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Read on to discover what really matters for tech in financial services right now.
Despite more important things happening in the world right now, there has still been a lot of news in the financial services industry, we’ll take you through the important stories you may have missed.
Michael Jaiyeola, Fintech Marketing Lead
The Top Stories Right Now
JPMorgan to spend $12 billion on tech
This announcement from JPMC signals a significantly larger tech spend will be allocated to keeping pace with fintech challengers and Big Tech – which is quite a humble admission considering that the bank has over 60 million retail customers. [Read the press release]
This will be an increase from $9.5 billion in 2020 for the leading US bank. As with all financial services incumbents, most of the tech costs will be gobbled up by managing legacy systems and keeping the lights on operationally.
Beyond that, we do not have much light on where the additional budget will be focused beyond leveraging cloud computing, improving data strategy and investing in a product-led mindset.
So what exciting innovation might this $12 billion investment in tech spawn? That is very much TBD because in an organisation as large as JPM, trying to mirror the nimbleness and agility of fintech startups is the biggest challenge of all.
UK regulators looking into operational resilience of cloud suppliers in banking
According to an anonymous source speaking to the Financial Times, the Bank of England’s Prudential Regulation Authority is starting to consider cloud providers as “critical third parties that we need more oversight of.” Microsoft, Google and AWS are being looked into to understand the risk/benefit of cloud adoption in financial services and especially what disaster recovery is in place.
The concerns about the consequences of a major cyberattack that would affect UK banks and an ever-growing number of British consumers whose banks are increasingly using cloud-based technologies.
The PRA is set to publish a joint discussion paper with the Bank of England and the Financial Conduct Authority in 2022 to look into the issue.
Denmarks’ clearing house to adopt the P27 cross-border payments platform
The platform developed by Danske Bank, Handelsbanken, Nordea, OP Financial Group, SEB and Swedbank will now also become the national clearing house for Denmark, replacing the current infrastructure. This is quite a big step forward and a great example of how cutting edge fintech can start to change underlying financial infrastructure
The P27 platform uses the innovative Immediate Payment System developed by Vocalink. Along with P27, Vocalink (part of Mastercard) has won several big contracts around the world, including with Singapore, Thailand and the US bank-backed ACH The Clearing House.
The consortium of Nordic banks’ lofty ambition for P27 is to create one common state of the art payment platform in the Nordic countries. The platform includes Vocalink’s innovative Immediate Payment System (IPS) which uses Erlang based technologies to achieve massive scale at the centre of the global payments infrastructure.
More content from us
We’re looking forward to taking part in Fintech Week London again. Last year we were able to organise a star-studded in-person panel to discuss the non-crypto uses of blockchain in banking and financial services.
With distributed ledger technology experiencing an uptick in attention of late, now might be a good time to review some of the expert thoughts and insights from our panel from last summer.
“System disruption”, “significant technical issues” – another IT issue grounds British Airways flights
With a cyberattack being ruled out as a cause the finger points again to ailing BA legacy tech. This is the latest in costly recurrences of tech mishaps for the once-great British travel institution. Since 2018 there have been major leaks of credit card data and system outages hitting the bottom line and BA’s reputation.
UK fintech – could do better?
A year on from the Ron Kalifa report for the UK government to roadmap the future of British based fintech, Innovative Finance (the non-profit industry body) has written to outline areas of improvement with the signatures of leaders at 70 of the biggest fintech firms.
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