IBS Journal Feature Focus: Cloud/SaaS/Outsourcing

While banks have for some time been using public cloud for support functions such as procurement and HR, core systems have traditionally not gone public due to regulatory issues. But we are now seeing an increasing demand for SaaS offerings, particularly from the challenger banks.

That, at least, is the pitch. Yet a number of obstacles to modernisation still exist. Security tops the reasons why banks don’t use SaaS for banking-specific applications. There is also the difficulty of getting a sponsor at boardroom level and also regulation: the argument being that banks are too busy with regulation and compliance to think about innovation and modernisation. At the same time, however, regulation can also drive change, with forward thinking digital banks believing that modernising their systems and processes is necessary to comply with regulatory change.

The requirement on traditional banks to overhaul their IT to cope with rising transaction volumes and provide digital platforms that can cope with 24×7 service demands across online, mobile and social media platforms has long been evident.

There is also a need to provide better fraud and sanction detection in today’s more tightly regulated, digital environment and battle tech-based newcomers such as WeBank, Atom or Fidor, or else face disintermediation. In this environment data must be seen as an asset and better managed, shared and analysed than it has been in the past. Some banks are using cloud computing to overcome silos and provide customer-facing business intelligence (BI) tools to mine their data.

 

IBS Journal’s Cloud/SaaS/Outsourcing Feature Focus includes:

Moving to the next level

The banking sector has finally moved beyond the discussion stage to actively look at which of its core systems can move to cloud platforms. Kate O’Flaherty reports.

IT outsourcing and shared services trends

Technology outsourcing and shared services are likely to be at the forefront of the next wave of growth, fuelled by factors beyond cost arbitrage, observes Sudeep Nair, Senior Director, Cedar Management Consulting International.

Cloudy BI thinking

Retail banks know good data interrogation means good customer service and success. But Neil Ainger finds BI and new cloud-based analytical tools are being hampered by legacy IT and privacy concerns – not to mention a lack of budget, due to compliance demands, and a need for better underlying data governance.


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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