This is an excerpt from a transcript of The Axway Blog Team’s podcast, “Key takeaways of the ‘Speed to Revenue and Improved Customer Service’ white paper.”
ANNOUNCER: Hello everyone. The Axway Blog Team recently had a chance to catch up with Peter Benesh, Axway’s director of solution marketing for the Financial Services industry, and ask him to share his thoughts on the key takeaways of the IDC Financial Insights white paper titled “Speed to Revenue and Improved Customer Service: How Data Agility Underpins Success for Financial Institutions in the New Digital Economy” by Alex Kwiatkowski. Key Takeaway 3: Established banks and insurers must remain vigilant and alert to the threat of disintermediation posed by alternative providers unencumbered by legacy IT and possessing inherent data savviness. Institutions will avoid disintermediation by collaborating more with other members of the financial services value chain, including a degree of coopetition.
PETER BENESH: The legacy IT, I think, would be… A lot of banks still run a lot of their backend systems on main frames. A proprietary technology. Applications that they may have developed themselves. Architectures that are very closed and proprietary and very difficult to open up and share information with other apps, especially in a B2B environment outside of the organization’s firewall. Newer players that are involved in payment facilitation — I’ll just use PayPal as the best example of this, probably the one that’s most well-known. Google digital wallets, and so forth. There’s been a lot of hype about that. I can’t remember where I saw it, but I saw a statistic that in terms of actual adoption of a digital wallet, it’s still fairly low, but definitely most people should be familiar with how PayPal works. That’s basically an alternative to buying something and having to put in your bank routing number and your account number and telling the vendor to go find your account at your institution and pull money from it. PayPal just provides a much faster and simpler way to do that, to the extent that normal banks can’t compete with that. Again, they’ll be disintermediated. They’ll lose business from an electronic payment standpoint if they can’t be flexible and open like PayPal is.
To download the white paper, click here.
To listen to the podcast on YouTube (audio only), click here.