Coronavirus Impact on Banks ‐ The Top Ten List

Read the blog by Mr. Sanjiv Anand, Chairman, IBS Intelligence.

The Black Swan Opportunity |Get your bank digital ready.

IBSI Special 5 Digital Report Package with Special Offer. Subscribe now

IBS Journal: The iconic monthly FinTech magazine

March 2020 issue out now! Subscribe now

India FinTech Report 2020

Insights into the historical and projected market size of key FinTech categories. Subscribe now

IT Strategy Including AI and Robotics and Cloud/ SaaS /Outsourcing

Last year, new entrant, OakNorth, became the first bank in the UK to have its core system fully hosted on the cloud. It had previously wanted to launch on the cloud, but because there was no policy on cloud banking in place, was unable to make the leap. Things change, however.

Other challenger banks are following suit. In mid-December, Metro Bank 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 banks such as Starling, which has built its IT system from scratch, even less time.

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.

Whilst being in the cloud is suitable for every bank, it might not be possible for everyone. This is because for many banks, the biggest challenge is bureaucracy and the fact that often the IT department works completely separately to the rest of the business. If you don’t have support from the top-down, moving to the cloud will be a very labourious and painful process.

Also in this Feature Focus section:

We look at how, as FIs predict and plan for the way consumers will manage their money in the future, AI is high on agendas for 2017 and beyond.

The face of the friendly neighbourhood banker is slowly, but surely changing. Robo-advisors, for example, are eating away 50-60% of new jobs in the wealth management space. Welcome to new age banking.

The outsourcing industry has evolved over the last 30 years, with major economic factors providing impetus for growth. However, the tide is now turning against it.

Click here to access the full feature focus.

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.

Click here to subscribe to IBS Journal