Translated by
2019/07/11 14:48:12

Trends of bank informatization

Article is included into the IT overview in banks 2018

Content

2019

API of European Banks were not ready to fulfillment of requirements of PSD2

On July 10, 2019 it became known that against the background of rapid approach of the date of entry into force of the normative technical standards (Regulatory Technical Standards, RTS) which are the cornerstone of Payment Services Directive, representatives the Swedish of the open bank Tink platform say that the European credit institutes did not manage to provide to third-party suppliers the technology environment necessary for access to payment to data as that is required by the appeared law.

European Banks were necessary to open access to the industrial API by June 14, 2019 – in three months prior to entry into force of RTS.

To check the level of readiness of banks, specialists of Tink tried to integrate in 12 markets 84 API representing 2500 banks. Though by June 14 69% of industrial API were available, the quality of any of them was not recognized to the conforming mandatory normative standards for integration.

Representatives of Tink note that banks positively react to notes and show readiness to improve a situation, but at the same time predict that the third parties if they are going to offer in September to end users uninterrupted service, it is necessary to rely on the methods provided by PSD2 for contingencies now.

Tink urges regulating authorities to prolong the term set for a transient period to give to banks time for reduction of their API in compliance with the standard.

«
Considering that till the moment when each financial institution in Europe has to conform completely to normative technical standards of Directive PSD2, there are less than three months, this disturbing news. In spite of the fact that both parties try to meet the allotted deadline, TPP across the whole Europe remain in ignorance. Existence of unresolved questions – for example who will be exempted from support of the fallback mode and when these exceptions are entered – mean that before them there is a problem of an adverse working environment. All are interested in that end users could continue to use after September 14 services to which they got used, and in providing successful implementation of Directive PSD2 and ideology of Open Banking,
told Tomas Prochazka, the Vice president[1]
»

Banks for 3 years spent $1 trillion for IT, but did not see splash in revenue

In the middle of June, 2019 Accenture published the report according to which $1 trillion invested by traditional banks worldwide for the previous three years in information technologies did not bring the expected revenue growth yet.

The consulting company analyzed data more than 160 largest banks in 21 countries. Comparison of financial performance and progress in the field of technologies was a research purpose. Analysts of Accenture calculated that retail and commercial banks spent more than $1 trillion for development of IT taking into account staff expenses, the software and services worldwide.

Analysts recommend to banks to focus on receiving bigger income at adoption of the risks connected with interest rates and the credits
Analysts recommend to banks to focus on receiving bigger income at adoption of the risks connected with interest rates and the credits

But only 19 banks from among analyzed could change the digital strategy so to earn a deserved reward. Analysts of Accenture found out that banks which promoted in the field of digital technologies further really were the most profitable, but this profit was caused by cost reduction, but not revenue growth.

All studied banks in 2011 began with approximately identical return rates of the capital, but by 2017 share yield of banks which Accenture identified as "focused on digital technologies", grew by 0.9% whereas share yield of uninterested banks in IT decreased by 1.1%. Analysts of Accenture consider that the gap will continue to increase till 2021. However, profitability in average bank group changed slightly.

The senior managing director of Accenture and the head of its international bank department Alan McIntyre considers that banks hoped for other results. Creating better digital products and providing to clients convenient virtual environment, investors expected to increase significantly profitability of banks, having been equal to technology advanced competitors and major non-financial companies.

Researchers drew a conclusion that banks continue to allocate huge amounts of money for an overhaul of the old technology systems. Though analysts of Accenture did not turn on names of the studied banks, Makintayr told that the number of 19 banks, in the greatest measure focused on digital technologies includes JPMorgan Chase. The largest bank JPMorgan of the USA was the leading sponsor among financial companies in a race of technology arms. In February, 2019 the company stated that it is going to increase the IT budget by $600 million so the total sum will reach $11.4 billion. However the good digital offer is not enough to interest clients, Makintayr considers. If banks do not change approach to digitalization, "the industry finally will become more similar to municipal service".

Banks continue to allocate huge amounts of money for implementation of new technologies and for offering more digital services, trying to meet customer expectations which got used to the convenience offered by the technology companies. Analysts of Accenture do not depreciate investments into technologies, but note that cost reduction – only the first step which banks need to make to become more competitive in the changing environment.

