IBS Journal May 2015
Oracle Industry Connect: what’s in store for banks?
Promises to improve Oracle’s sale processes, a strong commitment to R&D, calls for ‘aggressive innovators’ and a guide on how to court the millennials – all this and more was discussed at Oracle’s recent annual gathering in Washington, DC.
What should banks be concerned with today, what action should be taken and what are the considerations for the future? Oracle’s CEO, Mark Hurd, addressed the industry at Oracle Industry Connect in Washington, DC. ‘Our customers want simplicity,’ he stat-
ed. This cuts across all verticals and this is what Oracle wants to address. What is the solution? It is, unsurprisingly, the cloud. And even though some industries are yet to embrace it, the vendor’s cloud business is growing at an astonishing rate, with Hurd citing a growth figure of ‘over 100 per cent’ and no slowdown in the growth rate either. ‘As a rule, once the business really starts growing, the growth rate goes the other way, but not in this case.’
For those who are not yet ready to go
to the cloud, there is a ‘gentler’ SaaS option, and there has been a notable shift towards outsourcing even among the most con- servative of banks. Oracle can showcase Hampden & Co as an example, with this UK-based private bank going for a hosted version of the vendor’s core banking sys- tem, Flexcube. Componentisation is another area to
explore, and here Oracle’s financial servic- es unit claims to be ahead of all its peers, with the launch of Oracle Banking Platform (OBP). Mark Atherton, group VP, Finan- cial Services Business Unit, emphasises that whilst other vendors might talk about modularity, none of them can boast a true, completely standalone use of components.
Large banks around the world are not going to ‘rip and replace’ any time soon, as it is too costly and too complex, Ather- ton said, but what they can do is gradual- ly extract various functionalities from their legacy core systems and transfer them to flexible solutions/components of the archi- tecture, so that eventually the core system becomes a pure-play GL and nothing more, and this is much easier to replace if/when the time comes. An early taker of one component of OBP is Keybank, a sizeable regional FI in the US. Whilst there are no plans to replace the core software, the bank is keen to modern- ise its channels, and this where OBP comes in, acting as an orchestration layer, pulling all the necessary data from the back office
‘Show us an aggressive innovator and we’ll help them to get where
they want to be as fast as we can.’ Mark Hurd, Oracle
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© IBS Intelligence 2015
www.ibsintelligence.com
conference report
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