Vendor Highlight

Mobile Broadband Boost

As the demand for a smooth and seamless integration of Wi-Fi access becomes increasingly important part for the mobile broadband service, Ericsson has announced its 3GPP compliant Wi-Fi network access, control and management solutions.

Read more ...

Expert Talk

Securing Utilities Infrastructure

As a highly critical sector, the oil and gas infrastructure should be one of the most secure, both physically and digitally. This is not the case.

Read more ...

 

Current application portfolios are preventing banks from making the transformation they need to re-engage with customers and stakeholders, according to Gartner. Apps not applications enable a new style of engagement with customers — one that is focused on providing needs-based and context-aware services.

internetbank

 

“The banking industry has lost its way, both in the services it provides and its future profitability to stockholders,” says Kristin Moyer, research director at Gartner. “Banks need to transform their delivery models and architectures to remain profitable and relevant." 


The analyst firm says banks need to stop relying on reactive product delivery and start providing a delivery model transformation that uses public and private Web application programming interfaces (APIs) and apps. This new approach will enable banks to deliver needs-based services that are relevant to the context, location and technology customers are using, which will lead to proactive delivery that either anticipates a customer need or improves their financials. It will also allow banks to respond quickly to new opportunities, and third-party developers to build the banking solutions they need.

For example, a mortgage refinance app that, like a weather app, can indicate (without customer initiation) whether it makes sense to refinance a mortgage, given current interest rates. With a few more clicks, the customer could apply and then view the process steps required for the bank to complete the transaction. “This would be an entirely new way of banking, and if banks ignore this trends they will quickly find themselves relegated to low-margin, low-growth market segments and products that will no longer be profitable,” says Moyer.

Retiring redundant, monolithic applications is necessary to improve agility and efficiency, but also to prevent out-of-control complexity. The proliferation of apps will increase complexity, and if a bank already has substantial application redundancy, it will not be able to improve agility or efficiency by adding apps and APIs into the mix. However, APIs and apps can replace an application, or an app can call an application through an API or middleware layer.  

 

The biggest barrier to banking on APIs and apps is not technology. Security, scalability, performance, complexity, regulatory compliance and integration can be managed through careful IT governance, extreme reuse, service-oriented architecture governance, API management, and other best practices and technologies. Other barriers are more operational in nature - for example, the lack of a clearly defined design paradigm, governance model and accounting model, but the biggest barrier to platforms that provide private and public web APIs and apps, is the loss of control.

---Gartner


You have no rights to post comments