How Industry Leaders are Building Banks to Last

Let’s talk about building a bank. It’s an exciting venture, but it’s also a marathon, not a sprint. You want an institution that will stand the test of time, one that can adapt to a changing market while keeping its customers secure and happy.

You wouldn’t lay a bungalow foundation for a 22-storey tower, would you? The same applies to your bank’s infrastructure. You need a strong base to support future growth and unforeseen changes. Here are some hard-won lessons from Felix Ike, Co-founder and Chief Technology Officer of Moniepoint, one of the fastest-growing banks in Africa.

Laying a solid foundation

Think of your infrastructure as the skeleton of your bank. It needs to be secure, scalable, and adaptable. Focus on the essentials first, like building a robust authentication system. Imagine a central server handling logins (like an OAuth2 server) that secures every other service you add later. This way, as you grow, new features can leverage the existing security measures.

The same applies to data integrity. All transactions need to be secure and reliable. Just one glitch here can erode trust faster than you can rebuild it. Remember, the goal is to future-proof your bank, so build with an eye toward what might come next.

Spotting business value in?trends

Trends are like shiny objects?—?they catch your eye, but are they worth holding onto? Focus on those that demonstrably benefit your business. Do your research, experiment cautiously, and ensure the trend aligns with your strategic goals. Remember, the core functions of banking remain fairly constant; new technologies build upon that foundation.

For example, blockchain offers a certain level of immutability for transactions. But if your core banking system already provides that, then blockchain might be more hype than value for you. Similarly, contactless payments might be revolutionary in one region, but commonplace in another. The key is to understand your market and what resonates there.

There are, however, exciting applications of emerging technologies beyond core banking functions. Generative AI, for instance, can personalize your customer experience. Imagine an AI model so knowledgeable about your bank’s offerings that it proactively resolves customer support tickets or reminds users to schedule recurring transactions. Now, that’s business value.

Clearing the big?hurdles

The future is inherently unpredictable. So, how do you build for an unknown tomorrow? The answer lies in a solid foundation. You don’t need every feature available, but you need the capacity to adapt and respond to change. Be nimble, and be willing to change course when necessary. Don’t be afraid to pivot if a new direction presents a better opportunity.

Finding the right talent is difficult but crucial. Look for people with experience building banking infrastructure, not just general technical skills. Invest in your team’s growth through training and specialized programs. Remember, results might not be immediate, but a well-trained team is an invaluable asset to you in the long run.

Encouraging and supporting innovation

Innovation thrives when you create an environment that fosters autonomy. Don’t micromanage or you’ll stifle your team’s creativity. Empower your team to experiment, make decisions, and even make mistakes. The most valuable lessons in our industry come from mistakes.

A team that feels a sense of ownership takes pride in their work. As a founder or manager, your role is to clear the path for them, not control every step. Don’t punish mistakes, but address patterns. If someone keeps repeating the same error, it might indicate a lack of understanding or the wrong role for that person.

The most creative solutions often emerge from a team that feels empowered and takes ownership. Foster that environment, and watch your bank not just survive, but flourish for years to come.

Striking the balance between security and?agility

Security is paramount, especially when building your bank’s infrastructure. There are no shortcuts here. Imagine building an API for money transfers, but skipping authentication to get to market faster. Users are smarter than you think?—?fraudsters will have a field day, and your business may crumble before it even takes off.

Lay the groundwork for security first. It might mean a slightly delayed launch, but that’s far better than a catastrophic breach that ruins your reputation and your customers’ trust. Think of it as an investment?—?the foundation you build today ensures your survival tomorrow.

Once that foundation is secure, you can focus on agility. Streamline your development process. Build automated pipelines that catch issues before launch. If something slips through, have a rapid response plan in place. This keeps your systems flexible and responsive, ready to adapt to changing threats and opportunities.

Building for scalability and adaptability

The world of finance is anything but static. Regulations evolve, customer needs shift, and your business goals will change. The key is to build a system that can grow and adapt with you.

Imagine you create a fantastic banking app, but its architecture is so rigid that any changes require a complete overhaul. That slows you down, frustrates your customers, and puts you behind the competition.

Instead, design your infrastructure for expansion. Build components that can be easily added to, tweaked, and scaled as needed. This keeps you nimble and responsive, ready to face whatever the future throws your way.

Measuring success

In financial services, technology, no matter how sophisticated, serves a single purpose: supporting the business and making your customers happy. In banking, every second counts. Customers expect smooth, fast transactions. So, your infrastructure strategy needs to prioritize speed and reliability. Choosing the right tools, frameworks, and technology stack all hinge on this core principle.

There are some universal metrics to keep an eye on. Track the performance of your services, the quality of your code, and how well your teams are functioning. Tools like the DORA metrics (deployment frequency, change failure rate, mean time to recovery) can be helpful benchmarks. Don’t neglect user experience?—?monitor success rates, error rates, and overall user satisfaction.

These numbers become your compass, guiding you toward improvements in your banking infrastructure.

Building with clarity: Context is?king

You can’t build what you don’t understand. But you can’t know everything upfront either. So, focus on gathering as much context as possible. What are the critical components your bank needs? What regulations must you comply with? What are your customer pain points?

The clearer you are, the better your decisions will be. Identify those essential elements, lay a solid foundation, and then design adaptable systems that can evolve with your business.

The art of the Minimum Viable Product?(MVP)

Don’t try to be everything to everyone at once. Build just enough to get your product or service into the hands of real customers. Real-world feedback is invaluable. It will expose flaws you might have missed, highlight areas for improvement, and ultimately help you create a product that resonates with your target audience.

Don’t build complex systems just because you can. Focus on solving genuine customer problems. Keep it simple, gather feedback, and iterate based on what you learn. That’s how you build a bank that customers love and trust.

Build a financial technology solution with?Digicore

If you’re looking to build a secure and reliable financial technology solution, your first step is to work with a competent FinTech software development company.

Digicore develops customer-centric financial technology solutions that meet ethical and legal guidelines, and help financial institutions achieve their key business objectives. If you are looking to build a gamified fintech solution, get in touch with us today, and let’s get started.