In an article published on BBC Business, Technology of Business editor Matthew Wall investigates whether the existing technology in use by the banking sector is putting the major players at risk of ‘extinction’.
In today’s tech environment, the modern customer expectation is a fast and reliable service. Many of the global banking giants are experiencing problems with their existing technology, such as customers being unable to access online bank accounts because of outages caused by a reliance on slower old, slower back-end legacy systems.
This has opened up the market to competition from smaller start-ups who have built their operations using the latest technology and software. “And these system failures – or outages in the jargon – undermine confidence in traditional banking and encourage more competition from nimbler start-ups,” says the article.
These younger banks are able to innovate and offer customers responsive access making accounts more readily accessible, for example via facial recognition and video chat customer service apps. This is something the established players cannot do as freely due to technology existing on legacy sytems.
“The new computer systems and programming languages designed to cope with this fundamental shift in our behaviour don’t interact well with the old, slower back-office systems. Layers and layers of IT have built up over the years, gradually hobbling banks’ ability to innovate and respond to this new world,” says the article.
To read the story in full, click here.