Accenture reports that $1 trillion invested by traditional banks worldwide for the previous three years in information technologies did not bring the expected revenue growth yet
Accenture reports that $1 trillion invested by traditional banks worldwide for the previous three years in information technologies did not bring the expected revenue growth yet

According to the report, the digitalization of cash flows can lower revenues of banks from sales charges, for example, from the fact that clients pay for consultations or transactions. Analysts recommend to banks to focus on receiving bigger income at adoption of the risks connected with interest rates and the credits. Besides, it is necessary to create a new revenue stream in the areas other than traditional banking sector.[2]

CIO of Promsvyazbank Sergey Pegasov on TAdviser SummIT - about what trends influence development of IT strategy of banks

The head of directorate of information technologies Promsvyazbankasergey Pegasov, speaking at the TAdviser SummIT conference on May 29, 2019, shared the vision of the technology trends influencing the IT strategy of the companies, first of all, of banks.

Sergey Pegasov on TAdviser SummIT on May 29
Sergey Pegasov on TAdviser SummIT on May 29

Sergey Pegasov noted that when developing IT strategy it is necessary to define a target picture where it is necessary to move. If it is wrong to make it, then by the time of completion of implementation of IT strategy it is possible to find out that the created systems already are outdated.

«
The modern bank is, by and large, the IT company. – Sergey Pegasov stated. - Everything that becomes anyway is connected with technologies, their development. If today we incorrectly estimate where to move, we will not get any competitive advantages. We should understand trends, advantages, to look forward and see where we will come when strategy takes real shape. It is necessary to take the lead.
»

At the moment banks aim to implement systems which allow them to collect the maximum amounts of data about the client and on their basis to provide for him the maximum level of the offer which he expects, in all canals. Who will be able quicker to offer it, that "wins" the client. Therefore simple implementation of new technologies does not bring any more that effect which it brought a few years ago, more complex approach is required now, marked out Pegasuses.

Slide from Sergey Pegasov\'s presentation on TAdviser SummIT
Slide from Sergey Pegasov's presentation on TAdviser SummIT

Proceeding from it, the main priority when developing strategy, according to the speaker, – synergy of different technology trends. Only it can bring long-term competitive advantages. For example, this simultaneous implementation of colloquial interfaces for customer interaction, the digital payment adviser, open bank platforms, use of the regulatory technologies helping to optimize activity.

In terms of technologies when developing IT strategy in general for the company it is important to define what role at it, as she sees herself. Some companies, for example, are able to afford and aim to get to category of innovators. They place emphasis on adaptation of technologies to which the attention in the market only just appears. There are also other companies – in category catching up, implementing already checked, working solutions. This approach, undoubtedly, cheaper and less risky.

Among key trends of digitalization the speaker called creation of an internal ecosystem of the company which would include clients and partners that assumes consolidation of all products and services.

One of the basic moments with which it is necessary to begin consideration are open banking systems, microservice platforms and platforms with open API. It allows to conduct development on Agile methodology that, in turn, positively influences time of an output of new products and services for the market which is critical for banks. Also it provides higher adaptability of technologies and cost reduction.

Slide from Sergey Pegasov\'s presentation on TAdviser SummIT
Slide from Sergey Pegasov's presentation on TAdviser SummIT

Having something in common from the beginning of a performance, Sergey Pegasov emphasized that important initially to draw target architectural option to which it is necessary to come that in 2-3 years the architecture remained relevant, Sergey Pegasov told in conclusion. It assumes existence of omnichannel solutions with the round-the-clock providing services, VPN engines, a uniform analytical layer.

Slide from Sergey Pegasov\'s presentation on TAdviser SummIT
Slide from Sergey Pegasov's presentation on TAdviser SummIT

About TAdviser SummIT


TAdviser SummIT took place in Moscow on May 29, 2019 and attracted more than 600 participants - heads and experts of IT departments of the largest companies and the state departments of Russia, representatives of IT developer and contractors. During the action the prospects of digital transformation of business and state agencies, development of technologies, products and services were discussed. In a plenary part and five thematic sections more than 70 reports were heard. The action took place Sokolniki in 5 halls of Holiday Inn.

Accenture selected 5 key trends in digitalization of banking business

The Accenture company conducted the global research Banking Technology Vision 2019 in which top managers and IT heads of 748 banks from 30 countries of the world participated. The vast majority of respondents (96%) of respondents said that rates of technology innovations in their organizations considerably accelerated for the last three years. In particular, 73% of bank heads are sure that social, mobile, analytical and cloud computing (SMAC) led for the last five years to extensive changes.

In the research Accenture selected five trends which will have the strongest impact on banking sector in the next years. Among them there is use of DARQ technologies, personalisation of customer needs, gain of skills of employees, risk management of cyber security and transfer of the majority of services to mode 24/7.

