Unlocking innovation in legacy Card Issuing payment systems

The modern consumer demands instant, mobile-friendly banking products and is ready to switch service providers to get them. Consumer preferences like these are reshaping the financial landscape, and yet many established banks struggle to keep pace. Why? It’s often down to outdated legacy systems such as card-issuing systems that weren’t built for today’s convenience-driven environment. Think about mainframe computing, batch processes and services on hold during weekends and holidays – these paradigms don’t fit the modern consumer.  

Catering to these consumer needs is not that simple for traditional banks, which often baulk at updating legacy systems owing to the massive cost, complexity and operational risk involved. There’s a sharp intake of breath from bank executives at the thought of what it will take—the massive upfront investment, inevitable service disruptions and retraining staff—all while navigating regulatory requirements. 

However, the imperative to keep up is only getting more urgent. Emerging fintech challengers like Revolut have captured growing numbers of customers and expanding internationally now outside Europe and use their agility to deliver frequent product releases. These innovative platforms are hoovering up market share, while legacy infrastructure has held traditional banks back – unable to stop the bleeding. 

To stay in the game, traditional banks need a solution. This is where payment fabric technology comes in.  Whilst new, it is now gaining coverage by global analyst firms, for example, IDC terms this capability as Platformication. Our productised solution is called Verto and is already making a positive impact across every continent. Purpose-built to modernise old card-issuing systems, Verto allows banks to adapt to the fast-evolving payments space. With Verto, banks can bring new features to market faster, improve operational agility and finally compete with digital-first disruptors.  

The challenge of legacy systems in card issuance 

Legacy Card Management Systems (CMS) are expensive core systems used to issue and manage payment cards. Used almost exclusively by banks, these systems have become an Achilles heel, limiting their ability to keep up with digital challenger banks and fintechs. 

These older infrastructures weren’t designed with agility or quick adaptation in mind. Each update or improvement requires a long, resource-intensive process, often involving custom coding and extensive downtime. As a result, banks are left struggling to satisfy the fast-evolving expectations of today’s digitally aware customers. 

Learning from Revolut’s success 

When banks look for an example of the benefits of modernisation, they cannot ignore the successes of Revolut, the UK-founded digital banking and fintech company. Established in 2015, the firm may be relatively new to the financial world, yet it has caught fire, amassing 45 million customers in over 40 countries, primarily across Europe, North America, Asia and Australia. Their rate of customer acquisition will make anyone envious, but how did they do it? 

Agility as a key to success 

By constantly rolling out new features—like instant virtual cards, customisable spending controls and seamless mobile integration—Revolut hoarded market share and set a high bar of what customer-centred financial services should look like. This agility is something traditional banks cannot hope to match with legacy systems. Banks can fight back with bundled services, loyalty rewards and partnership perks, but Revolut’s success clearly shows the competitive advantage of being able to innovate quickly and adaptively. 

Customer-centric innovation 

One of the most important aspects of Revolut’s value proposition is its emphasis on mobile-first, customer-centric experiences. The digital consumer can open and use virtual cards almost instantly, and this is in step with the increasingly seamless digital experience they receive from their travel, entertainment and retail partners. 

How Verto gives banks agility and innovation 

With legacy systems deeply embedded in their operations, many banks understandably hesitate to overhaul infrastructure, which remains critical to daily function. The result? Innovation stalls, leaving banks vulnerable to agile fintech competitors. 

But what if banks could keep up with players like Revolut? They can with Stanchion’s Verto, a powerful, modular platform that modernises the legacy CMS. By adopting Verto’s Payment Fabric, banks can implement flexible, digital-first functionalities like real-time virtual card issuance and mobile wallet integration that can match the exciting products fuelling Revolut’s success. 

With Verto, banks can launch virtual cards, real-time payments and mobile wallets without an expensive system overhaul. This ability to bridge the gap between traditional banking and digital-first experiences allows banks to offer the digital product suite that is a must-have in the rapidly evolving payments landscape. 

With seamless API integration and advanced tokenisation, Verto transforms traditional banks into agile players, ready to compete with the speed and flexibility of fintech disruptors. 

Modular, scalable architecture 
At its core, Verto features a modular, scalable architecture that enables banks to add new functionalities as needed. This way, banks can operate with the agility and speed of fintechs and neobanks, without the disruption and expense of overhauling their entire CMS. 

Real-time tokenisation capabilities 
Through Verto’s robust API suite, new tools like digital wallets, instant card issuance and tokenisation come into play. This integration opens doors to advanced, customer-centric offerings, allowing banks to quickly launch digital and virtual card options and be just as forward-facing as leaner fintechs. 

Integration through APIs 
One of Verto’s key features is its real-time tokenisation and ePIN management capabilities. With integrated tokenisation (I-TSP), Verto facilitates secure virtual card issuing on demand. Customers can instantly generate digital cards directly from their app, matching the convenience of digital disruptors. 

The core benefits of Verto for legacy system modernisation 

There are so many reasons for banks to modernise their card-issuing services through Verto. 

Cost efficiency without overhauls 
Updating legacy systems is costly. However, Verto allows traditional banks to modernise their card-issuing processes without the need of uprooting an entire CMS. Rather than a full system overhaul, Verto can be that strategic overlay that seamlessly integrates digital-first functionalities, offering banks a much cheaper but just as effective route to innovation. 

Faster time to market 
With Verto, banks can dramatically reduce the time it takes to roll out new features. Launch times can be more like weeks than months. 

Enhanced customer experience. 
From digital wallets to customisable notifications and self-service card management, Verto aligns with today’s digital standards. Today’s digital consumer demands nothing less. 

Advanced API connectivity 
Verto’s advanced API suite includes CMS Gateway and token life-cycle management. These APIs offer a much more comfortable integration with existing systems, unlocking a host of digital capabilities, such as real-time card issuance and allowing banks to connect securely with third-party fintech providers. 

Dynamic controls and self-service 
It’s what today’s customers expect. Verto brings a high degree of control and customisation to the user experience through its dynamic, self-service features. Customers can set their own transaction limits, activate geolocation controls and receive on-demand notifications, all from their mobile devices. 

Modular expansion 
Modularity is another attractive Verto feature, allowing banks to scale and adapt their services as quickly as required. Verto’s architecture is designed to support the addition of new modules without disrupting core systems. Common examples include Buy Now, Pay Later options, or QR code payments. 

The bottom line 

Markets everywhere, including MENA, Africa and Asia, are witnessing a clamour for digital issuing solutions. Driven by high mobile usage and a growing preference for convenience, this shows no sign of slowing down. 

Players like Revolut have shown that competition can come from anywhere, not just local rivals. In a digital world, the old geographical boundaries are dissolving away. By bridging the gap with agile fintechs, Verto empowers banks to protect their client base from disruptive fintechs and claim a share of the high-growth digital banking market. 

About Stanchion Payments   To learn more about how the card issuing world is evolving and how Stanchion’s solutions, like Payment Fabric Technology, can rapidly deliver new features with agility, set up a call with our experts today. Let Stanchion be your trusted partner in grabbing new opportunities and staying ahead in the competitive payments market.