Latest DevOps reports and research: Finextra Research

Report

Mainframe to Cloud: How to shift applications

The shift to the cloud The financial services industry is increasingly turning to the cloud to resolve challenges involving the movement of money. However, some banks, payments providers, capital markets firms and insurance companies are still questioning why an accelerated shift to the cloud is required. Further, what are the conditions, circumstances and considerations that should be taken into account when looking to migrate applications? It’s not just about technology. It’s about culture and the talent that is needed to transform from a legacy-based infrastructure and deal with a more agile method of operating and collaborating with partners in a cloud environment. This generational repositioning should be managed in an efficient manner to facilitate a successful, safe passage of moving from one domain to another. The mainframe, or the central repository, in an organisation’s data centre is usually linked to its users through workstations or terminals. Although the presence of a mainframe often implies a centralised form of computing, they are in dire need of modernisation. Those with awareness of how to transform the mainframe, how to consume the cloud, and who are able to to establish a strategic blueprint for their digital transition will be better positioned to retain their customer base. Each financial institution will have a different journey to the cloud: some will opt for a hybrid model, others will transform with the cloud or to the cloud. Mainframes present vast opportunities, but the time has come for the self-written applications and the mainframe-based business processes to be modernised. To explore these opportunities, specialists gathered for a Finextra webinar, ‘Mainframe Modernisation: The cloud shift’, that was hosted in association with Deloitte and Amazon Web Services (AWS). The webinar panel looked to discuss how mainframes can provide mission critical functionalities for financial institutions and the very specific challenges that come with modernising mainframes. This event report outlines the findings from that session.

05 September 2022 331 downloads

Report

Rebundling: The Next Stage of the Fintech Evolution

The next stage of the fintech evolution is rebundling. At the core of the industry, the catalyst for fintech evolution has continued to be disruption and innovation, but not one banking or financial services issue can simply be resolved with only disruption or innovation. After the global financial crisis of 2008, it would have been unusual to have more than one or two banking relationships. However, the emergence of an open playing field, and with the application of the Second Payment Services Directive – more commonly known as PSD2 – across Europe, non-financial businesses were able to leverage open banking and open finance initiatives to offer financial services directly to their customers. This, in turn, widened the competition and resulted in the birth of fintech businesses that each focused on attacking one part of the banking value chain – be it payments, lending, FX, or another type of offering. Slow, complex, and expensive processes were no longer the status quo; and alternative players started to disintermediate the incumbents. These new entrants increasingly became popular because of their intention to improve customer experience and provide better products and services than the banks could – and in many cases, disruptors were both better and cheaper than the banks. Additionally, new fintech channels and platforms have become viable competitors to traditional players, tempting consumers away from the institutions they trust in favour of better user experiences. Now it is not unusual for people to have up to 15 financial apps downloaded on to their mobile phones. This Finextra impact study, produced in association with Banking Circle Group, explores the evolution of fintechs and Big Techs from unbundling towards rebundling of financial products and services to the benefit of customers, as well as providing examples for the modernisation of banks and financial institutions.

22 July 2022 791 downloads

Report

Real Time Payments: Solving today's problems for tomorrow's success

Banks understand what they need from real time global payments, but reaching a position where they can leverage the full benefits available is a significant challenge. While multiple projects are underway around the globe in an effort to bring real time to multiple markets, before banks can tap in to the advantages of real time, they must first get their technological house in order. Banks must consider how real time payments should interoperate with each other, and create real time global settlement and clearing. Why does this remain such a challenge? It is all related to what is happening in the payment structure of traditional banks. Whether it’s a tier 1 bank encumbered by legacy systems, or a smaller bank with limited coverage of cross border capabilities, in almost every financial institution, payments tend to be segregated. This Finextra impact study, produced in association with Form3, will explore the current challenges faced by banks in their efforts to meet instant payment objectives, how the global real time ecosystem is driving pressure on financial institutions to evolve, canvas key trends pushing the real time agenda, and the best way for banks to orient themselves for real time success.