The first trend — use of technologies of the so-called DARQ group which includes the distributed register (D — DLT), artificial intelligence (A — Artificial intelligence), expanded reality (R — Extended reality), quantum computings (Q — Quantum). According to 47% of respondents, the greatest influence on the organizations will have artificial intelligence. 19% of respondents selected quantum technologies as a priority, 17% noted the systems of the distributed register and 15% of percent of respondents — expanded reality. At the same time, 90% of managers already experiment with one or several DARQ technologies.

Trend number two is use of technologies for personalisation of requirements and achievement of new level of digital proximity with the client. Ability to analyze and interpret actions of users, respecting their confidentiality, allows to create high-quality individual service which raises a customer loyalty. 85% of bank heads consider that use of digital demography will help to understand customer needs more effectively. Nearly 30% of respondents expect the exponential growth of volumes of digital data about clients who will be managed by their organization within the next two years.

The third trend experts of Accenture call gain of skills of employees using new technology tools. More than 75% of top managers are sure: employees have higher level of "a digital maturity", than banking organizations in which they work, and expect from the employer of active digital transformation.

Researchers noted need of application for banks of the concept "the Person +" in which each worker will use a combination of own skills and knowledge together with constantly changing linking of technologies, from artificial intelligence to learning platforms. That the similar sheaf successfully worked, banks should pay much attention to continuous personnel training.

The fourth trend authors of a research called cyber defense gain. Information systems of banks become more and more interconnected with IT infrastructures of partners, so, their potential vulnerability grows. Creating around itself ecosystems, banks should increase stability of a cyberspace so that to protect all. Despite a global tendency to Open Banking (banks open access to a part of the data assets and the third parties get data access), only 51% of heads of banks called customer confidence to their partners "especially important". Also banks do not make sufficient efforts to guarantee that their partners are worthy trust of end customers.

«
"Our global research confirmed relevance of a subject of security for banks now: only 31% of respondents in security issues are ready to trust the partners. And at the same time 88% of percent of bank heads are convinced that the organizations can become really steady only if will rethink the approach to security and will protect not only themselves, but also the ecosystems created by them.

In my opinion, in Russia it is one of the most underestimated trends so far: the high level of cyber security in banks can be leveled because of system vulnerabilities in information infrastructures of their partners. Possibly, many large players of the market will face this problem within the next 3-5 years" — Irina Odinayeva, the managing director of department "Service for the organizations of the financial sector" of Accenture in Russia comments on results of a research.

»

As the fifth trend analysts called transfer of the majority of services to mode 24/7. Using technologies banks even more often begin to work in the mode of non-feet. For example, the Rocket Mortgage company through the online platform is capable to propose initial solutions on mortgage loans in only 8 minutes, and the financial conglomerate BNP Paribas opens a new account each thirty seconds. 87% of top managers of banks agree that a combination of customization and the offer of service in real time — a basis of future specific advantage. At the same time, in practice the situation is significantly worse: only 38% of respondents say that their organizations put the personalized approach to the product delivery in a priority.

2018: 15 trends of bank informatization

TAdviser defined the main trends of bank informatization in Russia
TAdviser defined the main trends of bank informatization in Russia

1. Platformatization

Some of the most noticeable trends of development of IT in banks in 2018 are connected with a platformatization, blockchain technology, transformation of offices of service and development of remote channels of provision of services.

Several years ago a talk on creation by banks of platforms and marketplaces for the purpose of promotion of the financial products and also different non-financial services from the affiliated companies or the partner companies began to be carried on. As of 2018, there are already several operating examples of similar platforms: Domklik also "I take" from Sberbank, the different Tinkoff projects (banking services, insurance, broker services, tinkoff.travel). In addition, the Central Bank is going to start in 2018-2019 a marketplace of financial services together with the Moscow Exchange, its National settlement depositary, five banks testers and also two informational portals.

«
This trend reflects that the future of the financial sector first of all in the offer not only standard banking services, but also the additional personalized services. The success of the existing platforms says that similar examples will become more over time, - Anton Golovaty, the director of business development LANIT-Integration says (enters into Lanit group).
»

Alexey Katrich, the commercial director of the company "Technoserv Consulting", considers that the concept of a marketplace can be compared to how at gas stations supermarkets appear.

«
Now we buy to ourselves coffee, we refuel gasoline and we do not think at the same time that behind all this there are oil companies, oil pipelines, processing plants. People come around on gas station to purchase coproducts and at the same time to refuel gasoline. Here and banks should create such "gas stations" with joint products, - he notes.
»

Alexey Trefilov, the director of ELMA, also considers that approach "Our mission — the commission" becomes outdated, and promotion of own services of bank is even more often transformed to the help to the client and earnings together with it.

«
As a result there are solutions not the most, apparently, bank — the same Domklik from Sberbank, - he notices.
»

2. Blockchain

Important trend of the market is the blockchain technology. Interest in it at participants of financial market reached the first pilot projects. One of such examples is the blockchain consortium which created Sberbank, Alfa-Bank and M.Video.

«
In the next several years, most likely, will appear a little, both similar, and decentralized, ecosystems with use a blockchain of technologies, - Anton Golovaty is sure.
»

In more detail about blockchain technology read in the overview of TAdviser.

3. Transformation of offices of service

The following noticeable trend is a transformation of offices of service. In this case it is not only, and even not so much, about reduction of number of departments of banks though this trend remains by minimization of expenses, how many about change of a format. In view of the increasing development of remote banking need for wide network of classical offices of service gradually vanishes. Nevertheless, completely it makes sense to refuse retail network not always, especially if the bank is aimed at wide client audience.

«
Not all age groupes of clients can like completely remote service, to some, maybe, need communication in private on individual conditions within large deal, etc. In that case there is a need available of a small amount of offices of customer service on any questions in the show-room format. In addition to standard forms of service these offices can carry out a task of demonstration of wide range of products of the organization and its partners and also the culture of customer service, - Anton Golovaty explains.
»

4. New activities

The margin in general at banks decreases, there is an excess of liquidity, the traditional customer base stagnates, the key interest rate decreases. It becomes more difficult to earn using the primary banking activity (the commission for RKO, percent on the classical credits). As Yury Teryokhin, the director of work with financial institutions The swagger is Development center"notes Swagger(Group), on this background banks actively develop and automate activities, new to themselves. It carries to them:

  • Services and products for small business and the individual entrepreneurship (IE) in general. In the conditions of stagnation of the traditional customer base of banks are the only segment which is rather new, besides, showing some growth.
  • Online crediting: unsecured consumer lending of physical persons and legal entities regarding small business and SP. It expands the customer base of banks and is especially relevant in the conditions of the decreasing key interest rate when sources of money for banks become cheaper.
  • Use of social networks for scoring of clients. Though in it there is more hype, than common sense, nevertheless, banks want "be in a trend" and in this respect.
  • Profound process automation of decision making using difficult multistage algorithms (conditional AI) which allows to reduce cost value of customer service in call centers, replacing with itself operators and to organize online crediting.
  • Investment services to individuals – structural products, bonds, the individual investment accounts (IIA), broker services. These services are attractive that they offer (but do not guarantee) to clients higher yield, than classical deposits, and banks are given additional funding and commission charges.
  • Transformation of banks into service companies in which financial services are the main, but not only. Many banks actively offer personal and others' clients legal, accounting, tax, insurance, documentary, tourist, telecommunication, broker, public services, etc. For banks it is a source of additional fees and clients. Especially Tinkoff Bank and Sberbank promoted in this direction. Such activity requires extensive automation of vendor interaction of services. Its full-scale financial and technical implementation can do only to large banks – they become universal providers of services B2C and B2B with the emphasis on a financial component, and small banks remain banks in classical understanding of this word.

5. Digital upgrade of banks

Banks should have a so-called "digital core". Therefore in the market there were several developed standard models of digital bank which cornerstone are CRM BPM, analytics and scoring models.

«
It is such digital layer through which work with the external companies is implemented. The open bank architecture assumes existence of set of adapters to different channels. This layer comprises workflow management which allows to coordinate the direction of information streams on different channels. Between a digital core and clients of bank there is a frontend in which the information security is ensured, and through which there is a work with client accounts, with PFM. It allows banks to sell not only the products, - Alexey Katrich explains.
»

Yulia Amiridi, the deputy CEO for business development of Intersoft Lab company, considers that the purpose of digital upgrade of banks is increase in profitability and competitiveness. Digitalization covers all edges of banking business, from external processes where the resulting changes and the purchased new "digital" properties of financial services are noticeable with the naked eye, to internal technologies of management.

