Banks still rely on IT from the 1960s
Computing reports on research by Capgemini has shown that banks still rely on dated IT and increasing demands from industry and consumers are adding to the pressure to upgrade.
27 March 2008
Publication
With the release of the Core Banking Systems Service 2008 by Capgemini, the report
advises banks to upgrade legacy systems to remain competitive. The repots finds
‘that even with increasing demands created by regulations, compliance and a changing
economic environment, almost all the top retail banks worldwide are still using systems dating from the 1960s and 1970s.
Financial institutions need to operate sophisticated transaction processing software to handle large volumes and provide visibility of customer use of banking products.
Gert Jan van Dorsten, Capgemini’s Netherland’s Principal Consulant, believes that consumers are right to demand their banks to have better IT systems.
“Higher flexibility, such as adaptable mortgage products, is required by some customers and changes to pricing structures such as introduction of risk-based pricing and package-based pricing are required to attract customers,” Gert stated.
“These changes would enable banks to strengthen their competitive position on the market.” Gert concluded.
To read the full article at Computing, click here.
To read the press release, click here.
To download a copy of the Core Banking Systems Survey 2008, click here.
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