Post Menu and Details.
- Upgrading Your Analytics Software
- Improved Compatibility with Other Applications
- Enhanced and Up-to-Date Security Measures
- Better Scalability and Flexibility
- Final Words
Reading time: ~4 minutes
In recent years, many companies in the financial industry have started looking into replacing their legacy software solutions with more up-to-date versions. These modern systems offer new levels of functionality and usability, providing state-of-the-art security, data management, and data integration functionalities. It’s little wonder why outdated software solutions are on their way out, as they simply cannot compete with the features offered by their newer, more advanced counterparts.
Additionally, holding on to outdated software can put a business at great risk of data losses or cyberattacks, potentially costing organizations billions of dollars in damages. These types of incidents can also greatly damage the reputation of even the most trusted financial institution, and it can take years to bounce back from such an event.
Upgrading Your Analytics Software
That being said, financial institutions have a lot of decisions to make when it comes to improving their analytics software. They can either try to update or modify their existing legacy system or abandon the old system completely for a modernized one. More often than not, the latter case is the much better choice, as trying to force a legacy system to keep up with the times simply isn’t feasible in most cases. By chance, if you keep utilizing or maintaining your legacy systems, it will cause a serious setback to your business in terms of negatively affecting your productivity and sales.
Are you considering the switch for your own financial institution but aren’t sure if it’s worth the upfront investment? Investing in a new risk and finance solution can actually help you streamline your business operations and provide you with plenty of benefits in terms of analytics and data management, giving you access to tools that can help you address risk, make financial reporting more efficient, and drive profitability. Read on to find out what makes modern analytics software so much better than legacy versions.
Improved Compatibility with Other Applications
As more and more business processes are now being coursed through multiple application suites and cloud-based platforms, a new need has emerged: the ability to communicate with other software.
Unfortunately, most legacy systems simply cannot do this, as they are often built on frameworks that were never meant to integrate with newer systems. This, essentially, turns an outdated analytics software into a data silo. This can make it particularly difficult for a company’s various teams to coordinate with each other, especially when it comes to interdepartmental processes. Additionally, legacy systems may not be able to communicate with the kinds of software used by other vendors or partner institutions, which can create all kinds of workflow bottlenecks.
Modern analytics software, on the other hand, is designed to be compatible with a wider variety of applications. This means that they can be integrated with any number of systems you may need for work, and the data that you can export is also more likely to be accepted by other institutions. You’ll be able to enhance data access, and usage across different business concerns, including finance, treasury, compliance, and risk—all because your organization will rely on an integrated data foundation and a single source of truth.
Enhanced and Up-to-Date Security Measures
It’s not just the inability to integrate with new software that makes legacy systems more obsolete by the day. Legacy analytics software tends to be outdated and features many security vulnerabilities, which can lead to long-term stability problems for a company as well as provide an easy target for cybercriminals looking to do harm. To make matters worse, most vendors abandon support for outdated systems, as it simply makes more financial sense for them to put all of their efforts into their newer offerings.
By comparison, modern analytics software comes with a slew of security measures that are designed to protect the system from cyberattacks and data losses. New and improved data encryption features also help to keep sensitive information hidden from prying eyes. This means you can feel confident about sharing information with other institutions or vendors without having to worry about it being compromised in a data breach.
Better Scalability and Flexibility
With a newer analytics solution, you can upgrade your financial reporting capabilities according to the current needs of your organization. By deploying modern financial services analytics software, you’ll be able to enhance your decision-making, maximize your profits, better manage your expenses, develop better forecasting methodologies, and better evaluate sources of risk across enterprise areas like credit, market, and liquidity.
Many older analytics applications were also often considered to be one-and-done deals, in that a single purchase would provide a business a set number of licenses to use and no more. Should they wish to add more users to the software, they may not have the option of buying only as many licenses as they needed. And if they were provided such an option, individual licenses were often more expensive than group or company licenses.
On the other hand, newer software solutions offer scalable licensing options, allowing financial institutions to easily upgrade or downgrade without any downtime whatsoever. As a result, rather than being locked into any set payment plans, businesses will have more flexibility to add or remove licenses as necessary.
Hence, growing companies can expand their workforce without having to spend more than they need to on software. At the same time, any business that undergoes organizational restructuring can quickly scale down to match the new team size without having to pay for licenses that they won’t be using.
There are several reasons you should not think of keeping your legacy system still working for your business. Its maintenance isn’t only costly in terms of finances but typically laborious and time-consuming. And since it’s not up to the current business model, there is no meaning to use such systems at the expense of your business liability.
Switching to modernized analytics software is more than just a practical solution to the technical limitations of a legacy system. Rather than simply being another business expense, this move is an investment in any financial institution’s future.
Thank you for reading!