https://www.fintechfutures.com/wp-content/themes/fintech_child/assets/images/logo/fintech-logo-2.png
  • Home
  • News
  • Intelligence
    • Back
    • Features & Analysis
    • Interviews
    • Reports & Surveys
    • White Papers
    • Case Studies
    • Webinars
    • Podcasts
    • Videos
    • Library
    • Techwire
    • Browse
  • Publications
    • Back
    • Banking Technology Magazine
    • Supplements
    • Daily News at Sibos
    • Subscribe to Magazine
  • Content Hub
    • Back
    • COVID-19: Industry Impact & Response
    • Diversity & Inclusion
    • Food for Thought
    • I’m Just Saying
    • The Heart of the Matter
    • Fintech Agony Uncle
    • It’s a Matter of Comms
    • Challenger Banks Guide
  • Videos
  • WTF? Podcast
  • Awards & Events
    • Back
    • Banking Tech Awards
    • Banking Tech Awards USA
    • PayTech Awards
    • FinTech Futures Edge: PayTech
    • All Events
  • Advertise
  • Jobs
  • More
    • Back
    • About us
    • Contact us
    • Advertising / Media Kit
    • Banking Technology Magazine Calendar
    • Reports Calendar
    • FinTech Futures Newsletter
  • FinTech
  • BankingTech
  • PayTech
  • RegTech
  • WealthTech
  • LendTech
  • InsurTech
  • US Edition
    • Intl. Edition
Banking Technology
  • NEWSLETTER
  • Home
  • News
  • Intelligence
    • Back
    • Features & Analysis
    • Interviews
    • Reports & Surveys
    • White Papers
    • Case Studies
    • Webinars
    • Podcasts
    • Videos
    • Library
    • Techwire
    • Browse
  • Publications
    • Back
    • Banking Technology Magazine
    • Supplements
    • Daily News at Sibos
    • Subscribe to Magazine
  • Content Hub
    • Back
    • COVID-19: Industry Impact & Response
    • Diversity & Inclusion
    • Food for Thought
    • I’m Just Saying
    • The Heart of the Matter
    • Fintech Agony Uncle
    • It’s a Matter of Comms
    • Challenger Banks Guide
  • Videos
  • WTF? Podcast
  • Awards & Events
    • Back
    • Banking Tech Awards
    • Banking Tech Awards USA
    • PayTech Awards
    • FinTech Futures Edge: PayTech
    • All Events
  • Advertise
  • Jobs
  • More
    • Back
    • About us
    • Contact us
    • Advertising / Media Kit
    • Banking Technology Magazine Calendar
    • Reports Calendar
    • FinTech Futures Newsletter
  • Search
  • US Edition
    • Intl. Edition
  • newsletter
  • FinTech
  • BankingTech
  • PayTech
  • RegTech
  • WealthTech
  • LendTech
  • InsurTech
fintechfutures.com


Banks face ‘death by a thousand cuts’

  • Written by FinTech Futures
  • 14th October 2015

Oracle has launched the Oracle Banking Digital Experience, which it describes as the end result of a five-year project to build the ‘next generation’ of banking platform. Ashwin Goyal, group vice-president and general manager at Oracle Financial Services, said banks would not have to make “major changes” to their core systems as a result of the new platform.

However, the launch represents a shift away from the product-led business models of the past, towards a new customer-centric reality, he said. This is necessary, if financial institutions are to keep pace with the threat of new non-bank competitors.

“The moment you touch the core, that’s when the brakes come on, everything slows down, costs go up and the time to market is dramatically lengthened,” he said. “The other thing is because the market is moving so fast; you have a short window to deliver. If I am on a 12-month cycle and on month six I realise there is a new requirement that I need to respond to, I am basically 18 months away from responding. But if I am on a two or three-month cycle, I am at worst four or five months away and that’s where the need for agility comes in.”

An important aspect of the Oracle Banking Digital Experience is that it has been built to move away from the concept of silos for activities such as mobile and internet banking. “The problem with almost everything until now was the limited option set banks had available for transformation,” said Goyal.  “There were two ways banks could do it and both are limited. Either they had to build channel silos, for example an internet banking silo plugged into core and the same on mobile, which leads to inconsistency; or they tried to build a model experience and plug directly into the core, in which case it is very hard for a mobile app developer to consume directly.”

The software company said it had created a set of tools that sit in the channel layer, which present a simple application programming interface (API) to the user or developer. That makes it much easier for a mobile developer, for example, to understand it and interact with it quickly to produce a new service or product.“

With this approach, the need for the developer to think about the arcane banking logic is gone. A developer can build services that plug into the core banking platform. In effect, they are talking to the big payload core banking service, but the simple API-based interface we created frees up the designer to build things using HTML5 on a mobile device or on the internet, allowing them to be creative without having to modify the core themselves. In practical terms, that means they can launch new abilities every few weeks, rather than on an 18-month cycle.”

Oracle is trying to position itself as a potential ally to financial institutions in the struggle against nimble financial technology start-ups and non-bank entrants to the financial services market. Unburdened by legacy technology, many of these companies focus on particular niche aspects of banking.Therefore, while no single company is big enough to pose a threat individually, taken collectively they could potentially take a large share of the market from established players.

“These fintechs are eating away at thin slivers of the banks’ business,” said Goyal. “It’s a bit like ‘death by a thousand cuts’ – no one fintech is going to overrun the whole customer relationship, but there are some picking at personal lending, some at mortgages, others at payments and still others at wealth management. Their entire proposition taken collectively is convenience, and as a bank you have to make your business more convenient to compete with them.”

