By moving services into the cloud, businesses have enabled disparate divisions to examine, amend and respond to a single set of data, eliminating redundancies and inaccuracies, and develop and scale services without infrastructure. The time has come for financial services to embrace the cloud and its benefits.
The question of whether the cloud will play a major part in our business future has been asked and answered: the cloud has filled niche after niche in our everyday lives, from email and back office functions at work to television and video games in the family home. Even the conservative world of books has been extensively disrupted by cloud-based eBook services like Amazon’s cloud-powered Kindle Whispernet.
Banks can position themselves better for a customer-centric model by by leveraging the cloud to simplify their IT Environments.
Many banks that are building towards a customer-centric business model face a common challenge: they have too much software and applications running through multiple lines of business and channels, say Mike Cook, a partner at IBM. Not only is it difficult to gain a 360-degree view of the customer in such a complex environment, but maintaining such an environment is a huge expense for many banks that soaks up investment that could be going to strategic goals like customer-centricity, he explains.
Banks don’t feel confident about their ability to innovate, even though they say technology and innovation will be the biggest success factor in the future.
Senior bank executives across the world view technology as the biggest cause of transformation to the industry in the near future, according to a PwC study released earlier this month called “Retail Banking 2020: Evolution or Revolution.” Technological advances was the most popular choice among the executives in the survey as one of the global trends that will disrupt banking in the next five years, with 86% of respondents citing it as one of their top three trends.
Today’s topic, is a common question that is hard to define a specific answer for is;
“What constitutes a Core Banking System ?”
There is a set of capability that I think everyone will agree is in scope; The accounting ledgers and posting mechanism that enact the product definitions are the core of any core banking system. From this point, I think things get a bit more subjective. My stake in the ground for a Core Banking system in addition to the above is.
- Customer file – The legal account holding data, not the breadth required for CRM
- Payments – The ability to capture and invoke payments against accounts
- Credit Management – Setting limits and managing
- Collateral – Held against credit
- Securities – Non cash holdings
- Regulatory reporting
Back-end investment for compliance and investment in digital channels will drive strong growth in IT spending among North American banks, according to Ovum.
U.S. Bank is joining a short list of large financial institutions that are testing voice biometrics as a potential replacement for the traditional password. That list includes Wells Fargo & Co. and Barclays Plc.
Voice biometrics software users log in to an application or website by speaking a word or phrase. The word or phrase is compared to a previous recording the customer has made to verify it’s the same user.
In a previous post I touched upon the importance of infrastructure in providing the level of availability required for banking applications. In this post, I will expand upon that, and discuss some availability patterns as well as the constraints we need to operate within as we design our Solutions.