Advancing technology provides both a big
opportunity and a big challenge to businesses in all sectors
today. It
has created a generation of consumers who demand ever more freedom and
accessibility to services, while also granting companies an unparalleled
chance to understand and engage with their customers. While it affects
all aspects of business, none feel it more keenly than the world’s
banks, that face constant pressure to build a customer-centric
framework
but are faced with many technical and regulatory limitations
Mohua Sengupta
Banks, especially the most
well-established institutions are at a relative disadvantage because of
their sheer age. Many of the leading banks are over 200 years old, and
while being so well established has many advantages, it also means they
had to explore new technology as it becomes available, and integrate it
as best they can. A technical legacy stretching back half a century or
more means that many banks have found themselves trapped by the
restrains of their own systems.
These limitations have a negative aspect
across all areas of operation. For one, the rigid architecture that
these older systems are built on prevents them from effectively
developing new products and bringing them to market, as everything they
do is defined by the legacy. It also means that the cost of day-to-day
maintenance is much higher, as older systems need more work and may
require specialist skills.
Alongside simply keeping up normal
operations, any attempts to change and update systems can become a major
challenge. Banking is far more complicated than most other sectors, and
is also subject to very stringent regulations. Any change to the way
data is managed leaves them at risk of strict penalisation if they do
not comply.
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