Independent Banker - April 2024 - 63

ADVERTORIAL SPOTLIGHT
Guest Experts:
Core Technology
The ability to advance your Bank above-the-core.
CHALLENGE: Banks need to grow but to expand their deposit gathering channels, banks are anchored by their legacy core
system and often believe complex core replacement is required that would overwhelm the bank.
SOLUTION: Infinant is a technology provider solely focused on enabling banks to grow their digital and embedded finance
deposit channels above-the-core. Our Interlace Banking Platform, uncouples banks from their longstanding dependency
on legacy infrastructure, unlocking new products in new channels at scale.
Expand your business models
without core modernization or
replacement.
Coreless Banking is a transformative
concept within the world of banking
that aims to revolutionize how
financial institutions operate. Coreless
banking does not mean " Banking
without a core " . Instead, it's the shift
from monolithic core system to a
composable platform architected
on microservices and application
programming interfaces (APIs). This is
also referred to as " hollowing out the
core " . The other critical component
to coreless banking is about adopting
a platform-based approach that
provides banks with the flexibility to
build and customize programs on a
single platform but not from a single
vendor.
This approach enables a wide range
of innovations, from direct bankingas-a-service
(BaaS) programs to the
THE ESSENCE OF CORELESS
BANKING LIES IN ITS
INCREMENTAL NATURE.
launch of digital-only brands, and even
facilitates the expansion of business
capabilities such as commercial
sub-account management for gig
economy wallets, escrow services, or
rental offerings. The key distinction
with coreless banking is that it's
not solely reserved for large banks;
rather, it's an approach that any bank,
regardless of size, can adopt within its
ecosystem.
Coreless banking in the embedded
finance space.
The essence of coreless banking lies
in its incremental nature. It begins
with the implementation of a virtual
account system, such as what Infinant
offers. This system allows banks to
manage customers, accounts and
money flow orchestration outside of
their traditional core banking systems,
thereby opening up avenues for new
business models and innovations.
By leveraging a virtual account system,
banks can manage the creation and
maintenance of accounts and money
movement at a fraction of the cost
incurred by legacy systems. Added
to that, this solution streamlines the
way banks implement new solutions,
all without having to invest heavily in
IT infrastructure. That's why platforms
such as Interlace significantly
reduces costs. What's more, federal
banking regulators have signaled that
supervisory scrutiny is expected to
increase materially in 2024. Banks must
maintain ownership and control. With
Interlace, Banks can configure their
products and accounts, along with
fraud and AML controls within Interlace
to launch new deposit programs
and perform daily settlement to their
legacy core operating accounts.
These cloud-native platforms do
not require bank IT involvement
and require no legacy core provider
engagement. This allows banks to
launch new products, in new channels
and avoid the complex and expensive
considerations of core replacement
projects.
By hollowing out the core, banks can
launch new programs with lower
operating costs, improved time-tomarket
and reduced complexity while
maintaining regulatory control.
Chris Siemasko
Infinant Go-to-Market
Chris.siemasko@infinant.com
infinant.com

http://www.infinant.com

Independent Banker - April 2024

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