23 June 2022 835 downloads

Report

Cloud, the Critical Component to Power New Business Models

Today, every company is a technology company. No organisation can modernise products, deliver services, or meet customer expectations without harnessing the benefits of technology. Financial institutions are now learning from leaders in other industries and applying acquired best practices for successful cloud adoption to their business models. The financial services industry is at an inflection point in its use of technology and banks have already started to seize this moment and embark on their transformation journeys. With the increased agility that the cloud offers, products can be brought to market much faster and in a cost-efficient manner, which is what has led to traditional financial institutions adopting and migrating to the cloud with urgency. Key drivers, in addition to resilience, include the desire to be more efficient from a developer productivity standpoint and raising the bar on security has been equally important. To workshop these best practices, experts gathered for a Finextra webinar, ‘Modernise, innovate and transform on the cloud’, hosted in association with Tata Consultancy Services (TCS) and Amazon Web Services (AWS). The panel looked to explore how financial services organisations are leveraging the cloud to transform existing businesses and bring innovative new solutions to market.

11 March 2022 395 downloads

Report

Payments Transformation: Emerging Stronger

The Finextra Annual Payments Survey Report 2022 in association with Fiserv We discuss findings from the survey on how financial institutions are continuing to grow and tackle emerging and disruptive competition while rationalising investments. There is a change in emphasis towards reduction - reduction in costs through consolidation; reduction in risk through a focus on financial crime; reduction in a one-size-fits-all approach; reduction in resources to address the increasing demands of customers, regulators and the payments industry. It demonstrates that there is a clear understanding of the benefits of consolidation of payment types, including operational and customer experience improvements. Progress to this goal highlights the trend towards outsourcing standardised processes such as payment processing to a capable and trusted partner, through the evolution to payments as a service, allowing the financial institution to improve its overall operational efficiency and customer propositions. Download the report of the results from the recent Finextra Annual Payments Survey, by Finextra & Fiserv, below to learn more.

10 March 2022 913 downloads

Report

ISO 20022: How banks can avoid becoming a cautionary tale

Transitioning to the ISO 20022 financial messaging standard has been high on the agenda for financial institutions for several years, but as deadlines loom, the true advantage of early adoption means institutions are facing new pressure to migrate, and to do so quickly. By late 2022, institutions across the globe will have begun their migration to the new ISO 20022 financial messaging standard for high-value payments. SWIFT’s timeline delays have somewhat hindered the process for many institutions, but the project is resolutely on track for completion by 2025. The benefits of transitioning to the data-rich standard are well documented, but executing the migration itself is relatively new territory for financial institutions and the counterparties that transact with them. Financial organisations should approach their ISO 20022 projects with an honest view of the strengths and weaknesses of their existing infrastructure, so that avoidable mistakes remain just that. Download your copy of this Finextra impact study, produced in association with OpenText, and find out about four key areas that institutions must address when approaching their ISO 20022 migration to avoid unnecessary complications, and instead build an infrastructure that caters to a data-led, customer-centric future.

