In today’s banking landscape, where more than 70% of people prefer to bank digitally, the ease of that experience determines consumer loyalty. Financial institutions (FIs) are well aware that customers expect a banking experience as fast and intuitive as shopping online or reserving a car service. Yet many FIs whose technology can’t deliver that experience are still hesitant about progressing to a future-ready platform. Why? Despite understanding the need to stay competitive, decision-makers may harbor concerns based on past experiences with older platforms. Here, we examine the four most common sticking points—and how to overcome them.
1. Cost: Can we afford to upgrade?
The question is, can you afford not to? Executives often assume the investment required to move to a new platform is too high, especially for mid-sized institutions with tight budgets. These fears are compounded by the worry that cost overruns or unplanned expenses could derail the initiative altogether.
How to overcome it: The key is to approach cost not as a static line item, but as a strategic investment. Cloud-native digital providers offer modular architecture, phased rollouts, and scalable solutions that let institutions start small and grow over time. Most importantly, they provide the consumer experience lacking in your current platform. In many cases, vendors can provide ROI projections based on reduced maintenance, improved efficiency, and increased user engagement. Financial institutions should ask for transparent pricing models and case studies that show how similar organizations have managed cost effectively and achieved long-term savings.
2. Complexity: Overestimating the technical lift
Many FIs believe their current environment is too tangled to untether from, with legacy systems so deeply embedded that any transition feels overwhelming. This perception of complexity fuels paralysis.
How to overcome it: A future-ready digital platform should simplify operations, not complicate them. Reputable vendors offer structured implementation playbooks, integration APIs, and dedicated support teams to manage migration. The right partner will map out each phase, coordinate with core providers, and do the heavy lifting on data migration. What’s more, future-ready, cloud-native platforms can reduce infrastructure burden going forward, turning once-complex environments into streamlined ecosystems.
3. Customer disruption: Fearing the fallout
What if something breaks? What if customers are confused or lose access during the transition? These are legitimate questions—but they often assume worst-case scenarios.
How to overcome it: Smart rollouts are designed to be seamless for end users. This starts with clear communication. A phased deployment plan, advance notifications, and customer education (via in-app messages, FAQs, or branch staff) all play a role in smoothing the transition. Some FIs introduce new features gradually or offer opt-in previews, giving users a sense of control and confidence. Metrics like survey responses and login behavior can be tracked in real time to spot friction and respond quickly, minimizing the risk of churn.
4. Change management: Getting the team on board
Perhaps the most underappreciated challenge is internal buy-in. Employees may resist change, even if the current system is outdated, especially if they’re comfortable with current tools or skeptical about the promised benefits. Leadership may struggle to align departments or maintain momentum.
How to overcome it: Bring employees into the process early, through discussions, pilot programs, or user testing, to give them ownership. Provide robust training before launch, and equip frontline staff with cheat sheets, demo access, and talking points. Designate internal champions who can answer peer questions and promote adoption organically. Celebrate wins publicly, whether it’s faster account openings or improved mobile app reviews, to reinforce the value of the new platform and sustain buy-in across the organization.
Turn perceived barriers into opportunities
While these concerns are real, they’re also addressable. With the right partner and a clear roadmap, you’ll see your digital banking upgrade as an opportunity instead of an obstacle. For a deeper dive on how to move forward, read Lumin’s white paper: “Unlocking the path to a successful digital banking transformation.”
