home Uncategorized Customer-centric, composable, collaborative: The 3Cs of innovative banking in 2025

Customer-centric, composable, collaborative: The 3Cs of innovative banking in 2025

The Australian banking sector is at a crossroads. Industry consolidation and rising competition are pushing banks to innovate, but outdated technology continues to hold them back.

Banks with traditional digital banking solutions aren’t able to offer the superior experiences that customers now demand. Decades of point solutions and a patchwork of legacy technologies has made it impossible for them to compete with the rising threat that fintech, bigtech, and neobanks present. And their customers know it.

Whether hindered by the weight of legacy systems or the rigidity of one-size-fits-all solutions, both large and small banks must adopt transformative strategies to overcome these barriers.

Is modernising and simplifying the technology that powers your bank on your agenda in this brand new year?

For a sizable proportion of Australian banking institutions the answer is a resounding ‘yes’. Getting enduring value for their investment is the challenge du jour. 

Spending seven and eight figure sums on solutions and services is no guarantee of successful outcomes. Cautionary tales are legions of programs and projects that have run over time and budget, or failed to deliver the returns leaders and stakeholders have been assured will ensue.

Irrespective of the reason for your digital transformation drive, adhering to these key principles will help your organisation derive measurable benefits from the investment it makes in 2025.

Set clear goals

Digital transformation should be more than a simple tech refresh. It’s an opportunity to rethink processes and platforms to deliver smarter, faster, and better outcomes.  Rather, it should be a business value exercise that analyses and overhauls platforms and processes both, so the organisation can start doing things smarter, faster and better.


That’s more easily achieved if there are clear goals, and even clearer metrics that can be used to determine whether those goals have been met or exceeded.

Design experiences, not transactions

Banks can no longer rely on legacy processes that prioritise operational efficiency over customer experience. Today’s customers demand seamless, personalised interactions across every channel—experiences that feel relevant, intuitive, and proactive.

Achieving this requires rethinking traditional approaches to service delivery. By leveraging data-driven insights and redesigning customer journeys, banks can create value at every touchpoint, fostering deeper relationships and building trust. Every interaction should be an opportunity to strengthen loyalty and deliver exceptional service.

Embrace composability

With technology evolving rapidly, composable architectures provide banks with the flexibility to adapt and innovate without the limitations of monolithic systems. By embracing modular designs, financial institutions can introduce new features incrementally, scale capabilities as needed, and reduce time-to-market for innovation.

This approach allows banks to focus on transformation that aligns with long-term growth, enabling them to stay ahead in a competitive market. Composable platforms empower institutions to respond swiftly to changing customer needs and regulatory demands, ensuring sustainable success.

Forge trusting partnerships

Innovation doesn’t happen in isolation. Today’s banks need to create strong ecosystems by building strategic partnerships with technology providers. With open APIs and modular, pre-integrated solutions, banks can seamlessly connect best-in-class capabilities, accelerating transformation while focusing internal resources on what sets them apart.

By working within an ecosystem, banks avoid the complexities of building everything in-house, gaining access to cutting-edge solutions while maintaining control over their strategic direction. Collaboration is the key to delivering innovative services that meet and exceed customer expectations.

Transformation is a marathon, not a sprint

Innovation in banking isn’t about doing everything at once; it’s about doing the right things, one step at a time. Whether it’s embracing composability, rethinking customer journeys, or forging stronger partnerships, 2025 is your opportunity to thrive—not just survive—in a world that’s moving faster than ever.

Jeremy Thomas

Regional Sales Director at Backbase

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