04 March 2022 605 downloads

Report

The Future of Regulation 2022

From Innovation to Execution The fire for innovation in financial services has long been raging, and regulators, having transformed their modus operandi to keep pace with the force of technological change, are carefully approaching their role in the great rewiring of the financial system. The fear once invoked by terms like artificial intelligence, cloud computing, or data sharing, has been relegated to the past, and the role of technology in the future of financial services is now accepted as being intrinsic to its success. With Open Banking reaching new realms of maturity, players have begun questioning how best to measure its success in a post-pandemic world. While Open Finance edges ever closer to pulling all focus away from the original Open Banking objectives, innovators are looking for ways to unbridle all pretence tied to our traditional view of what finance should achieve. Instead, they are placing impeccable user experience at the centre of their offering. This unbridling is also becoming apparent in the burgeoning appetite for decentralised finance offerings by retail and institutional investors. Central bank digital currencies (CBDCs) inject another layer into this mix, as central banks and governments carefully weigh up the advantages and risks of diving straight into the opportunity they present. Regulators are caught in the middle of these rapidly evolving trends and forces, attempting to stay the regulatory course by ensuring stability and security, while also motivated to remain at the forefront of this technology. Resilience has never been a more important focus for regulators, who are shifting responsibility directly onto market players to ensure strength across intertwined systems. Selecting a handful of areas tied to fintech that are either ripe for, or undergoing seismic regulatory evolution, we’ve compiled a wealth of insights from industry experts who have shared their views on the changes we can expect in 2022. This new Finextra report features commentary from industry experts across a breadth of financial, technology and regulatory firms, which include contributions from Accenture; A&O Consulting; Bird & Bird; Change Gap; Coutts; Herbert Smith Freehills; Hogan Lovells; Plaid; Proskauer; P2 Consulting; McDermott, Will & Emery; Noll Historical Consulting LLC; Société Générale; State Street; and The DPO Centre.

07 February 2022 1113 downloads

Report

Open Banking Europe 2022 - What’s next for Open Banking?

Since the European Payments Services Directive 2 was introduced in 2018, open banking has come to mean different things to different participants. Progress, innovation and developments have taken place at varying speeds with varying results. In financial services there has been a flurry of new participants- quite as per the intention of PSD2- and between these, the banks and the often-conflicting, sometimes symbiotic relationships that have emerged, the customer has indeed been the recipient of a richer choice of services and providers. But it is still more limited than it might be. The end user- be that consumer or business customer- has notions of the concept of open banking generally only in the form of new services now on offer. And they have become more attuned to the value and proprietary nature of data. The customer relationship has become the holy grail, and yet no financial service can be launched or be delivered credibly without the unfaltering robust protection and compliance that only licenced banking organisations have the wherewithal to provide. Hence the need to increase access to banking rails for Third Party Providers (TPPs). To this end there has been something of a stalemate, because for many banks, the value proposition is still unclear and the question burns brighter by the quarter- do the relevant bodies need to galvanise efforts by introducing stronger direction regarding infrastructure and accessibility? Download your copy of this Finextra report, produced in association with Worldline, which takes the pulse on the development of open banking initiatives from several stakeholders through one-to-one interviews to ascertain where the biggest opportunities lie now and, crucially, what it will take for them to be fully realised.

18 January 2022 1330 downloads

Report

Will banks use digital security as a post-pandemic differentiator?

Banks large and small, old and new, have come a long way in a short amount of time. Prior to the pandemic there wasn't a bank or financial services provider worth their salt who did not have some kind of digitalisation strategy as a core part of their operations planning. The onset of the COVID-19 pandemic catapulted banks and their clientele into instantaneous cashlessness, forcing many organisations and customers to adapt at speed. A year and a half on, how much of this urgent transition will remain permanent is a key indicator of financial organisations’ success in responding to an unprecedented situation. Furthermore, whether the key pillars of trust and security upheld by banks have not only survived but positively thrived such that they stand taller and prouder, will be a key differentiator in a thoroughly modern banking landscape. These factors will illustrate how consumers and the industry have truly evolved as a result of unimaginable change. We take a pulse on these themes and questions by interviewing senior experts at several banking service providers across Europe and Asia. Download your copy of this Finextra report, produced in association with Feedzai, to learn more.

