• New research reveals vast majority of Asia’s banks are operating on previous-generation technology, severely limiting their ability to innovate
• Thought Machine enables banks across APAC to move away from legacy platforms and adopt fourth generation core banking technology with its cloud native core banking platform Vault
• Thought Machine hiring across three continents, with Australia and Japan expansion planned for 2020

Thought Machine, the cloud native core banking technology firm with its APAC headquarters in Singapore, continues to make investments to help address an innovation gap in the Asian banking market and is one that needs to be filled, if banks which have not upgraded to the latest core banking systems are to remain competitive.

Approximately 95% of banks in Asia are using second and third generation banking technology, severely limiting their ability to innovate, while increasing their costs, according to an IDC sponsored report by Thought Machine entitled, Digital Core — Now Is the Time. With the average age of core banking technology in Asia at 20 or more years, the imposed technology gap for infrastructure is increasing banks Cost-to-Income (C/I) ratios by 3% - 5%. Limited ability to automate processes and decisioning adds another 4% - 7% to the C/I ratio.

Banks that are not ready to migrate to fourth generation organic digital core technologies are unlikely to meet their digitalisation objectives and will become vulnerable to acquisition by more digitally advanced banks in the next two to four years.

The major reasons banks are hesitant to replace and upgrade their core banking infrastructure to the fourth generation includes newly replaced core systems, resource constraints, and an (incorrect) assumption that digitalisation is fulfilled by the adoption of internet and mobile banking.

And while m...

Categories:

Keywords: