Siili Solutions examines digital transformation strategies in banking

In the fourth episode of Siili Solutions' Composable Banking podcast, Mayur Vichare, Director of Strategy and Value Consulting at Backbase, discusses the complexities of digital transformation within the banking sector. The conversation outlines the shift from legacy core overhauls to more agile, journey-based strategies.

Vichare identifies three primary paths for banking modernization: a complete backend overhaul, a parallel system development, or a journey-based transformation. He advocates for the latter, noting that focusing on specific customer journeys—such as onboarding or lending—offers a faster return on investment, typically between two and 2.5 years, compared to longer-term core replacements.

The discussion also addresses the build-versus-buy dilemma, promoting a hybrid approach described as "composable banking." This strategy allows institutions to integrate modular services, avoiding vendor lock-in while maintaining scalability. According to Vichare, success in these initiatives requires aligned KPIs between IT and business departments to ensure technological changes correlate directly with business objectives.

Ultimately, the podcast highlights a broader industry trend toward "invisible banking," where financial services are increasingly embedded directly into non-banking digital platforms.