Change. The financial world is buzzing with it. With this buzz, banks think about how to leverage new technologies such as cloud banking, Internet of Things, smart appliances and API layers. They all seem rather important, and they are. Banks know they have to innovate in order to stay relevant to their customers, certainly in times like these when customer loyalty has become a thing of the distant past. But sadly for them, there seems to be no such thing as a simple upgrade path to make the transition to Banking 2.0 or 3.0. Challenges include compliance, security, legacy and old paradigms. Or is there?...
In line with current thinking, implementing a much more flexible Digital Banking Platform on top of Oracle FLEXCUBE can bring rapid returns. Five Degrees delivers such a platform. The strong executable workflow and orchestration capabilities allow banks to tailor services and products for their customers, with a consistent and seamless experience across all channels (A real Omni Channel experience). It also allows banks to increasingly integrate with third-party systems, a vital attribute when moving towards ‘marketplace’ or ‘open API’ banking, with even the possibility to white-label products and services.
Digital Banking Platform becomes the main customer repository, driving sophisticated CRM based on detailed data, and leaving the back office as increasingly merely the transaction and accounting engine. In this way, the scope of the Oracle back office ‘shrinks’ on a phased and manageable basis. Tangible business benefits are gained in a short time frame without the high-risk, high-cost multi-year ‘rip and replace’ projects of yesteryear.
It was this scenario where a Dutch leader in Online Savings selected Five Degrees’ Matrix Digital Banking Platform, on top of their Oracle FLEXCUBE set-up. With Matrix, the challenger bank adopted a clean three-layer architecture. Matrix runs the orchestration, business process management (BPM), CRM and document management. Oracle FLEXCUBE is responsible for the product administration and transaction handling. The bank has achieved impressive agility, resilience, operational cost reduction and an improved Digital Customer Experience.
Although most banks find their Oracle solution to be stable and probably the best choice at the moment of purchase, the demands of today’s marketplace are hard to meet. Oracle FSS, like most of the other traditional core players, typically lack agility and responsiveness required by their demanding and empowered customers. Not to mention the resulting relatively high total cost of ownership (TCO).
Matrix – Digital Banking Platform, newer than nearly all of the core systems by more than 20 years, is a next-generation solution that can breathe new life into Oracle core.