Tags: BankingTech, PayTech Worldwide

READ NEXT


  • Webinar: How to keep up with the card payments industry upstarts and capitalise on the opportunities
  • FinTech Futures Jobs: Companies offering the most in demand fintech jobs
  • FinTech Futures: Top five stories of the week – 27 May 2022
  • Bolt
    Payments fintech Bolt announces layoffs

Leave a comment Cancel reply

-or-

Log in with your FinTech Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Fintech Jobs


Related Content

  • Fintech funding deals globally 14 June – 20 June 2021
  • Correction
  • Raisin Logo
    Raisin lands first US partner bank with Dallas-based MapleMark
  • mollie
    Dutch fintech Mollie raises $800m in Series C round

Top stories

The hottest news this week

Click here to read

Magazine

Banking Technology Magazine May 2022 issue out now

2nd May 2022
view all

Webinars

Webinar: How to keep up with the card payments industry upstarts and capitalise on the opportunities

27th May 2022

Webinar: What are the top trends and technologies transforming financial services?

26th April 2022

Webinar: How to drive up digital completion rates with hybrid banking

1st April 2022
view all

Fintech Jobs

Reports & Surveys

Report: Northern Ireland fintech – leaders in ESG

17th May 2022

FinTech Futures Industry Survey & Report 2022

6th May 2022

Report: Digital transformation and trends in financial services

6th May 2022
view all

Podcast

What the FinTech? | S.3 Episode 7 | The future of digital payments

12th May 2022

What the FinTech? | S.3 Episode 6 | Passwordless is more

28th April 2022

What the FinTech? | S.3 Episode 5 | AI in financial services

14th April 2022
view all

Videos

Video: Wells Fargo at Finovate Spring 2022 – How to achieve digital acceleration

26th May 2022

Video: Greg Palmer at Finovate Europe 2022 – The future of fintech

22nd April 2022

Video: JP Morgan at Finovate Europe 2022 – fostering innovation in payments

21st April 2022
view all

White Papers

White paper: Digital lending – how technology transforms banks

17th May 2022

White paper: How to select a digital lending solution – the ultimate guide

17th May 2022

Report: Northern Ireland fintech – leaders in ESG

17th May 2022
view all

Events

PayTech Awards 2022

Find out more

Banking Tech Awards USA 2022

Find out more

Content Hubs

Sibos 2021 Content Hub

1st September 2021

The heart of the matter: a customer-centric look at fintech

4th August 2021

Diversity & Inclusion Hub

9th April 2021
view all

Media Packs

FinTech Futures Media Pack

Download

FinTech Futures Intelligence Media Pack

Download

Techwire

RAYL Innovations Provides Update on IPO Planning and Leadership Changes

28th May 2022

The IoT Community Announces Synadia as a Gold-level Corporate Member in its Elite IoT Ecosystem

27th May 2022

Wolters Kluwer Wins Third Consecutive FTF News Innovation Award for Operational Risk Management Excellence

27th May 2022

Ackroo Releases Q1 2022 Financial Results

27th May 2022

United States Electric Vehicle Charging Infrastructure Market Growth Opportunities to 2030 – Declining Lithium-Ion Battery Costs Presents Key Opportunites

27th May 2022

Key Trends and Opportunities in the Global Open Banking Market 2022-2026: Big Data Analytics Used to Personalize Customer Experience Services

27th May 2022

Evrynet And Velo Announce Strategic Merger To Build The Future Of CeDeFi

27th May 2022

Floify Welcomes Sofia Rossato as President and General Manager, and Dan Goldman as VP of Sales

26th May 2022
view all

Twitter

FinTech_Futures

FinTech Futures: Top five stories of the week – 27 May 2022 Here’s our pick of five of the top news stories from t… twitter.com/i/web/status/1…

28th May 2022
FinTech_Futures

#Analysis: Money talks Expectations about what is acceptable from a C02 emissions perspective have to mature. spr.ly/6012zryep

28th May 2022
FinTech_Futures

Payments #fintech @Bolt announces layoffs E-commerce checkout fintech Bolt is set to lay off a number of its emplo… twitter.com/i/web/status/1…

27th May 2022
FinTech_Futures

FinTech Futures Jobs: Companies offering the most in demand fintech jobs Exciting open vacancies at @Experian,… twitter.com/i/web/status/1…

27th May 2022
FinTech_Futures

FinTech Futures: Top five stories of the week – 27 May 2022 Here’s our pick of five of the top news stories from t… twitter.com/i/web/status/1…

27th May 2022
FinTech_Futures

Payments #fintech @Bolt announces layoffs E-commerce checkout fintech Bolt is set to lay off a number of its emplo… twitter.com/i/web/status/1…

27th May 2022
FinTech_Futures

#Analysis: Money talks Expectations about what is acceptable from a C02 emissions perspective have to mature. spr.ly/6018zrydy

27th May 2022
FinTech_Futures

ICYMI #fintech funding round-up: @tranch_hq, @Quantifeed, Chekk & Crowd Data Systems A handy round-up of the recen… twitter.com/i/web/status/1…

27th May 2022

Sign up for the FinTech Futures newsletter

Receive updates straight to your inbox each day

New issue of Banking Technology Magazine out now

Available to download for free

Banking Tech Awards USA - 2022 Winners

Congratulations to all of this year's winners!

FinTech Futures Jobs

Find a job or post a vacancy

Fintech Futures
  • About us
  • Advertise with us
  • Contact us
  • Fintech jobs
  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2022 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.