual tasks they don't even question anymore. That's not just inefficient—it's dangerous. Forward-thinking banks are flipping that model. They're asking: How do we rebuild around flexibility, real-time data access, and automation, without losing compliance or control? The answer starts with acknowledging the problem. Then, building with intention—one system at a time.

If you are embarking on a transformation but have a nagging doubt that 'there must be a better way' - then this read is for you 👇 - a super helpful summary from the very experienced Hamish Rumbold of where things go wrong and how you can protect against common pitfalls. His key piece of advice 👉 "Beware of modern solutions that repeat old mistakes" i.e. platforms that: - Create hidden (and expensive) dependencies on third-parties. - Risk long-term vendor lock-in and one way doors. - Defer the harder challenges (migration anyone?), leaving you with two platforms and two teams to manage >> $$$. - End up being 'just another tech stack', leaving you to play a game of whack-a-mole with processes and (worse) controls that just don't fit anymore. Instead? ✅ Solve for the whole problem, including the back-book. ✅ Be strong enough to challenge established norms - consider your resource allocation, truly understand what will differentiate you (now and into the future!), be realistic about where your sector is heading and willing to make some big bets. ✅ Choose platforms built with customer experience, automated processes, security and compliance - all by design. Hamish's challenge to boards? Ask the tough questions early - ❓ Are we solving the right problems - not just the easy ones? ❓ Will this programme deliver us transformative outcomes or just inflate our tech opex line? ❓ Is our partner 100% accountable, with skin in the game and a neck on the line? Thanks for the share Hamish Rumbold. A nice nudge as to why Constantinople is a good option for bank transformations but also a great read for any company outside of the banking sector staring into a similar programme of work. What other questions should boards be asking? Keen to hear in comments!

From day one at Capacity, we’ve partnered with banks and financial institutions looking to streamline operations while keeping security and compliance top of mind. Automation in this space has to meet a higher bar, one where efficiency doesn’t come at the cost of risk. Here’s where most platforms fall short: 🔒 Security is bolted on, not built in 📜 Compliance becomes a blocker instead of an enabler ⚙️ Automation tools aren’t flexible enough for real-world banking workflows Our stance at Capacity? You shouldn’t have to choose between speed and security. We’ve built our platform to automate high-impact workflows within the guardrails of bank-grade security and compliance standards. Whether it’s handling customer onboarding, internal support, or data-driven insights, automation should empower your teams without introducing risk. Compliance shouldn’t slow you down. With the right infrastructure, it can actually accelerate transformation. If you’re looking to automate without compromise, I’d be happy to share what we’ve seen work.

When a financial institution invests in a new core banking platform, the focus is often on the “go-live.” But in reality, that’s just the starting line.   The real question is: how much value are you actually getting from your platform once the dust settles?   That’s a conversation I’ve had with countless banks and credit unions over the years. Too many find themselves stuck at the basics, but unable to simplify, standardize, or scale.   At Natech, we’ve developed a 4-step Solution Maturity Model to help institutions assess where they are today, and more importantly, chart a clear path forward.   In my latest blog, I walk through: ✔️ The four levels of maturity every FI should understand ✔️ How existing clients can use the model to scale further ✔️ Why so many institutions are stuck at step one and how to move beyond it   If you’re thinking about transformation or wondering if your technology is delivering what it should, I’d love for you to read the piece and share your thoughts.   👉 https://lnkd.in/gh3akCKw

Banks are no longer just financial institutions — they are turning into technology platforms with a banking license. What’s driving this? 🔹 Composable Banking – core services delivered through APIs, not legacy monoliths. 🔹 AI-first Architecture – predictive models running across credit, fraud, and collections. 🔹 Cloud-native Scalability – resilience and speed without infrastructure bottlenecks. The challenge is not adoption, but integration: how to modernize without breaking compliance, security, or customer trust. Banking transformation is not about adding digital layers — it’s about rewriting banking as code.