The use of out-of-date back-office software has been a problem for banks for some time, as aging systems have left them vulnerable to data breaches or system failures. But there is now an additional issue emerging as front-end technology risks demanding more of the back-office than it can deliver.
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Jerry Norton,
CGI
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Jerry Norton, head of strategy at IT and business software outsourcing company CGI, says: “There’s a risk of it becoming a two-speed change, with front-office technology moving forward with services delivered by apps with 24-hour access, but with the back-office systems struggling to keep up, as new applications are added on top of legacy systems.”
Norton adds that the issue is threatening to hold back progress: “The banks can’t offer the full potential of what is actually possible through market and regulatory changes if their back-office is not up to it.”
For some, there has to be a specific need before change is made. Eugene Danilkis, CEO of software-as-a-service provider Mambu, says: “Banks are facing pain points from competitors, regulatory changes, customer expectation and dwindling profit margins to change.”