The point of no return for legacy systems

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Keith Saxton, Chair, techUK Financial Services Council, at “Banking on the Future”, a seminar produced by Fiserv, Innovate Finance and techUK, talks about how the problem of banks’ legacy systems is not going away and must now be dealt with, and looks at some alternatives to rip and replace strategies, including exploiting the ‘as a service’ model and open APIs, and exploring new opportunities for utilities for non-differentiating activities such as reference data, account opening and aspects of regulatory compliance.

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Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

Open system vendors are at least partly responsible for the inability of banks to shutter down their legacy systems:

6 Reasons Why Banks Can't Transform Legacy Applications

Why Banks Can't Transform Legacy Applications - Part 2

On another note, we've been hearing about shared service utilities for KYC, AML, etc., for several years. IMO talk will turn into fast-paced action only when a central agency - aka "scheme" - takes the initiative to set up utilities. On the face of it, this should be a great opportunity for fintech but fintech nowadays seems to require VC funding and VCs are loath to fund B2B startups, which is what this would be.