17 January 2022 376 downloads

Report

Future-Ready Payments Solutions: Remaining competitive with reusable technology

Over fifty years ago, when the original payment pioneers built electronic funds transfer (EFT) platforms to enable card services, they had a single use in mind. Reliable and secure card payments were achieved, but the architecture was so closely bound to card transactions that it is now becoming incompatible with today’s colourful payment universe. As mobile and contactless payments, Quick Response (QR) codes, digital currencies, Request to Pay (R2P), Real-Time Payments (RTP), Buy-Now-Pay-Later (BNPL) and peer-to-peer (P2P) payment applications take off, banks are forced to build separate in-house silos, in order to process these new payment types. Given a plethora of dedicated systems are already in place to process cash, cheque and card payments, management of these silos and ‘add-ons’ is becoming a complex undertaking. Forward-looking banks are tackling this challenge by deploying modern payments platforms that are comprised of a set of re-useable services. These have the capacity to not only consolidate numerous payment schemes onto a single platform, but they can also future-proof businesses by facilitating easy adoption of new payment types. As the payments race heats up – and banks wrestle with the emergence of new digital currencies, payment instruments, funding methods and payment types – those with the most agile, secure, and reusable platform will be rewarded with a strong competitive edge and improved margins from being able to control when, how deeply and how long to take part in any new payments venture. Download your copy of this Finextra impact study, produced in association with Diebold Nixdorf, to learn more.

09 December 2021 788 downloads

Report

Building the Road to a Hybrid Cloud Future

A recent survey conducted by Finextra and Red Hat showed that 82% of the financial services respondents say they are embracing and implementing hybrid cloud infrastructure company-wide. Many are now deploying open source technologies to support and enhance the inherent capabilities of a hybrid cloud infrastructure, which include agility, resilience, portability, automation, speed to market and continual testing and iterative improvements at speed in isolated, protected environments. The open hybrid cloud adds interoperability to this, and is a factor cited by leading practitioners as increasing their ability to attract developer talent. These attributes, however, will mean very different things to different business stakeholders and will therefore be prioritised in differing orders by different business lines. Speed of development and speed-to-market will likely be of greatest importance to digital programme strategists and developers, whereas portability will be more important to someone leading system recoveries or performance outages, where operational resilience is key. Where these priorities conflict – or complement – each other needs to be identified and communicated to the board, for a cohesive, top-down strategy to be fulfilled with a consistent approach. There will be different challenges in executing that strategy across different parts of the business - there could be gaps in knowledge, understanding or expertise, hence where these challenges lie and for whom becomes a compelling question to answer. Overcoming different hurdles and identifying the different benefits is a key part of a strategy to fully realise the potential of cloud architectures. And all strategies need to take a long-term view – the migration from on-premise systems in bank-owned data centres to a cloud service provider and on through hybrid cloud environments is a dynamic culture shift rather than a quick decision to migrate a few workloads and reap the benefits. Financial organisations need to know and understand the value of what hybrid cloud can deliver to what part of their business and overall operations, and they need to identify the different gaps and challenges in order to achieve the required outcomes. It is no small journey or undertaking, but the benefits can be universally acknowledged as a clear incentive. This research paper from Finextra, in association with Red Hat, is based on several interviews with senior leaders from diverse areas of the banking business to explore and understand some of the key questions around hybrid cloud.

24 November 2021 252 downloads

Report

Continuous Reinvention: The holy grail of Digital Transformation

Driven by the uncertain macroeconomic environment - and remote working paradigm - that endured throughout the pandemic, the term 'digital transformation' has increasingly been grabbing headlines. Indeed, to stay afloat and remain competitive, financial services firms have been compelled to modernise their solutions. However, as is the case with any kind of technological innovation, infinite reinvention is key, and as such, structural agility has become critical to banks’ transformation strategies. For such a strategy to succeed, however, the migration of banks’ core systems to a resilient and scalable platform in the cloud is vital. To workshop these issues, experts gathered for a Finextra webinar, ‘Beyond 2021 – Why infinite reinvention is key to digital transformation’, in association with Amazon Web Services (AWS) and Capgemini. This impact study explores the findings of that webinar, and examines how firms should go about building an evergreen solution within a modern, cloud-based infrastructure.

