Survey finds banks reliant on 1960s IT
Gert Jan van Dorsten, Principal Consultant - Financial Services, Capgemini discusses the need for banks key support system needs to be transformed.
1 April 2008
Publication
The Core Banking Systems Survey 2008 has found that system modernisation and
replacement is key to success in banking. With the changing economy and increasing
regulatory requirements, banks are under increasing pressue and their core banking
systems are not able to cope.
The Core Banking Systems Survey found that “almost all of the top retail banks globally are still using legacy systems dating from the 1960s and 1970S in domestic markets, despite the growth of packaged banking solutions in international operations over the last three decades.
Gert believes that “key support systems need to be transformed to react to these trends.” He added that international legislation and regulation necessitate more transparent and understandable products.
“Higher flexibility, such as adaptable mortgage products is required by some customers. Changes to pricing structures such as the introduction of risk-based pricing and package-based pricing required to attract customers.” Gert concluded.
To read the rest of the article at Director of Finance, 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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