Blog: Fintech technologies won’t deliver bank value unless fully integrated
By: Tim FitzGerald, InterSystems
To remain competitive and enhance performance, Financial Services organizations are increasingly under pressure to innovate and develop products and services faster while still leveraging their existing resources.
For the majority of Financial Services institutions, leveraging external fintech solutions has been the path to accelerate innovation and a way to quickly obtain new digital capabilities and launch new solutions. Over the past 3-5 years, Fintech partnerships have evolved from technology experiments to become critical components of financial institutions’ growth strategies
To ensure success, financial services organisations need to be able to easily leverage and provision new fintech services and applications and to seamlessly integrate their existing production applications and data sources with these applications. However, the value of that technology won’t be realised unless that integration is done quickly and easily.
All too often the value of an initiative like this is diminished and sometimes lost if the integration is arduous and costly. IT resources get bogged down in unforeseen issues, projects spiral out of budget, timescales slide far further than was originally envisaged or what is desirable and often the competitive edge is lost when other players bring to market something similar to your vision but months sooner.
By their nature a fintech’s technology will be new. It will have embraced modern technology, modern application methodologies and deployment platforms. All this has to be woven into what the bank already has, some of that will be new, some of that not so….and some of it positively ancient. Skills are required to know the intricacies and idiosyncrasies of the bank’s legacy architecture. Knowing not only the legacy systems, the underlaying data architecture and how to connect this new technology to something that was never designed to be connected to in such a way. This isn’t an unsurmountable problem, but it will take resources, budget and time. Also, a careful consideration is needed in doing the integration as not to create an architecture so complex, with multiple layers of technologies from different vendors, all with differing versions and releases that any future change, (and change will indeed be inevitable and necessary at some point in time), that the agility of the bank to take advantage of new market opportunities or respond to regulatory requirements isn’t impeded. When data is required from an existing system(s) to feed the new system that has to be delivered in a certain format it’s all too easy to layer extraction tools, upon transformation tools, upon data lineage tools, upon master data management tools, upon databases, upon data warehouse/data lake technologies, storage volumes….etc, etc and create this multi-headed monster that no one person truly understands, other than perhaps the systems integrator firm that you employed that rubbed their hands in glee at the prospect of a long, complex and drawn out engagement at a nice lumpy contract or daily rate. It’s costly to design, costly to deploy, manage and maintain.
What can be done to overcome these challenges?
InterSystems brings to the market the InterSystems IRIS™ Cloud FinTech Gateway.
By leveraging the next generation architecture – a Smart Data Fabric that is able to connect and collect real-time event data and unmatched integration capabilities all in one holistic platform ensures faster time to value and simpler implementation that is easier to maintain.
A dynamic real-time, bidirectional gateway between cloud-based fintech applications and customers’ production applications and data assets. InterSystems IRIS Cloud FinTech Gateway provides seamless, real-time, bi-directional connectivity and integration with a firm’s existing legacy enterprise data, production applications, and data sources. It integrates real-time event and transactional data, along with historical and other data from the large number of different back-end systems in use by financial services organizations, and transforms it into a common, harmonised format to feed cloud fintech applications on demand. InterSystems IRIS Cloud FinTech Gateway provides bidirectional, real-time, consistent, and secure data sharing between fintech applications and the organisation’s production applications.
Incorporating cloud-native fintech applications into an institution’s production environment, InterSystem’s Cloud Fintech Gateway Solution helps firms empower innovation, innovate faster and keep critical initiatives on track.
You can read more about it hereI am happy to discuss this with you personally if you would like to message me here
This article was originally published on Medium by the InterSystems Publication on July 18, 2022.