Leverage technology for cost cutting - SWIFT

Most Financial Institutions have been very slow in upgrading themselves with new technologies. Obviously they cannot do frequent upgrades BUT all of them should regularly review their existing systems to identify areas where technology can help them in cost reduction.

One of big operation cost for any financial institution is in sending financial messages via proprietary networks like (SWIFT, SIC, etc). Banks can do HUGE saving if they have internal system/application that sends valid financial messages internally (to its branches) or even to partners in many cases. This is easily possible today with today's technologies and many banks are successfully doing this to reduce their operation cost.

At the same time, banks can also reduce their IT spending by replacing many of their legacy systems. Many times you will see implementation and maintenance cost of legacy products more than cost of the product itself! I know many major banks still using legacy systems for their critical operations. New technologies will help them reduce their operation and maintenance costs.

Related Article: Microsoft Technologies in Financial Domain - SWIFT