«
Management tools efficiency of the organizations (Corporate Performance Management, SRM) based on data warehouses and the platform of the business analysis (Business Intelligence, BI) become the base of the last. They turn huge amounts of data, the credit institutions generated in the course of activity and arriving from the outside into the useful information allowing to increase profitability of services and clients, effectiveness of business processes and profitability of the business directions and bank in general. At the same time, despite new sonorous terms, digital conversions are natural result of evolutionary development of IT infrastructure of banks, the applied technologies already managed to prove, and on a digitalization wave their presence in the banking market only becomes stronger and extends, - she believes.
»

6. Development of remote banking

For those customer groups, it is more convenient to them to receive services on a remote basis, development of remote banking allows to render almost full range of banking services.

«
At the same time for bank this approach is often more profitable as allows to optimize staff costs due to search and connection to the system of employees in regions with lower wage, - Anton Golovaty adds.
»

According to Yury Goltser, the technical director of the department of CRM of Navicon company, implementation of the concept of "digital banking" gives to clients the chance to consume banking products completely far off through digital channels with a minimum of obstacles.

«
Based on a research of 2018 from Deloitte Digital, Russia entered in top-5 the countries in EMEA region on the level of development of digital banking, having bypassed even such countries as Great Britain or France, - Yury Goltser reminds.
»

7. Development of the systems of identification

One of new trends is development of the systems of identification. This trend is a consequence of transition of banks to "digital office" in work with clients.

Maxim Koltsa, the Head of Department of development Interprocom, gives start by MasterCard company in Russia of service of money transfers by phone numbers and accounts in several social networks as an example.

«
The mobile phone becomes actually an EDS analog, and banks reasonably insure themselves against identification errors using all types of biometrics. It is sure, this direction will actively develop both in the next and in the long-term future, - he explains.
»

8. Serious relation to threats

Artem Gavrichenkov, the technical director of Qrator Labs, considers that in relation to the sphere of cybersecurity the industry gradually comes to understanding that, fulfilling "to a letter" the requirements of regulators and the certified organizations, it is possible to undergo the majority of testing, and here it is impossible to construct really safe system that will entail serious effects after approach of the first real incident. To the contrary, after building of effective processes of cybersecurity questions of licensing and certification are solved much more simply and more effectively. If two years ago many considered revocation of license as the main risk, then now it becomes clear that it is directly connected with a set of other problems.

«
Already it is even a little strange to read it - as compliance 'on paper' can be more important than real losses of business? However and here we address features of processes of digital transformation again. In order that there was this understanding, serious reconsideration of experience was required. Financial structures got used to rely in general, for example, by interaction with executive authorities and were guided rather by investigation of incidents and search of malefactors, than by prevention of problems. Requirements of the regulator could not be discussed and analyzed, so it developed historically, however without analysis of motivation of the regulator to apprehend and correctly it is just impossible to implement all requirements generally, - Artem Gavrichenkov tells.
»

Decrease in losses from incidents becomes also important, as well as execution of rules of regulatory organizations. Moreover, the interrelation clears up. So, the essential role in change of approaches to protection of IT infrastructure of the organizations of the bank industry was played just by the recommendations of the Central Bank of Russian Federation which 'unrolled' bank security from formal compliance to requirements of regulators towards protection of business and explained need of reconsideration of security policies and quality standard of risks.

«
Many financial institutions begin to belong to threats more seriously. The similar trend will develop and further: today there is already a speech about obligatory certification of solutions cybersecurity, a talk and on carrying out regular audits and risks insurance gradually begin, - the technical director of Qrator Labs adds.
»

The information security, according to him, remains a significant priority for the organizations of the financial sector, and this priority steadily grows: the industry is in an awakening stage. Market participants it is still not final were focused on threats of cybersecurity, but to some extent it is already possible to speak about achievement by the Russian financial institutions of a certain level of a maturity in questions of protection and risk management.

Anton Klochkov, the manager with key customers of the company "ICL-KPO of AF", adds that the financial sector is under a great influence of IT therefore banks should conform to requirements of regulators at higher level.

«
It is necessary to understand that 100 percent protection does not exist, but there is a number of binding decisions which allow to reduce risks to the maximum: hardware of protection, sandbox, protection of applications, - he notes.
»

9. Applied tools for increase in efficiency of work with clients

Kind of did not speak about projects on a blockchain, artificial intelligence and the analysis of Big Data much, these tools are still demanded generally only by large banks. The main demand in the market of bank informatization, according to Anatoly Nabok, the director of work with corporate customers of System Software company, still is the share of the applied tools allowing to increase efficiency of work with clients.

However the majority of the Russian financial institutions already differs in the good maturity level of business processes therefore the main focus is the share, certainly, not of installation of CRM systems, and of more difficult solutions.

