The Securities and Exchange Commission is telling investors to ask their #cryptocurrency platforms 13 #questions to weed out the “”potentially unlawful&8221; ones. In a statement released yesterday, the SEC released 13 questions for investors to ask as a means of identifying crypto trading platforms that could be illegal and thus dangerous to investors. See the …Read More
Bank Innovation
Real-time #payments have been a long time coming to the US but now it looks as if they #should be #available by the middle of 2018. #Banks and corporates are developing new ideas to take advantage.
Financial Technology
EXCLUSIVE—Distributed ledger platform #Baton #Systems took home the prize for #Bank #Innovation’s #2018 #DEMOvation #challenge this week, beating out ten other companies presenting demos at this year’s conference. Bank Innovation’s panel of DEMOvation judges chose Baton as the winner among ten other startups, including Clinc, Kony, Nuggets, Denoti, PrivaKey, and Active.AI. The three finalists competing …Read More
Bank Innovation
EXCLUSIVE–The potential use cases of #blockchain #technology in banking continue to captivate bankers, but topics like #cryptocurrency and Initial Coin Offerings, or #ICOs, may be losing a bit of their edge. This is according to a panel on the subject during Bank Innovation 2018, which wrapped up yesterday in San Francisco. Speakers on the panel, …Read More
Bank Innovation
EXCLUSIVE (SAN FRANCISCO) — Welcome #back to the #fintech boom. At this time last year, fintech was in a downturn. Fintech venture funding was down more than 9% year-over-year; valuations seemed stuck. But the fintech market has rebounded. In 2017, in the United States, overall VC funding — a barometer of startup activity and appeal …Read More
Bank Innovation
Legendary magician Harry Houdini used to perform spectacular escapes #from handcuffs, straitjackets, ropes and chains, and often combinations of them. One of his most famous and difficult escapes was the 1904 London Daily Mirror Handcuff Challenge, where Houdini managed to escape from a pair of handcuffs that had taken a Birmingham blacksmith five years to perfect.
Many bankers see the traditional application service provider (ASP) #model for managing their #core systems—renting the use of core #banking software centrally hosted and managed by a single vendor—as a set of handcuffs they cannot pick. The ASP model proved useful in the early 2000s in helping #banks lower costs. Yet over the years, the constant adding on of various components (think digital user interfaces or new payment types) atop 30-year-old #technology has created an increasingly complex maze of systems that is now hard to maintain, difficult to integrate, designed for “vanilla” service, slow to change and costly to service. Add to that the frustration of vendor-controlled product releases that can take the #future of banks’ IT innovation out of a CIO’s hands.
If banks are to have a chance of competing for customers’ attention and business against the likes of Amazon, Google, Alibaba, fintechs and others, they must devise a clever escape from the constraints of the ASP model. Digital rivals are built bottom up on IT systems that are open, scalable and flexible, enabling innovative services, high-speed responses and efficient operations. Banks need the same traits to be future #ready—to connect with broader digital ecosystems and deliver hyper-relevant services (financial and non-financial, human- and automation-supported) through multiple and rich channels in real time. Those banks unable to rise to the occasion risk becoming digitally irrelevant and targets for acquisition.
Luckily, the typical ASP model is not escape-proof. While Houdini was an illusionist who used tricks to perform his death-defying feats, banks can take a few well-staged steps to truly #free their core banking systems and become future ready.
It begins with designing the bank’s future-state IT architecture. For the future-ready bank, we envision the ASP model evolving to serve as the engine for Systems of Record, Messaging and Services activity. It will be open, modern, secure and agile enough to allow for seamless integration of applications, API management, Cloud hosting, and plug-and-play of best-of-breed technology. Rather than having the lion’s share of its IT served by a single ASP provider, the bank provider pool becomes more diverse, fluid and adaptable. Then, banks will need to rewire their IT delivery organisation to adopt a multi-speed approach, operating and simultaneously supporting multiple business objectives. They will also need to “hollow out the core” and diversify the providers of IT technology for greater flexibility and innovation. Houdini used keys and cutlery; banks can use processes and technology to free themselves from the handcuffs of the ASP model.
Read our recent report, Breaking Free of the ASP Model, for a closer look at how banks can break free of their ASP model—and how a few banks are already doing it.
The post Free core banking from the ASP model to be future ready appeared first on Accenture Banking Blog.
EXCLUSIVE–#Fintech startups are definitely #driving change within the financial service industry–no surprise there–but more than providing some necessary technical upgrades, fintech has established such a place in the industry that is now driving what customers expect from their #banks. This is according to Peggy Mangot, senior vice president, innovation, for Wells Fargo, who spoke on …Read More
Bank Innovation
#Banks need to get ahead of Facebook and other #technology companies if they want to interact conversationally with #their #customers directly.
Financial Technology
EXCLUSIVE – #Cryptocurrency is an #asset #class that enables a new kind of software, #Adam #Ludwin, co-founder and CEO of #blockchain #technology platform #Chain said at the Bank Innovation 2018 conference in San Francisco. That software, according to Ludwin, enables decentralization. At Bank Innovation 2018 in San Francisco, Ludwin spoke on the topic. Even, #bitcoin, …Read More
Bank Innovation
EXCLUSIVE – Most Bank of America users do their deposits online or through ATMs, only 25% of them make deposits at #branches. And yet, branches are #still #important to the bank. “When it comes to opening an account with us, 80% of that happens in our financial centers,” Michelle Moore, head of innovation at #BofA …Read More
Bank Innovation
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