Q . WHAT EFFICIENCIES CAN A COEXISTENCE MODEL PROVIDE FOR BANKS ? Nelson Wootton : When we talk about coexistence , it ’ s important to understand the context . Replacing a core banking system is akin to open heart surgery while the patient is walking around . It ’ s a terrifying prospect for a financial institution , with so much to lose .
At SaaScada , we work with financial institutions differently . Our system can output data in any format , allowing for a coexistence model . We can sit alongside an existing core system and output our data in the same format , feeding into all management information and regulatory reporting with minimal disruption .
This coexistence model is about migrating product by product , running them in parallel with the old system
“We ’ re highlighting that doing nothing is not an option – banks will lose business if they don ’ t innovate ”
STEVE ROUND CO-FOUNDER & PRESIDENT SAASCADA rather than doing a ‘ big bang ’ migration . It ’ s a much better route to transformation , de-risking the process and providing innovation in a low-risk way .
By adopting this approach , we ’ re enabling financial institutions to reach for new products and markets without core transformation , which is critical . This combination of factors significantly reduces risk for a bank ’ s board and , ultimately , risk is their number-one concern every time they meet .
Q . HOW IMPORTANT IS FINANCIAL INCLUSION FOR YOU AND HOW DO YOU DEFINE IT ? Steve Round : Having chaired The Big Issue Foundation and being on the board of Centenary Bank , the second-largest bank in Uganda which was built on microfinance and micro-credit , I don ’ t like the term ‘ financial inclusion ’. Let me be clear on that : the reason I don ’ t like it is that it can ghettoise people into a second-class product . People say , ‘ Oh , you have that ; I don ’ t need it , but you have it .’
The whole purpose and passion I have is for financial inclusivity because the best thing you can give anyone in life is selfesteem . No one wants to be part of the ‘ poor person ’ s bank ’. People want access to high-quality financial services at the right price .
SaaScada ’ s technology is built to enable us to support micro-finance institutions in Africa as well as high-net-worth banks in Switzerland on the same platform . This makes the cost of transactions low