TEMENOS
is banking on the digital future in the cloud
‘ So , at present , about 70 % of most banks ’ I . T . budgets are dedicated to maintaining their legacy systems . In other words , that ’ s money spent on keeping old systems running rather than innovating and providing a better experience for their customers .’
JP says this cumbersome approach means these banks struggle to compete with new entrants into the banking space such as FinTech . They are simply unable to launch and manage new products fast enough .
However , JP argues that the bigger , established banks remain extremely well placed to win in the long term as they have consumer trust on their side and the volume of customers .
JP says the key to success is being willing to embrace the challenge of ‘ digital transformation ’ where banks are harnessing new technologies to develop far more agile , straight through , automated processes to make significant efficiency gains and provide an enhanced experience to their customers .
‘ This next generation of core banking platforms - built for the cloud - can deliver complex functionalities 20 times faster and significantly reduce cost of operations to about 10 % of legacy systems .’
According to JP investing in digitalisation AI and cloud technology is a no-brainer for the banking businesses who want to survive and those who want to get into the market . ‘ They will all need cloud and artificial intelligence technology to succeed ,’ he says .
ROOM FOR ALL So , if a battle has commenced and the challenger upstart start-ups , with their nimble agility and brand spanking new software can take the high ground , where does that leave the more cumbersome ‘ dinosaurs ’? Are they the doomed old guard ? Are they finished ? Or are they even close to extinction ?
206 November 2021