In an article published in The Financial Revolutionist, Qolo Co-Founder and CEO Patricia Montesi, highlights the critical challenges regional and community banks face due to outdated systems. While debates around stablecoins and their potential impact on deposit flight dominate discussions, she argues that the real threat lies in the banks’ reliance on decades-old technology. Legacy systems were built for batch processing and basic ledgering. As a result, these systems hinder banks’ ability to offer real-time visibility, modern cash management and personalized commercial products. Therefore, banks are losing their competitive edge and high-value customers to third-party providers.
The rise of real-time payments has further exposed the limitations of these outdated systems. For instance, issues like inconsistent posting and manual reconciliation create operational inefficiencies. Patricia’s article emphasizes that banks must modernize their infrastructure to remain relevant and competitive in today’s financial landscape. By embracing innovation and delivering modern services, banks can not only address these challenges but also position themselves to thrive in a rapidly evolving market.
Read the full article here.