«
The knowledge bases for call centers with the built-in means of analytics helping to increase efficiency of operators concern them. Other class of demanded solutions — service portals both for needs of IT departments, and for other processes the front - and back offices which are often created based on solutions of Atlassian. However, in these areas banks often face the shortage of the qualified commands having competences for the large high-loaded projects: in the market of such commands of unit therefore our company pays special attention to development of this examination, - Anatoly Naboka explains.
»

10. Automation of routine transactions

Great interest of the market is noticeable to solutions which allow to replace the routine mass transactions executed by people with automated. Konstantin Usakovsky, the deputy commercial director of group of companies Aplan, notices that among the solutions allowing to make it - technologies of robotization, machine learning, artificial intelligence, business process management.

Alexey Kolesnikov, the sales director of iSimpleLab, considers that this trend is a consequence of reduction of marginality of classical products and desire of bank to save profitability from them.

Alexey Trefilov, the director of ELMA, adds that for minimization of a routine banks use bots and other modern technologies of automation.

«
Chat-bots are implemented including for service of internal consumers. Employees address internal service processes using messengers. To issue a business trip it is enough to write to a bot. It both will fill out documents, and will pick up tickets, - Trefilov explains.
»

11. Processing of Big Data

One more trend is connected with implementation of technologies for processing of Big client data (Big Data).

«
Data – it is not simple "new oil": in the financial sphere this are a new money. Therefore banks actively involve the clients in interaction with the company and laboriously their collect the information about everyone "a digital trace": communications with bank, payment history and even activity on social networks, at forums and in blogs. All most objectively to estimate reliability of clients at the offer to them products and also to create first-aid kits of services and to personalize all communications, - Yury Goltser, the technical director of the department of CRM of Navicon IT company tells.
»

Sergey Sherstobitov, the CEO of Angara Technologies Group, a key trend of the Russian market of bank informatization calls implementation own the practician of analytics of Big Data. He explains it with the fact that IT infrastructure already ripened, the huge data array from diverse sources which it is necessary not only to collect and store is built, but also to analyze.

«
Considering these factors, we see how our customers in banks use algorithms of machine learning in information security risk management, develop own DPCs and create departments date scientists (Data Scientist) which structure data and receive valuable insights for business, - he tells.
»

At the same time, the need for extraction from saved up by a databank of valuable information now arises not only in specialized services. It becomes mass and covers all levels of management: from shareholders and top managers to specialists, and all divisions: from the main dokhodoprinosyashchy to servicing and administrative.

«
It creates new requirements to software for work with data: data warehouses, applications of a business intelligence and tools of the business analysis gradually become drawing, i.e. the most ready for operation, more available and simple in use, the equipped convenient intuitive interfaces and visualization tools for the best perception of analysis results, - Yulia Amiridi tells.
»


12. Focusing of analytics

The status of the head, the less time is higher he is ready to spend for data analysis and bears more responsibility for decision-making. Therefore with growth of the status of the consumer of analytics in bank its requirements to IT tools change. Analysts and specialists are interested in advanced means for deep studying of the facts and detection of the hidden patterns, middle managers aim quickly and from the different parties to analyze a situation for operational correction of the actions, a priority of top managers - monitoring of external events, significant for the financial industry, control of internal business indicators both instant approach and the analysis of indicators, critical for business.

«
As a result along with heavy analytical platforms there are software products focused on requirements of specific user groups: the instruments of self-service for analysts allowing to calculate without the assistance of IT specialists different indicators and to configure cubes and reports, BI portals for heads, mobile analytical applications for owners and top managers, - Yulia Amiridi, the deputy CEO for business development of Intersoft Lab company explains.
»

13. Outsourcing

Correctly built architecture is the key to effective creation of all business of bank. There are three levels of bank IT architecture. The first — strategic, the purposes and tasks of business, its function belong there. Then there is a process model of business. On its basis the data model, architecture of information systems is under construction. There is already further what it was accepted to call directly IT architecture earlier: directory of infrastructure software, hardware and applications.

«
Now, for example, a hypothetical opportunity to centralize work with the current accounts of individuals and to transfer her to the Central Bank is discussed. What then remains to the most commercial bank? The CRM system and the front becomes a core, and sellers and produktolog become key staff, and all the rest can be transferred to outsourcing. The role of main system passes from the core banking system to a single frontal system, CRM and analytics. For bank which implements service model the risk management, processing of payments and accounting processing become the main thing, - Alexey Katrich, the commercial director of Technoserv Consulting company considers.
»

Banks will be selected where to take them services on risk management, to processing, where to host accounts and where to use accounting. And, of course, the bank should create optimal channels on which it will work with clients. These channels can also be bought as external service. Now there are suppliers who offer them in a cloud.

«
At the same time a trend such is that many banks are already ready to give the internal processes on outsourcing. They realized that the back office and accounting functions are not competitive advantages; to optimize expenses on them, it is better to centralize them. The uniform back office center could be created or as the general for several banks, or to give to integrator just as the general processing centers on payments are already created, - Alexey Katrich adds.
»

14. Change of requirements to banking networks and their DPCs

Continuous growth of level of informatization of banks, large-scale implementation of virtualization, containerization, cloud services, growth of number of mobile users, evolution of production and architecture of ASIC, the appeared need of formation of high-performance clusters for processing of large volumes of information, growth of volumes and granularity of the transferred traffic, mass use of public networks for corporate needs, shortcomings of traditional networks – led to change of requirements to banking networks of data transmission and their data processing centers.

According to Andrey Gorshkov, the director of the department of network integration of AMT Group, the requirement to modern bank DPCs, in addition to traditional requirements to fault tolerance, high availability, reduction of growth of expenses on infrastructure, also include:

  • Transition from completely physical infrastructure on virtual with the subsequent increase to requirements of performance of network infrastructure.
  • Flexibility, fast reconfiguration of infrastructure under the changing requirements of business, instant reaction in providing resources and services.
  • Mobility of resources, support of mechanisms of migration, not dependence on physical transport and IP addressing, coherence of each virtual resource with everyone;
  • Visibility and traffic observation, both in physical infrastructure, and in virtual.

Providing above-mentioned requirements, according to the representative of AMT Group, promotes implementation of new technologies:

  • DPCs flat networks – Architecture of CLOS;
  • Automation due to use of specialized controllers and SDN networks;
  • To use of "The imposed networks" (Overlay), the VXLAN and BGP protocols both for creation of DPC networks, and for ensuring interaction between DPC.
  • To use of specialized products on formation of copies of traffic and its analysis – network package brokers.

15. Transition to the solutions All Flash

In the field of deliveries of the hardware for bank informatization of change occur more slowly, but also here it is possible to reveal an obvious trend — transition to the solutions All Flash. If before their use was defined by requirements of annexes to the high performance of storage systems (for example, in the high-loaded databases or for loading of operating systems in virtualization environments), then today they dominate also in the environment of corporate applications.

«
Entry into the market of storage systems at first of IBM, Violin and Pure Storage, and then and other producers which are initially developed for work only with Flash chips and also recent emergence of the drives read intensive SSD allowed to reduce significantly total cost of ownership of the solutions All Flash and to bring closer it closely to solutions based on the drives HDD. We expect that the trend of use by producers of storage systems of technologies of the built-in compression and deduplication of data gaining strength will allow further corporate customers to refuse completely arrays with traditional drives for benefit of the solutions All Flash. Use of hard drives in storage systems at the moment can be dictated only by specific technical requirements (for example, in the systems of stream record of video of data), - Anatoly Naboka, the director of work with corporate customers of System Software company notes.
»

Other trends

Maxim Nikitin, the vice president of Maykor, the CEO of BTE (BTE), predicts that improvement of the regulatory base in the field of remote identification in the long term will give a new impulse to development of biometrics and a fintech.

«
Already now the Russian banks use biometric technologies in mobile applications and also are going to implement them in ATMs and pos-terminals, - he explains.
»

Alexey Trefilov, the director of ELMA, notes that in the conditions of the high competition banks continue to accelerate business processes — to squeeze out of them a maximum.

«
The serious relation to processes allows both to minimize "kosta", and to raise quality, and quicker to the consumer new products and solutions to deliver. Moreover, just flexible and effective business processes form fertile soil for implementation of rare innovative technologies. Without it they simply will not get accustomed and will not give to growth business, - Alexey Trefilov says.
»

Maxim Bolyshev, the associate director of department of banking software of RS-Bank, R-Style Softlab company, believes that in connection with growth of use of modern technologies it is possible to note a natural trend of deficit of highly-skilled employees in the field of machine learning and data processing.

«
Their cost grows, but at the same time the number of the personnel in the market, unfortunately, while increases insufficient rates, - he notes.
»

Mikhail Golovachev, the CEO Amtel-Service, selects two key priorities of bank informatization - it is security and customer services which provide to clients convenient and fast communications with bank in digital channels, personal offers and private banking. Also it selects a priority of the requirement of time-to-market, i.e. ensuring fast and timely release for the market of new products and services that is directly connected with an IT component.

