Innovative banking solutions provider to reveal what banks need to do to stay profitable in the age of digitization at the Banking Technology Summit this month.
Cairo, Egypt, Banks’ aging IT environment is inappropriate to today’s banking challenges, according to banking solutions provider Temenos. Speaking ahead of the 4th Annual Banking Technology Egypt Summit, set to take place in Cairo from November 8th – 10th, Temenos stated that the real threat to banks comes from their ageing IT systems, which are built around accounts and products, not people.
Aaron Phethean, MarketPlace Director at Temenos, will be speaking to CIOs among Egypt’s top banking institutions at the Summit about the questions investors will start asking banks regarding what they are spending their IT budgets on with an eye on the future.
“Banks spend twice the industry average on IT, even more than the telecom sector,” he said. “Investors have started to ask what banks are spending their IT budgets on, and they will make their investment decisions accordingly. The systems banks use were built for 9 to 5 branch banking. They were also built for specific purposes – term deposits, standing orders, credit cards, etc. without regard to the holistic customer relationship.”
According to Celent, the cost of maintaining ageing legacy systems eats up more than 75% of banks’ IT budgets.
Phethean added: “Banks have huge risk and complexity. They are also challenged by scalability. Systems cannot keep up with the exponential growth in volumes. As banking evolves into a digital service, consumer interactions are increasing. Ageing IT systems can’t provide the rich banking experience that customers want. Customers, , want their bank to perform the role of infomediaries helping them make intelligent and better informed financial and commercial decisions. To achieve this, banks need modern architected, integrated and real-time systems with exceptional user experience”
There are 8 financial institutions in Egypt that are customers of Temenos and are running or implementing their flagship core banking system Temenos T24.
Aaron Phethean will be speaking at the 4th Annual Banking Technology Egypt Summit at the Nile Ritz Carlton, Cairo on Monday, November 9th at 1:30pm.