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From Legacy to Innovation: Building an All-Digital Bank

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11 June 2024

Considerations, Strategies, and Technology Approaches for Traditional Institutions

Abstract

Traditional banks and credit unions are increasingly launching new, digital-only brands. Standing up a modern digital-first version of the bank can provide many advantages and it’s an understandably attractive strategy for FIs who want to reach new customer markets but struggle with poor digital offerings and legacy technical debt.

FIs must approach an all-digital brand strategy for the right reasons and with a clear path to execution and measurable success. Solid business strategy combined with technical implementation and customer experience will ultimately determine success.

This report summarizes Celent's view of the landscape of digital-only brands that have been launched in recent years. We provide business strategy, technology considerations, and pitfalls for traditional institutions to consider as they embark on a new digital bank journey.

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