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
Three years ago, SAP’s acquisition of #expense #management software provider Concur sent shockwaves through the expense management industry. Its impact continues to shape the evolution of the #market today. The pairing of Concur, already the expense management market share leader, with SAP, one of the largest ERP software providers in the world, sent a clear message to the rest of the market: significant advancements and changes would be required to keep pace with the market leader. As a result, competing providers have responded with a flurry of product enhancements and strategic partnerships.
As shown in Figure 1, some of the major players in the expense management market have moved quickly to leverage new, customer experience-enhancing #technology. They have pursued partnerships with complementary providers to compete with the massive scale achieved by SAP and Concur together. Perhaps most notably, Certify united with a number of leading expense management specialist providers in the past year to broaden its offering and emerge as a formidable challenger.
As the market continues to evolve, the coming years will reveal what roles providers and commercial card issuers will play in #shaping the future expense management landscape.
To see how consumer interest in expense management services vary by age groups, read our recent report: Driving the Future of Payments: 10 Mega Trends
The post Top 5 trends shaping the expense management market appeared first on Accenture Banking Blog.
EXCLUSIVE — As hacks and other methods of digital fraud rise with the adoption of mobile #payments, companies and consumers continue to search for better ways to authenticate and identity users making payments. For certain markets, adoption could come more quickly than others, Bob Reany, executive vice president, global products and services, identity solutions for …Read More
Bank Innovation
Global #money transfer service #WorldRemit is launching in New #York, providing state users the ability to transfer funds to nearly 150 countries, the company announced yesterday. There are 4.5 million immigrants in New York, according to WorldRemit, which the company is focused on: the service allows users to send money internationally without the need to …Read More
Bank Innovation
The 16 registered #cryptocurrency #exchanges currently operating in Japan will soon form a self-regulating #body, #after a $ 530 million #heist of digital coins in the region led to investor concerns, Reuters reported today. The decision comes after hackers stole the above sum from Japan exchange Coincheck Inc in January 2018, raising questions regarding the regulation …Read More
Bank Innovation
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