Banks should fix back office complexity to secure profit

From Consultancy UK –

“Banks should focus on back office technologies in order for them to stay nimble and safe, meet regulatory requirement, and compete with start-ups, research by Accenture shows. According to the consulting firm, while on demand digital solutions for front end banking services are rapidly proliferating, including mobile and online banking channels, the back office at many banks still operates under legacy systems.”

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When paying is free, what then?

From The Financial Services Club Blog –

“What happens when the cost of payments reaches zero, the speed of payments is instant, and everyone globally can make and take a payment, what happens then?

I just had an interesting chat with someone and realised two things: one is that we’re talking about moving away from batch to real-time, and that’s where the shared, distributed ledger system fits; and moving away from banking to Fintech platforms, and that’s where the industry will integrate over time.

On the first point, we have a historical banking system built upon a mainframe ledger at the back end, to support face-to-face operations on the front-end. The re-architecting of that system demands we destroy the back end, as it was built on the basis of batch, overnight updates. How do we become real-time at the back end? That’s the key question.”

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