Core banking packaged software – an industry at a crossroads - : Fintech news
Summary
Although comprehensive functionality across multiple jurisdictions and proven credentials on legacy migration, performance, and scale remain competitive advantages for incumbents, the neo-vendors have set new standards in terms of agility and cost. Indeed, I believe existing vendors need a reinvention from the ground up to bring their product and sales organisations up to the technology standards of the third decade of the 21st century, while the neo-vendors need the time and money to build the functionality required to demonstrate evidence of large-scale migration and performance. However, core banking ISVs struggle to make the necessary investment because focusing on long-term growth is difficult when in the thrall of quarterly margin pressures and performance targets if a listed company, or when in the pincer grip of investors with short exit timeframes if privately held. The Kubernetes of Banking platform, with its modern APIs, reusable tools and components, cybersecurity, and rich data, is paradoxically a pre-requisite for Satya Nadella’s prediction to come true. Kanika Hope is a senior fintech leader with 30+ years of banking technology experience at organisations such as Temenos, SAP, McKinsey and General Electric.