This is part 3 of a 3 part series about innovation in the FSI sector. If you have not read them already, don't miss part 1: Asia's Most Innovative FSI Services and part 2: Best Practices Implementing Cutting Edge Tech in FSI
FSI organisations are under immense pressure to modernise their products and services in response to competition within the sector and disruption from non-traditional organisations entering the space. Yet they are encumbered by their outdated and complex legacy systems, which hold them back from innovating at the same pace as their competitors. To learn how FSI organisations can tackle this challenge and drive innovation, we speak with innovation expert Thunaiselvam Ramasamy, Chief Architect at Juniper Networks.
As touched on in our earlier articles, consumers are increasingly being draw towards newer non-traditional players due to the levels of convenience and efficiency that often accompany their services. Some of the most notable examples of these new disruptive players include:
- Fastacash: A global social and mobile payment platform that facilitates the remittance of money, airtime or vouchers instantly over social media channels to anywhere in the world.
- Neosurance: The first virtual insurance agent that sells highly personalised micro policies to consumers via push notifications, according to an individual's location, behaviour and needs.
- MatchMove Pay: A FinTech company that offers a customisable platform which allows any company to easily set-up their own a fully branded, secure mobile wallet solution.
However, unlike these new players, major banks struggle to innovate at the same pace, largely due to the complexity and inertia generated by their legacy systems.
Historically these systems were developed layer upon layer of proprietary technology simply because other suitable and customisable options were not available. As a result, many major FSI organisations are burdened with vast in-house IT applications and infrastructure which have been patch-worked together. This creates difficulties in servicing, programming and upgrading various applications, especially as they become otherwise obsolete, which encumbers the organisation, preventing it from modernisation and innovation.
"It's not unusual for a FSI organisation to have around 9000 - 10,000 different applications and in the case of a large bank like Citi, it might be even higher," says Thunaiselvam Ramasamy, Chief Architect at Juniper Networks.
Image: Thunaiselvam Ramasamy, Chief Architect, Juniper Networks