PHOTO - James Hatcher, Managing Director, SEEBURGER APAC
Financial services organisations place tighter data integration as one of their priorities, according to German-based software firm SEEBURGER, which recently established its regional centre in Malaysia.
Speaking during the Vietnam Finance 2012 forum on 28 September 2012, enterprise class managed file transfer (MFT) firm SEEBURGER's APAC managing director James Hatcher said: "This information is based on SEEBURGER's customer reference data that indicates that financial organisations' business drivers boil down to the ability to reduce costs, focus on core (banking) operations, and to reduce risk via better data security."
Hatcher says the one common challenge in meeting these three business drivers is the issue of data integration.
"Almost all banks, like a typical financial organisation, face the legacy issue of having to deal with many silo-ed, or disparate systems," he said. "Even today, a lot of data is captured at different sources and remains 'stranded on data islands' within the different systems where they reside."
"Firstly, core banking systems are designed to last at least 10 years before replacement, and we are in the current era where many ASEAN banks have reached the second cycle for replacement," said Hatcher.
"Secondly, is the pressing demand for Web-based banking solutions. In trying to keep up with the rapid evolution of Web-based banking products and services, many organisations are struggling with how to deliver tight data integration at the solutions' backend without hard coding," he said. "Hard coding interfaces compounds the enterprise level integration scenario when you look at modernising a financial infrastructure."
"Thirdly, next-generation applications such as advanced customer relationship management (CRM) and business analytics systems are resulting in multiple databases for the same customer accounts. Synchronisation of master data becomes another business issue," added Hatcher.
Benefits from data consolidation
Hatcher said their study confirmed some of the benefits from successful data consolidation. "Based on our customer reference accounts, there is up to 96 percent reduction of expenditure related to search (i.e. document tracking); 65 percent cost cuts in implementing B2B/EDI interfaces; 60 percent in reduction of software maintenance fees; 50 percent in reduction of hidden operation cost and operation personnel; and 30 percent reduction in transfer fees."
"Similar to other ASEAN countries in ASEAN, Malaysia's financial organisations will continue to place data integration as a priority over the next 24 months," he said.
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