«
Trends in a consumption pattern of IT resources are clouds and outsourcing of IT and cybersecurity of functions. Decrease in resistance to these models and inevitability of their application, at least in less critical areas, we already observe in recent years, and we predict significant growth in the next 5 years. It including will be promoted by the new standard of the Central Bank on outsourcing of cyber security, - Mikhail Golovachev adds.
»

Alexey Kolesnikov, the sales director of iSimpleLab, in addition to a digitalization of banking services, a blockchain and marketplaces, refers the increasing emphasis of banks on mobile platforms in the remote channel of customer service to number of trends.

«
In a retail segment already it to be told about the concept of mobile-first, - he says.
»

Andrey Fedorets, the CEO of iDSystems, calls 4 bank IT trends close to his company: implementation of payment model of notifications on existence of electronic accounts (e-invoicing); new "system of fast payments"; remote identification of clients (biometric identification); creation of portal solutions for clients.

Konstantin Usakovsky, the deputy commercial director of Aplana Group, mentions active market development of domestic bank solutions which can seriously press foreign developments already in the nearest future that, according to him, is promoted also by the recommendations of the state.

«
Development of solutions for corporate customers has more conservative appearance, than retail, there is a deepening of automation in all directions, from the BKO systems to monitoring systems of transactions and returns of debts here. At the same time the analytical and forecast systems are interesting practically in all points, - he tells.
»

Yury Goltser, the technical director of the department of CRM of Navicon company, reminds that in Russia, as well as in the majority of the countries – participants of the financial technical-movement, serious standardization of the arisen industry is noticeable.

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At the beginning of a year the regulator submitted the document "The Main Directions of Development of Financial Technologies for 2018-2020", the describing main perspectives and plans of implementation of innovations in the financial sector, - he explains.
»

Maxim Koltsa, the Head of Department of development Interprocom, notes that banks will surely continue transition from the expanded systems of "management of everything" to microservices and some of them without fail there will be an automation of the personified work with the client, for example, smart credit calculators and programs of selection of banking products.

«
And of course, the movement from expanded analytics during the work with clients to use of artificial intelligence technologies and machine learning becomes one of key trends in banks, gradually passing from a stage of separate experiments and pilot projects into a mainstream, - he adds.
»

Vadim Shustov, the deputy CEO of Jet Infosystems company, considers that the Russian banking sector heads for decrease in CAPEX today.

«
Our many clients look towards expansion of borders of outsourcing and outstaffing regarding service of IT systems. Also we observe the active practical interest of financial institutions in implementation of machine learning technologies and artificial intelligence. The integration projects with business partners and state agencies allowing banks to enrich the products with functionality are popular (for example, in the field of registration of transactions, a design of an insurance, providing discounts, etc.), - he explains.
»

Pavel Zubkov, the director of the department of work with financial institutions of AiTeco company, refers support and development of earlier implemented systems, or their optimization to number of trends. Besides, he notices increase in a share of insourcing in some directions of outsourcing and import substitution (software and iron). One more trend, according to him, is connected with the active growth of a "cloud" segment at the level of infrastructure and separate applications.

«
Also enlargement of financial institutions as a result of merges, absorption or sanitation and, as a result, forced integration of a separate IT landscape into unified information environment for acceptance of competent management decisions and ensuring business continuity, first of all for retail and corporate clients is observed, - Zubkov adds.
»

2016: 15 trends of bank informatization

Having talked to the IT companies which are engaged in creation and implementation of different solutions for the Russian financial sphere, TAdviser defined 15 trends which have a direct impact on development of the domestic market of bank informatization.

  • 1. Birth of the financial and technology industry
  • 2. Personalisation of products and services
  • 3. Clouds and outsourcing
  • 4. New approaches to data protection
  • 5. Projects with fast return and new niches
  • 6. Growth of demand of RBS
  • 7. Increase in a role of call centers
  • 8. Completion of bank software according to requirements of the regulator
  • 9. New means of identification of clients
  • 10. Integration of banking systems
  • 11. Change of approaches to creation of IT infrastructure
  • 12. Enlargement of financial institutions
  • 13. Reduction of number of departments of banks
  • 14. More widespread introduction risk management and standards "Basel III"
  • 15. Away match

In more detail about trends of bank informatization in 2016 it is possible to recognize by the link.

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Notes