The challenge for many financial organisations, when enhancing digital services, is that the well-established portion of the financial industry, much like the global public sector, remains awash with legacy systems born during the first financial tech revolution of the 1960s and 1970s. These systems continue to support business models built well before the internet; when consumer banking was provided by branches and ATMs. It is estimated that over 70 per cent of global transactions are ultimately processed by mainframe applications running on COBOL code, many of which were written over half a century ago. Against this backdrop, born-on-the-web FinTech competitors continue to gain market share over traditional players, energised by systems that have open-source and the cloud at their core.
by Dan Pickles