• Home
  • Why Attend
    • For Financial Institutions
    • For Fintech/Tech
    • For Talent
    • Our DNA
    • Contact
  • 2019 Highlights
    • Gallery
    • TOP 400+ FIs
    • Speakers
    • Festival Guide
      • 2019 Agenda
      • Download
      • Live Music
      • Craft Beer
      • Welcome Stage
      • Fintech Stories Stage
      • Strategy Stage
      • Build Stage
      • AITECHTalents – Discovery Day
      • RegTECHTalents – Discovery Day
    • Fintech Stories
    • Secret Shopper
  • Steer Co.
  • Partners
  • Prospectus
  • Insight
    • Awesome Stuff
    • FinTech Of The Week
    • Video Interviews
    • Video Testimonials
    • The Platform
    • Subscribe
  • Get Involved
  • Register

Fintech Talents

Fintech Talents

Kallyas is an ultra-premium, responsive theme built for today websites.

T (212) 555 55 00
Email: sales@yourwebsite.com

Your Company LTD
Street nr 100, 4536534, Chicago, US

  • Home
  • Why Attend
    • For Financial Institutions
    • For Fintech/Tech
    • For Talent
    • Our DNA
    • Contact
  • 2019 Highlights
    • Gallery
    • TOP 400+ FIs
    • Speakers
    • Festival Guide
      • 2019 Agenda
      • Download
      • Live Music
      • Craft Beer
      • Welcome Stage
      • Fintech Stories Stage
      • Strategy Stage
      • Build Stage
      • AITECHTalents – Discovery Day
      • RegTECHTalents – Discovery Day
    • Fintech Stories
    • Secret Shopper
  • Steer Co.
  • Partners
  • Prospectus
  • Insight
    • Awesome Stuff
    • FinTech Of The Week
    • Video Interviews
    • Video Testimonials
    • The Platform
    • Subscribe
  • Get Involved
  • Register

Content

STAY TUNED
  • Tweet
  • Share 0
  • Reddit
  • +1
  • Pocket
  • LinkedIn 0

FinTECHTalents 2018

FinTECHTalents is the only global platform focusing on the TECHNOLOGY side of Fintech – the origin of ideas, cutting edge innovation and the development of new products and services. This allows a view into a key stage during product innovation; the point at which regulatory frameworks should be considered and that knowledge hard-wired into product development.

REGISTER NOW

The Cost of Core Fitness

by FTT Team / Friday 12 January 2018 / Published in Employment
Engaging with tech

As the cost of technology falls and the regulatory environment (certainly in the UK) becomes more welcoming of newcomers, the competitive dynamics of the banking sector are starting to shift. But banks also face internal challenges. Not only are their legacy systems outdated, their very design was driven by the dynamics of a structurally different age. At retail banks, those systems were set up to underpin branch banking and batch processing. Now customers expect 24/7 personalised service across a range of channels. Delivering that, and keeping pace with the competition, requires very different back-office systems and profound cultural change.

A University of Surrey report, supported by Accenture, Escaping Legacy: removing a major roadblock to a digital future, estimates that 40-50 per cent of technology in retail and investment banking needs urgent updating. A challenge, the report notes, that has been made all the more pressing by Brexit. To be fair, banks recognise the importance of updating their technology to compete in this changing environment.

The awareness that they are now, effectively, technology companies has been reflected in expenditure. Recent estimates from Citi analysts note that banks spend around $200bn a year on IT; although 80 per cent of that goes on maintaining and building proprietary systems. The question is how that will evolve and what it will mean for employment.

Anne Boden, chief executive of Starling Bank, who built a full stack bank from scratch (on the cloud), forecasts significant jobs losses. She says that Starling works on the assumption of automating everything. She predicts job losses of 25 per cent overall at retail banks when technology migration eventually happens. A recent McKinsey report, Cognitive Technologies in Capital Markets, which focuses on investment banking, estimated that 30 per cent of the current workforce’s responsibilities could be automated. But it was optimistic about overall employment levels, noting the freeing up of resources to take on higher-value tasks.

Keith Saxton, an independent director and adviser with a long track record in the tech sector, says: “IT infrastructure jobs may move from banks to technology providers, but the absolute need for technologies to be embedded in the business is likely to offer significant employment opportunities.”

FinTECHTalents 2018

FinTECHTalents is the only global platform focusing on the TECHNOLOGY side of Fintech – the origin of ideas, cutting edge innovation and the development of new products and services. This allows a view into a key stage during product innovation; the point at which regulatory frameworks should be considered and that knowledge hard-wired into product development.

