can bridge the gap between the two cores and create a common language by which the new organization can thrive. With a connectivity API solution in place, you don’t have to feel paralyzed by the notion that a single wrong step will lock you into a tech stack you don’t actually want. Instead, you’ll be able to mix and match the solutions that work best for your new team. Because of this, you’ll put your learning to work even if it so happens that you end up with a different tech stack than you initially thought you would. Conclusion: Stalling Is Too Expensive In the past, some of the paralysis around tech projects in the midst of a merger and acquisition was justified. External competition was scarce, financial institutions moved slowly, and there was no way around burdensome contracts that locked companies into tremendous inflexibility. However, the scene has changed. External competition from national banks, credit unions, fintechs, and tech companies is quickly picking up steam, the industry is moving much faster, and technology now allows for a level of flexibility previously unthought of. Bad Timing: By putting new technology and data capabilities on hold, your institution will fall further behind right as the industry picks up speed. As long as you start thinking about how you can integrate your two teams early, find the right partners, and integrate a flexible, API-enabled tech stack, it’s a far better option to keep running and don’t look back. ▪ About MX MX is the leading data platform for the financial world, providing the industry's fastest, most secure, and most reliable connectivity network. MX partners with 16,000+ banks, credit unions, fintechs, and 85% of digital banking providers to power the money experience for over 200 million consumers..
2. Technology Is Changing More Quickly Than Ever When ATMs were first released in the late 1960s, they felt innovative. By the late 1980s, they were table stakes. Likewise, mobile banking felt innovative in the early 2010s, but now it’s table stakes. Now, with the rise of artificial intelligence and machine learning, technological advances are set to happen more quickly, as each new technology makes it easier to create tomorrow’s technology. This means that people are getting more and more used to experiences that are seamless, intuitive and simple. They’re also realizing they can find these experiences outside of a bank or credit union. As the technological aspect of banking gets simpler and more convenient, traditional modes of banking will feel more and more archaic. It used to be a no-brainer that people would go into the branch to do their banking. It was the only option! But today, people are changing their attitude and becoming less willing than ever to entertain the notion that banking has to be done inside of a branch. Given how quickly technology is changing, this situation is bound to speed up, not slow down. 3. Your WorkWon’t Be Wasted (If You Take the Right Approach) It’s understandable that people in banking might be wary about the idea of getting too involved in a tech project only to have the project stymied by a merger or an acquisition. They’ve likely seen it happen before. Wasted effort is not an inevitability, though. A better approach allows flexibility in tech partnerships and contracts — using open finance APIs and adaptable core models that enable financial institutions to pivot far more quickly and seamlessly than they’ve been able to pivot in the past. To get more specific, one way to bypass the friction of new systems during M&A is through the effective connectivity of middleware. By leveraging existing core integrations, a provider such as MX
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THE FINANCIAL BRAND INSIGHTS WINTER 2021
THE FINANCIAL BRAND INSIGHTS WINTER 2021
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