Covid-19 Impact on Banks, And fixes. The Black Swan Opportunity

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Global Banking Technology and Sales League Table

Sales League Table 2017/Global Banking Technology

Core banking systems can be viewed as part of the second wave in FinTech. The first wave hit the likes of payments and retail banking, essentially, any services that rely on the existing banking infrastructure. Now we are seeing challengers emerge with core platforms with accounts, cards and wallets, and all other services provided by third parties through an API. Last year, OakNorth became the first bank in the UK to have its core system fully hosted on the cloud. It had previously wanted to go down this route, but because there was no cloud policy in place, was unable to make the leap. Things change, however.

Other challengers are following suit. In mid-December, Metro Bank in the UK announced that it had moved its IT infrastructure, including its core banking operations (run on Temenos’ T24), its digital offerings (Backbase) and ATMs, to Rackspace’s cloud offering. It took Metro Bank 12 months, but in theory should take mobile-only ventures such as Starling, which has built its IT system from scratch, even less time.

As Francesca Gandolfo, Chief Operations Officer at OakNorth, pointed out to IBS Journal earlier this year, while it will be much harder for larger banks to move to the cloud due to their legacy IT infrastructures, more are considering it as a result of mounting pressure to cut costs and increase flexibility. Last year, Deutsche Bank admitted that it had been thinking about providers such as AWS and Azure for three years, and that while use of public cloud by big global banks is “very small,” it expects adoption to grow significantly in 2017.

But whilst being in the cloud is suitable for all, it might not be possible for everyone. This is because for many FIs, the biggest challenge is bureaucracy and the fact that often the IT department works separately to the rest of the business. If you don’t have support from the top-down, moving to the cloud will be a long-winded and painful process, Gandolfo argues.
Core banking, of course, remains a key area for IBS Journal. The January issue included our annual supplement, featuring interviews with the likes of Misys, Temenos, FIS, Path Solutions, Avaloq, Nymbus and Leveris. And in this edition, we bring you our annual Sales League Table (SLT), the definitive overview of the core banking market. Last time around, Temenos came out on top, reclaiming the number one spot, which it had held in 16 out of the last 17 tables. The study, the result of extensive research conducted by IBS Intelligence and Cedar Management Consulting, revealed that the banking technology sector was recovering from the 2008 crash, slowly but surely.

Who is top dog in the new SLT? And is the industry continuing its upward path? Read on and all will be revealed.

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What is the IBS Journal Feature Focus?

Each issue of our flagship monthly IBS Journal includes a Feature Focus, dedicated to a specific area of banking technology. The Feature Foci are part of the IBS Journal subscription.

IBS Journal Feature Foci cover a wide range of subjects pertinent to the financial technology industry worldwide. They include detailed case studies, analysis, interviews and other feature articles.

Each publication features independently researched and compiled material, with no advertorial or contributed articles. All articles are written by IBS, and we believe that this dedication to quality is unique among publications in the banking/financial services technology space.

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