Nowadays, more and more banks are shifting to a composable platform and taking advantage of everything that the software has to offer.
Composability can help reduce complexity, increase flexibility, enhance productivity, and increase scalability. Ultimately, the integration of such a platform will lead to the development of additional revenue streams and the lowering of operational costs.
Let’s dive deeper into the topic and find out why financial institutions should try to switch to composable banking software as soon as possible.
What Is Composability?
Composability is, basically, a design principle. It allows new systems to be assembled from multiple independent components.
The main job of composability is to make the user experience a lot easier. When working with composable software, you won’t have to jump between different apps or other separate environments – you will be able to enjoy a singular, fluid work system.
This powerful design principle, of course, has its own unique challenges. Designing such software can be extra difficult. Furthermore, all the composable components have to be compatible with one another.
As composability will inevitably add complexity to the system, managing and testing it might become harder as well.
What Are the Advantages of Composable Software?
The biggest benefits of composable software include:
- Reduced complexity – the design and the implementation of various systems can be simplified thanks to composability.
- Increased flexibility – once the software has been tested and implemented, it would make it easier to update or change the existing systems.
- Increased scalability – composability makes it easier to scale different systems. The possibilities are pretty much limitless.
- Enhanced productivity – mixing workflows into one flow technique will help save plenty of time and money.
The integration of composability allows businesses to become more flexible and agile. Ultimately, this will lead to faster response times and more consistent execution.
As all the resources are brought together into a single interface, such systems are a lot more cost-effective – businesses simply wouldn’t have to spend their resources on managing numerous separate environments.
Finally, all the users will be able to work a lot more effectively as, in a nutshell, composability is about having a seamless experience.
Why Is It Important for Banks to Have Composable Software?
The idea of composable banking arose when the biggest banks started comparing themselves with the most successful B2B companies. Resource planning, supply-chain management, human resources – in the last few years, companies of this kind have managed to create an entire suite of software capabilities that can be accessed through a single platform.
But when it comes to banks, the situation is quite the opposite – dislocated systems, multiple vendors, complex integrations, and so on. Of course, the costs of innovation in the case with banks would be particularly high, that’s why for years the biggest players have been debating whether the costly rewiring is actually worth it or not.
However, the nimbler businesses have already managed to surprise their clients with a better experience and services.
What Are the Benefits of Composable Software for Banks?
- Composable software can help develop additional revenue streams
Such software can assist in extending the bank’s portfolio of the services and products offered.
- Composability results in lower operational costs
Digital-only banks serve customers at around 25% of traditional banks’ costs. This helps not only improve business margins but also opens up new opportunities for development.
- Composable software offers increased scalability
A composable banking platform has a ‘plug and play’ nature, meaning that the business is limited only by the capabilities that are available at the moment.
Why Choose Velmie Banking Software?
Velmie is an all-in-one platform for FinTechs that is trusted by dozens of banks worldwide. It serves over 20 million customers with 99.9% service availability and offers enterprise-grade security and compliance tools.
The software has been designed to take your bank to the next level. With Velmie, you will be able to:
- Remove the hassle associated with account opening and product origination. As a result, you will be getting higher completion and customer satisfaction rates.
- Become the banking app that customers actually find helpful and easy to use. With the software, you will get the full range of digital business banking, starting from payments and transactions and ending with trade financing.
- Become an industry leader. The platform allows the introduction of new offerings and features faster than ever before.
The Velmie platform is fully customizable and highly scalable, and you’ll have easy access to payment services offered by the market-leading companies.
By the way, it will take only a few months to get your MVP up and running.
Composability is definitely the future of banking. Such software opens up new opportunities, enhances productivity, and, ultimately, assists in generating more profit.
A major banking paradigm shift is happening right now, and you really should consider migrating from the old technologies. In fact, the sooner the banks will start implementing the software with the help of such platforms as Velmie, the more benefits they will be able to reap.