Blog: Payments Modernization: What We Have Learned About its Importance and Ease

Today many financial institutions (FIs) are still using legacy systems that are 30+ years old to handle some of their most critical functions. Although these systems continue to do the job; the code, the developers and the time it takes to keep them operational are ‘old school’ and are extending beyond their prime. In fact, most of these dated systems are no longer getting updates from the manufacturer and haven’t for years, so change is not something that happens quickly.

Considering how often and fast we get updates pushed down to our phones and PCs, it is a bit mind-boggling that FIs would have such critical systems still running on this technology.

Unfortunately, most FIs have duplicate payment systems in place for every channel that handles cards/tokens – i.e., ATM, POS, online and even branch. Every change needs to sync and run end-to-end in testing to make sure nothing breaks along the way. With today’s 24/7 accessibility for these payment systems, they seem to be on borrowed time.

To understand the magnitude of these systems. In 2022, there were over 1,700 credit card transactions every second in the US*, and in 2023, there were about 3,000 debit card transactions every second in the US**.

Out-of-the-box Ease and Simplicity

Diebold Nixdorf is constantly working toward delighting our customers with breakthrough technologies and products. We have invested in a cloud-native, microservice architecture, Vynamic Transaction Middleware, and have introduced a newer, simpler way to process and share information via service-based processing.

This new architecture permits FIs to start to disassemble the big blocks of code within their systems and take certain pieces, i.e., security, authentication, etc., out and share them as small re-useable service components in different places across the enterprise. Common services can now be available as configurable facets – they do not have to be centrally located, can be distributed as needed, and are independent of the channel or back-end service that uses it.

The low-code technology allows new functionality to be added quickly while providing tools and testing that are agile, adaptable, and easier to maintain and upgrade. Additionally, utilizing a phased migration to implement this modern platform limits disruption to operations and ensures a smooth execution in the most cost-efficient manner; providing the FI with one thing their current system does not have—a future.

As financial institutions strive to evolve their infrastructure and systems to support improved journeys for all endpoints, Diebold Nixdorf has the solutions to tie the ATM and other channels together and integrate the front end, back office, and core banking, without limitations.

Is your organization ready to future-proof your banking ecosystem? Let’s discuss how we can help you develop the plan.

Sources:
*Number of Credit Card Transactions per Second & Year: 2024 Data (capitaloneshopping.com)
**GlobalData Payments Cards Analytics Database, Accessed March 22, 2024