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NEWS
that gives it the credibility more than somebody who’s net new to the market or is not generating revenues today.”
Indeed, the open source business model itself is likely to be one of the greatest challenges for new entrants vying for a slice of the payments pie. The big winners will need to be flexible in how they drive revenue. “If they can’t make it work commercially they’ll go back to the drawing board and say, ‘there’s value in giving this away for free because all of the other work and revenues that can arise from that.’ If you can embed yourself in the payment flow of a FinTech or a large bank, that potentially is a long-term role; people are very reluctant to change these components once they’re in,” says Burrows.
“If you can get yourself embedded in a bank for the next
five or ten years, being a critical part of their payment system, you can actually generate good revenues off the back of that, not from the software itself but from support, integration, consultancy and all those other areas.”
Getting those first few implementations under their belt will be critical for open source challengers, Burrows adds. “If open source hasn’t been used in a particular area before, people will naturally be quite nervous and not touch it. But if the suppliers can say, ‘Santander have already used it,’ it’s much easier to then justify using it.”
Simester has similar advice for open source payments players. “Start picking up very small bits of very big businesses or find a niche, go for it, and be extraordinarily good.”
Virgin Money builds digital bank with 10x
its platform will help Virgin Money offer rapid, cost- efficient customer services as it sets about launching a “modern, future-proof digital bank”.
core banking firm set up by ex-Barclays Chief Anthony Jenkins, has been signed on by Virgin Money. 10x has yet to even announce the name of its offerings, but will be delivering a cloud-based digital banking platform to Virgin’s developing financial wing. The solution will be used in the provision of savings, mortgages, credit cards, current accounts and investments. 10x believes
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“Virgin Money is highly regarded for offering customers an outstanding banking experience and we’re proud that the bank has chosen us to boost its digital capabilities to build on that,” says Jenkins, Executive Chairman at 10x Future Technologies. “Our advanced data modelling and database design will help to develop an even deeper understanding of each individual customer and offer cutting-edge services for the digital age.”
x Future Technologies, the new
Virgin Money CEO, Jayne-Anne Gadhia, adds: “10x Future Technologies is the perfect partner for us, providing us with advanced technology to build a truly digital banking platform and provide an even better banking experience that will be faster, easier to use and more cost-efficient.”
Alex Hamilton
www.ibsintelligence.com © IBS Intelligence 2016
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