When it comes to innovation, many card issuers are in a state of learned helplessness." — Datos Insights, Escaping the Legacy Tech Hamster Wheel, June 2024. Card program execs are caught in a cycle of quick fixes to bolt modern features onto their legacy systems. These patch-work solutions quickly turn into a tangled mess, stifling innovation – especially when it comes to interconnected systems like loan origination and digital banking. But the top-performing card programs? They’re doing things differently. The Datos report highlights why leading financial institutions are making the shift to modern card processing platforms. They asked card execs at these banks the pivotal question: why modernize? Here’s what they discovered:
About us
Founded in 2015, Zeta is a provider of next-gen credit card processing platform. Zeta’s cloud-native and fully API-enabled stack offers a comprehensive range of capabilities, including processing, issuing, lending, core banking, fraud detection, and loyalty programs. With a strong focus on technology, Zeta has over 1700+ employees and contractors, with more than 70% dedicated to technology roles. Operating across the US, Middle East, and Asia, Zeta has served a global customer base of 35+ clients who have issued over 15 million cards on Zeta's platform to date. Backed by prominent investors such as Softbank Vision Fund 2 and Mastercard, Zeta has raised $280 million, at a valuation of $1.5 billion.
- Website
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https://www.zeta.tech/us/
External link for Zeta
- Industry
- Software Development
- Company size
- 1,001-5,000 employees
- Headquarters
- San Francisco, California
- Type
- Privately Held
- Founded
- 2015
- Specialties
- banking technology solutions, credit card processing, payment processing, financial technology solutions, banking as a service, embedded finance, embedded banking, credit card management, core banking solutions, digital banking solutions, and Next gen banking technology
Locations
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Primary
Get directions
San Francisco, California, US
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Get directions
Diamond District
HAL Airport Road, ISRO Colony Domlur
Bengaluru, Karnataka 560008, IN
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Get directions
Hyderabad
Zeta Suite
Hyderabad, Telangana 500001, IN
Employees at Zeta
Updates
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In their new report "Escaping the Legacy Card Tech Hamster Wheel," David Shipper, Strategic Advisor at Datos Insights highlights the crucial need for issuers to modernize their card programs.He warns that issuers on legacy platforms are often the last to adopt new innovations or respond to market changes. Read the full report for his insights into achieving mature and high performing card programs: https://hubs.ly/Q02GhbJn0 #Zeta #NextGenProcessing #datos #digitalexperience #cardprocessing #cardprograms
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The competitive landscape in card programs is fierce, but for many executives, the real battleground is their own aging tech. Datos Insights' new report highlights six market risks that reveal the limitations of legacy systems. 📌Some risks are market-led, impacting revenue and forcing card programs to follow digital innovators: 1. Customers are preferring digital-first experiences, affecting growth 2. Real-time data is driving blazing fast transaction experiences, affecting revenue as customers prefer to use non-bank offerings for payments 3. AI-adoption is widening the competitive gap with experiences that cannot be delivered on legacy platforms 📌Others are internal pressures, pushing execs to seek more agile, cost-efficient solutions: 1. COBOL programmers are retiring leaving issuers with a talent gap and unable to develop new products fast and cost-effectively 2. Branches no longer growth-drivers while competitors are driving rapid and cost effective growth on digital channels 3. Frequent system updates for regulatory changes require teams to be pulled away from new development projects for several months Which of these risks is shaping the tech choices for your card program?
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Our CEO (APAC) and Global CTO, Ramki Gaddipati, recently shared his insights with Business Standard on the future of banking technology and the immense potential of UPI-based credit. In his interview, Ramki discussed the significant opportunities in providing credit through UPI, predicting that UPI transaction volumes using credit could reach $1 trillion by 2030. He emphasized the importance of readiness and the need for banks to scale their core systems to meet this growing demand. Discover more about our vision for the future of banking and how Zeta is leading the charge with cutting-edge technology: Read the full interview here: https://lnkd.in/gWVeDwrb #BusinessStandard #UPI #Credit #Zeta
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With non-bank digital payments slated to overtake bank based digital payments by 2028, the urgency to modernize is undeniable. According to an IDC study, financial institutions risk losing 42% of payment-related revenue if they don’t migrate to modern platforms. And revenue is not the only risk driving modernization. We examine the current trends based on Datos Insights's recent report – Escaping the Legacy Card Tech Hamster Wheel – and delve into the 6 critical risks shaping the future of card programs. Read the blog to learn about these risks and how they might affect banks: https://hubs.ly/Q02FrbQ80 #Zeta #NextGenProcessing #datos #digitalexperience #cardprocessing #cardprograms
Legacy Card Tech: The 6 Hidden Risks of Status Quo
https://www.zeta.tech/us
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In the dynamic world of finance, clinging to old habits isn't an option. Our regulatory environment demands that compliance evolves alongside technology. If you missed our insightful webinar with our Chief Compliance Officer, Karla Booe, and the Consumer Bankers Association on achieving regulatory excellence with Next-Gen Compliance, catch the on-demand session now: https://hubs.ly/Q02Fm3bx0 #NextGenCompliance #BankingTech #RegulatoryUpdates
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Facing a wave of intense regulatory scrutiny in 2024, US banks are under pressure to protect consumers amidst a rapidly evolving economy and payment landscape. Compliance pros, already burdened by complex and ever-changing regulations, are especially challenged by outdated legacy systems. Discover how Next-Gen Compliance is transforming the game with real-time updates, automation, and reduced manual processes. If you missed our live session, don't worry! Watch our on-demand webinar on Next-Gen Compliance, where our Chief Compliance Officer, Karla Booe, showcases the effortless process of updating Reg Z Credit Card Penalty Fees using next-gen technology. Watch now: https://hubs.ly/Q02FlTgP0 #NextGenCompliance #BankingTech #RegulatoryUpdates
