the Middle(ware) that comes with significant costs, complexities and risks, and many banks are understandably hesitant to abandon their longtime core provider. So how can community banks bridge the gap? One possible alternative to a “rip and replace” strategy is to employ the use of middleware — a solution that leaves existing core systems in place, while wrapping the core with a new layer of technology, typically an API architecture. This architecture enables banks to reduce reliance on their legacy core to deliver products faster; collect, maintain and use customer data more effectively; and foster partnerships with fintech companies. It’s a strategy that can considerably reduce the timeline for bringing new products and services to the market while reducing reliance on a legacy core system. ABA’s Office of Innovation highlights the case for middleware in a newly released whitepaper, “Exploring Banking Middleware Solutions.” The paper provides an in-depth look at how banks can benefit from incorporating a middleware layer into their core systems and gives a snapshot of the middleware vendor landscape in the U.S., as well as considerations banks should take into account when engaging with a middleware vendor. I urge you to read the whitepaper, which you can access at www.aba.com/middleware, and check out the other resources the Core Platforms Committee has made available at www.aba.com/core. ABA is deeply committed to helping its member banks succeed — regardless of where they are in their innovation journey. Our Office of Innovation works exhaustively to stay on top of the latest trends, connect banks with strategic partners and pave the way for responsible innovation policy in Congress and at the regulatory agencies. Successful innovation is key to the preservation of the broad and diverse community banking sector that makes our nation’s financial services industry the envy of the world. Email Rob at nichols@aba.com. ABA is deeply committed to helping its member banks succeed — regardless of where they are in their innovation journey. 13
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