Comments
3 Technology Gaps Facing Financial Institutions
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KBurger
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KBurger,
User Rank: Author
7/24/2014 | 3:39:58 PM
Re: Architecture/culture
Good points. Yes, definitely an argument against both the "quick fix" that doesn't really fix anything and potentially creates more problems down the line, but also an argument for "perfection is the enemy of the good" (sorry for all the cliches). But it certainly supports all arguments for investing in a flexible infrastructure.
John Lankenau
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John Lankenau,
User Rank: Apprentice
7/24/2014 | 9:42:09 AM
Re: Architecture/culture
Thanks for your comment, Katherine! 

I think you hit on an important irony...many are  too busy adapting to change to spend the time to strategically build the right foundation (i.e., take the long view) to be able to adapt to change effectively.  I 100% agree it's a strong argument for investing in a modern platform (thanks for the preview for my next piece!), though I'm not sure the gaps I mention merit replacing an entire core system.  Well architected platforms can sit alongside the core, addressing the limitations without the trauma – and expense – of replacing such an important system.
Jonathan_Camhi
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Jonathan_Camhi,
User Rank: Author
7/23/2014 | 5:20:36 PM
Re: Architecture/culture
Yeah and modeling credit risk -- and failing to communicate that risk to the business as is mentioned in this article -- was one of the underlying reasons for the financial crises. These core banking functions can still make or break the whole industry.
Byurcan
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Byurcan,
User Rank: Author
7/22/2014 | 11:00:49 AM
Re: Architecture/culture
Especially when all banks here is how they have to have the latest bell/whistle to compete the nontraditional FIs.
KBurger
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KBurger,
User Rank: Author
7/22/2014 | 10:08:35 AM
Re: Architecture/culture
It's hard to take the long view when technology and business conditions change so rapidly. That's a challenge for all businesses, it's not unique to banking/FS but probably plays out most dramatically there. That's also one of the arguments for investing in new core systems/platforma and modern, usually cloud-based infrastructures -- to enable the flexibility to respond to near term trends and opportunities, but also to have the necessary foundation to support the day-to-day business and compliance requirements.
Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
7/22/2014 | 9:13:48 AM
Re: Architecture/culture
I certainly hope that banks are working on these issues and not just focusing on the shiny object of the day (mobile, payments or whatever). It's easy to get caught up in the frenzy surrounding new technology, but the core banking disciplines are still what drives a bank's profits.
Byurcan
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Byurcan,
User Rank: Author
7/21/2014 | 4:05:24 PM
Re: Architecture/culture
True, it reminds us that it's not all about ipdad apps and bleeding edge mobile payments.
KBurger
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KBurger,
User Rank: Author
7/21/2014 | 1:42:56 PM
Architecture/culture
These are the kinds of nuts-and-bolts, day-to-day issues that are critical to performance and compliance but I think tend to get overlooked in the discussions around digital, multi-channel, etc., as these are not inherently customer-facing matters. Yet, as John points out, failure to address these gaps will seriously compromise a bank's ability to manage risks and assets and to comply with both new and long-standing regulations. Obviously there is an architecture and systems aspect to addressing the gaps -- but it seems like a lot of the problem might be cultural/management as well, because of the need to reconsider priorities and commit resources (time, people, $$) to something that isn't "hot." Good wake-up call, John.


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