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The new Datos Insights report, "Card Program Evolution: Escaping the Legacy Card Tech Hamster Wheel," outlines the four key stages of card program maturity and provides a roadmap for financial institutions to move from legacy-dependent systems to modern platforms. Read the full report here: https://hubs.ly/Q02DTxFZ0 6 Risks of Legacy Technology: In developing the new report, Datos Insights interviewed bankers about the challenges of legacy systems. These interviews revealed six primary risks associated with maintaining outdated technology: 1. Consumer demands show they want the same experiences from their financial institution that they receive from other companies, such as transparency, control, immediacy and intuitive interactions that are seamless across touchpoints. 2. Retiring COBOL programmers pose an increasing risk for financial institutions trying to react to regulations, make product changes and even run their portfolios day-to-day. 3. Artificial intelligence will place new demands on data access and platform flexibility. 4. Real-time is replacing batch as the default for processing, data access and innovation. 5. Digital incumbents are increasingly challenging traditional financial institutions as branch networks become less of a competitive advantage 6. Regulatory changes have become a challenge to implement and manage on legacy platforms, taking time away from innovation and adding risk for issuers The report highlights how modern card processing platforms provide 8 capabilities that help mitigate the risks of legacy technology. These include: 1. Cloud infrastructure for enhanced scalability 2. API-first design for better integration and flexibility 3. Real-time data processing for timely insights 4. Low-code/no-code capabilities for faster development 5. Microservices architecture for improved efficiency 6. Modern user interfaces for better user experience 7. Modern programming languages for future-proof innovation 8. Broad card program controls for in-house management and development The report defines four maturity stages for card programs, detailing specific criteria, challenges, and recommendations for each stage: 1. Legacy Dependent: Legacy-dependent programs have limited or no ability to innovate or control their direction. 2. Developing: Developing programs are still legacy-dependent but can access modern middleware such as APIs and launch sidecar programs to innovate. 3. Modernized: Modernized programs handle most changes internally, though they can be limited when connected to legacy systems. 4. Transformative: Transformative programs empower issuers to innovate and handle changes internally with few limitations. Read the full whitepaper for in-depth insights and strategies: https://hubs.ly/Q02DTxFZ0 #Zeta #NextGenProcessing #datos #digitalexperience #cardprocessing #cardprograms
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Catch our President, Gary Singh's take on the new Datos Insights report and the critical need for modernizing card programs. In his post, Gary outlines three key considerations that are essential for starting your modernization journey. Read on to find out what they are and see how modernization can lead to more responsive products, faster time to market, and differentiated experiences. Read the full report here: https://lnkd.in/gCXj5XwU #Zeta #NextGenProcessing #datos #digitalexperience #cardprocessing #cardprograms
I was talking to a card program executive a while back, and he was telling me that it takes weeks to update the rates in their system every time the Fed changes interest rates, costing them millions a year, because they have to open a ticket with their legacy platform. When things get this broken, it’s often easy to wonder why card issuers haven’t modernized already. A new report from Datos Insights talks about this journey of modernization in a staged approach. I thought it was worth double clicking on the hardest part of the journey: starting it. Here’s a link to the Datos report: https://lnkd.in/gDiCGEpH In order to take the first step in modernizing your platform, you need to address three key things, and I think it’s worth discussing what those are up front: 1. More People: running two systems in parallel requires additional training and additional staff to manage. In the long-run, this pays for itself with better operational saving, lower infrastructure costs and better growth, but people need to align on an acceptable timeframe for ROI. 2. Seamless Experiences: providing a unified experience means coordinating data across multiple digital tools and using the right middleware to deliver that experience. In new sidecar programs, it can be easier to just carve out a complete program (such as small business, prepaid or commercial) rather than try to build a blended data experience. 3. Data and Reporting: in some cases, you may need to merge data from two sources to do business and regulatory reporting. The advantages of course, are more responsive products, faster time to market, the ability to own your IP and create differentiated experiences, and more. HDFC provides a good example of accelerating innovation by adopting a modern platform. I’d love to hear from others on their thoughts. Given the growing risks of the status quo, how do you take this initial step into modernization and overcome these challenges? What’s holding you back? Please let me know your thoughts in the comments. Alan Ng Alex Johnson David B. Shipper #NextGenProcessing #datos
Card Issuer Program Evolution with Modern Tech| Datos Report
https://www.zeta.tech/us
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We are excited to announce the release of a new Datos Insights report commissioned by Zeta: "Escaping the Legacy Card Tech Hamster Wheel." Leveraging their expertise and interviews with card executives, Datos Insights has crafted this comprehensive roadmap for modernizing card programs. The report dives into: 1. The four stages of card tech modernization 2. How to move your program to the next stage 3. The risks of the status quo Download the full report here: https://lnkd.in/gseEGUqq We’d love to hear your thoughts! Join the conversation and share your insights in the comments below. #Zeta #NextGenProcessing #datos #digitalexperience #cardprocessing #cardprograms
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