The Impact of Outdated IT Infrastructure on Banks

The Impact of Outdated IT Infrastructure on Banks

Lu Zurawski

Solutions Practice Lead, Consumer Payments EMEA at ACI Worldwide

Views 1164

The Impact of Outdated IT Infrastructure on Banks

10.08.2016 09:45 am

The CMA’s report will stimulate competition by forcing banks to create new access technology, known as Open APIs (Application Programming Interfaces).  These APIs, commonly used in high-tech industries, will make it easier for new bank service providers, both banks and emerging fintech companies, to develop innovative banking services. An Open API can be seen like a new portal to the bank, one which can be easily discovered and navigated by creators and developers of new services.

By allowing innovative service providers unfettered access to existing banks’ IT systems, customers – if they so desire – can access their existing bank accounts using apps provided by this new class of service provider.

Although a few banks might be slow to provide this new connectivity, some will welcome it as an opportunity to experiment with innovative new services themselves. We are likely to see both existing banks and new players embracing the new Open API technology in banking applications. These may include Personal Finance Management apps, which would provide a single and consistent environment from which a consumer can manage all of their financial affairs.

The need to offer real-time, on-demand access however will focus attention on ageing IT infrastructures at existing banks. The 2018 timescales for the CMA remedies leave precious little time for banks to make necessary changes. Banks need to be rolling up their sleeves and getting their hands dirty with this new open access technology, collaborating in the creation of practical working standards and getting used to a profound new world of connectivity.

Latest blogs

Béla Vér ApPello

The survival of banks is at the mercy of their technology vendors

Governments around the world have responded on a scale not previously witnessed to protect people around the world from becoming a victim of COVID-19. With many lockdowns still in place and now coordinated on a local level to respond to second Read more »

Nóra Bézi Bitrise

The future of finance and banking apps: balancing security and innovation

The fintech revolution in the mobile space Fintech mobile applications are rapidly becoming the norm when it comes to handling our personal finances. As these apps grow in popularity and continue to define our relationship with money, the number Read more »

Will Hurst Monevo

How can lenders leverage open banking data to tackle Covid-19 pandemic challenges

We have seen extraordinary levels of Government-backed support made available to the public and businesses alike in responding to the health crisis by our banks through payment holidays, grants and the furlough scheme. While we keep collective Read more »

Nish Kotecha and Noslen Suárez PhD Finboot

How blockchain can help us have trust in the food we eat

Today’s food supply chains are global, connected and generally efficient, but the COVID-19 pandemic has shone a spotlight on areas of weakness. The urgent need for robust and resilient systems and processes has been brought sharply into focus, and Read more »

Chris Miller RSA Security

Back to Normality: Five Steps to Stay Resilient After Disruption

The financial services sector has lived through many global disruptions, but the nature of recent events has put an unprecedented strain on operational resilience; from needing to ensure critical functions could continue with skeleton staff and Read more »

Related Blogs

Chris Skinner The Financial Services Club

Lego Bank is Here, but It’s not Built with Lego

A short time ago, I hosted an interesting group for the Nordic Finance Innovation meetings.  The meeting gathered several of the leading-edge Banking-as-a-Service (BaaS) companies that have launched in the last few years including Bud, Clearbank, Read more »

Chris Skinner The Financial Services Club

The Way We Bank is Radically Changing Too

The British Bankers’ Association released their The Way We Bank annual report last Thursday. It was interesting. Here are the key highlights: Read more »

Chris Skinner The Financial Services Club

How Can a Bank Guarantee its Future?

Three people are chatting in a bar. The first says: “It’s great working for a FinTech start-up as I get to travel the world.  As a result, I can easily call my partner and tell them I’m on a business trip to stay with my other love.” The second says Read more »

Maikki Frisk Mobey Forum

Banks: Be the Change

It’s been 20 years since Lastminute.com turned the travel industry upside down. Now Airbnb has done it again. Google, Apple and Here have long since done to TomTom what TomTom itself did to the paper map. Not to mention the changes ushered in by Read more »

David Jones Irdeto

Polish Banks Hack: Quote on the Most Serious Attack To Ever Hit Polish Banking Industry

The Polish banks attack is yet another example of creative cybercriminals leveraging diverse technologies to seed and propagate an attack across multiple banks. As banking systems become more connected or share common access points (such as a Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel