Modernising retail banks’ infrastructure is so time consuming and expensive that many will look to migrate customers to new digital subsidiaries, according to Tim Hooley, chief technologist, EMEA Financial Services at Red Hat.
“If you have monolithic software you cannot be innovative,” said Hooley, who was speaking on the side lines of Sibos in London last week. “They are leaving their old banks in place, with their old software, and most of them are hoping I think that their customers – and you’ll have to forgive me for saying this – will either die off, or open new accounts with their new banks.
“They are never going to upgrade their old systems because they are too expensive. Their data centres are hugely expensive, they’ve got thousands of developers, they’ve got thousands of operations people doing the data reconciliation between all of the different data sources that they’ve got.”