REGISTER NOW

It may be that jobs losses will hit large swathes of operational staff across a range of functions. But Mukul Agrawal, director and solution lead – core banking and digital – at Finastra, the fintech company, says: ”The primary objective for installing modern core banking technology is to improve the bank’s bottom line by boosting customer experience, accelerating growth and injecting innovation. Reducing cost is a secondary objective.”

Agrawal adds that because modern technology reduces the manual effort required for repetitive tasks, the manpower released from day to day operations can be used in the front office as customer advisers to support more sophisticated products, which have been made possible by the new technology. “As a result,” he says, “we are seeing a shift in skill sets which increase value for the bank, rather than a net loss of headcount.”

Given the size of the task and the challenges remaining for incumbent institutions, more needs to be done when it comes to updating core systems. A big hurdle is cultural. Accenture notes that the challenge in a period of change is in having a workforce that understands the old systems and can help create/buy the new components needed. What Accenture does not mention is that people who understand both old and new, even if they can be found, are not necessarily motivated to undo existing structures and working practices.

They may have a reason for some foot-dragging. Ralph Hamers, chief executive of ING, quoted in the Financial Times, said: “I do think employment in finance will decrease and those people working in the industry will be doing very different kinds of jobs.”

Given that ING announced cuts of 7,000 to the bank’s 54,000 staff last year as part of its digital transformation strategy, a focus on digital paints a different picture of the future of banking. As Boden notes, Starling runs a bank with only 120 people. The question is whether it could really scale up to compete with the big four banks with a small staff. We may soon find out.

  • Tweet
  • Share 0
  • Reddit
  • +1
  • Pocket
  • LinkedIn 0

FinTECHTalents 2018

FinTECHTalents is the only global platform focusing on the TECHNOLOGY side of Fintech – the origin of ideas, cutting edge innovation and the development of new products and services. This allows a view into a key stage during product innovation; the point at which regulatory frameworks should be considered and that knowledge hard-wired into product development.

REGISTER NOW
Tagged under: Splash

Recent Posts

  • Opening the Door to Financial Inclusion with Digital Identity

    Despite decades of financial inclusion efforts,...
  • Digital Builder

    Welcome to the Age of the Digital Builder

    We sat down with Ian Johnson, Managing Director...
  • Reasons to be cheerful #1 for 2021 – Open Finance Content Now Available On-Demand

    Whilst most of us have no desire to return to 2...
  • digital bank simple

    Will lending bring the disruption we’ve all been waiting for? – The FTT Lending 3.0 Big Question Debate

    Over the weekend, many in the FinTech Twittersp...
  • How Open Banking Will Take Off – An Interactive Session with Yapily

    One of the highlights from the recent FinTECHTa...

Insights, interviews & interesting stuff

SIGN UP

Learn more about our community & events

LEARN MORE

FTT20 - the ultimate FinTech Festival

GET INVOLVED
  • Tweet
  • Share 0
  • Reddit
  • +1
  • Pocket
  • LinkedIn 0

FinTECHTalents 2018

FinTECHTalents is the only global platform focusing on the TECHNOLOGY side of Fintech – the origin of ideas, cutting edge innovation and the development of new products and services. This allows a view into a key stage during product innovation; the point at which regulatory frameworks should be considered and that knowledge hard-wired into product development.

REGISTER NOW
  • Home
  • Virtual Experiences
    • FTT Identity 2021
    • FTT Lending 3.0 2021
    • Fintech Talents North America 2021
    • Fintech Talents UK & EU 2021
    • FTT Building Societies 2021
    • Fintech Talents Nordics 2021
    • FTT Open Finance 2021
  • Hybrid Festivals
    • Fintech Talents London 2021
  • On-demand Content
    • Interviews
    • Opinion
    • Videos
    • Digital reports
  • VC INNOVATIONS – Accelerated Marketing

GET IN TOUCH

T 0208 0045 517
Email: info@vcinnovations.co.uk

VC INNOVATIONS
21 Bloomsbury Square, London, WC1A 2NS

Open in Google Maps

QUICK LINKS

  • Home
  • Partners
  • About
  • Insight
  • Contact Us
  • Register

Connect with us


RECENT POSTS

  • Opening the Door to Financial Inclusion with Digital Identity

    Despite decades of financial inclusion efforts,...
  • Digital Builder

    Welcome to the Age of the Digital Builder

    We sat down with Ian Johnson, Managing Director...
  • Reasons to be cheerful #1 for 2021 – Open Finance Content Now Available On-Demand

    Whilst most of us have no desire to return to 2...
  • Privacy Policy
Fintech Talents

© FinTECHTalents 2020. All Rights Reserved.



TOP

This website uses cookies to give you the best experience. Agree by clicking the 'Accept' button. Read our Privacy Policy.