Customer expectations drive back-office change
Banking technology and regulation are moving to create a real-time, cross-border environment. While this is possible in theory, dated and cumbersome back-office systems risk slowing the digital revolution, and leaving some institutions behind.
The use of out-of-date back-office software has been a problem for banks for some time, as aging systems have left them vulnerable to data breaches or system failures.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.
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.”