03 November 2021 313 downloads

Report

Open Banking powered by the Cloud, Democratising Finance at Scale

As new business models emerge with recurring revenue in the innovative payments sector, traditional banks are looking to utilise open banking and open finance to assist with their digital transformation. Consumers need real-time, instant, and faster payment capabilities, and with open banking, PISPs are providing alternative methods of payments with a single API connection. Whether banks are providing alternative payments methods or not, this shift to a digital economy will continue and will result in an attraction to a platform where financial data can be used to offer value-added services to other industries. By utilising APIs, financial institutions can implement open finance solutions to improve the customer experience and offer customers greater product choice and control over their finances and data. With a cloud provider, customers can build APIs across multiple microservices that interact with third parties quickly and connect with them in a simple way. Fintech firms have developed open finance solutions that complement cloud-based open API platforms and provide the solutions financial institutions need. With the cloud, financial institutions can scale APIs on demand, pay only for what they consume, and build modern serverless architectures. Building open finance solutions on the cloud requires minimal capex and investing in this technology today will help financial institutions get a step ahead of industry peers. Download this Finextra impact study, in association with Amazon Web Services (AWS), to learn more.

28 October 2021 546 downloads

Report

Core Banking on the Cloud - The Catalyst for Innovation, Agility and Efficiency

Traditional core systems that assume a branch interface and retain human-led back offices no longer meet needs. To be truly agile, banks must prioritise interoperability and automation through digital channels to stay competitive and avoid irrelevance. With this focus on digital transformation and initiatives such as open finance, banks are adopting a buy approach to software and infrastructure, especially when running core business applications on the cloud. Today, banks do not have to build customised software when providers have plug and play solutions readily available. Software providers have historically deployed a maintenance model where their customers opt for per-user licenses for a particular service. Now, with SaaS, software can be centrally hosted and delivered through the cloud. In addition, many providers are leveraging AI and ML capabilities, and embedding enhanced omnichannel features. This enables banks to optimise, tailor and deliver consistent customer experiences across digital channels, remove friction, and develop deeper trust. As new technologies open up data streams to and from third parties and emerging startups, banks will be able to offer their customers a range of new products, services and insights that will not only optimise customer experiences, both online and offline, but will create highly personalised, customised relationships. Download this Finextra impact study, in association with Amazon Web Services (AWS), to learn more.

07 October 2021 534 downloads

Report

Prepare to Choose: 4 factors Banks must assess before committing to a SaaS Provider

Most banks' digital transformation journeys are well underway, and the need to now deliver on their strategy milestones means that time is of the essence. A recent survey by The Economist Intelligence Unit (EIU) and Temenos found that just under two thirds of banks see new technologies as the greatest driver of change for the next four years, up from 42% from three years ago. While the momentum toward digitalisation of financial services has grown significantly during the past 18 months, financial institutions are increasingly recognising the value of Software-as-a-Service (SaaS) solutions in delivering new products and meeting customer expectations. Central banks are also increasingly showing their appetite for and recognition of the fundamental role of cloud-driven SaaS solutions in financial services. In mid-2020 the Bank of England announced its search for a technology partner to help build out its public cloud platform, while the Bundesbank recently began encouraging German banks to focus and adopt SaaS solutions enabled by cloud computing. Banks have refined their SaaS strategy beyond non-core offerings such as payroll or HR-related tools into more comprehensive, cloud-centric strategies. Covid-19 has served to accelerate adoption in core banking technology. SaaS is attractive to financial institutions looking for fast, agile solutions, because they are able to consume the required service instead of having to buy, install and maintain a suite of software independently. Rather than building in-house, financial organisations are looking specifically for resources that will speed up their attempts to innovate and scale at pace, and engender independence where suitable, all the while bolstering compliance regimes from the heart of operations throughout its entire API network. In order to have confidence that the correct SaaS provider is being selected, it is vital for banks to drill down and assess the factors which make SaaS attractive from a business perspective in the long and short term. Banks must consider whether its core offering will enable business continuity, optimise business outcomes and help the bank reach its regulatory obligations. Above all else, SaaS providers must provide certainty that their solution will not hinder or threaten business functionality in any way. This Finextra impact study, in association with Temenos, will outline four fundamental factors for banks when considering a SaaS solution, in order to position a financial institution’s business offering for success.

22 September 2021 513 downloads