We recently got the opportunity to speak with Jeff Reser who leads DataDirect Connect & Cloud Marketing for Progress Software. Below is our conversation with Jeff:
Q) What is the role of data connectivity in the banking & financial services industry?
A) Core banking systems enable financial institutions to create, process, and manage their products and services. They are composed of several key components—the general ledger, customer information files, deposits, loans, and payments—and drive a bank’s day-to-day activities. Without a core system, an institution would fail to exist. Because of their high level of importance, the performance of core systems is of great concern to the financial services industry worldwide.
The flexibility of these systems determines the speed with which an institution can launch new products, the ease with which it can integrate with other newly deployed applications, and the rate at which it accesses customer information. As a result of the complexity, cost, and often multi-year implementation timelines of core banking systems, most banks around the globe have ignored the shortcomings of their current system, maintaining the same one for as many as 30 years rather than replacing it.
The key to any banking system is high-performance data connectivity between the front office and back office, arrangers and investors, and buyers and sellers.
Q) What are the top data connectivity concerns affecting financial companies?
A) The top five connectivity concerns affecting financial companies:
- Security: Protecting customer information
- Reliability: Streamlining business continuity protocols and disaster recovery solutions
- Performance/Scalability: Ensuring the reliability of real-time transaction systems
- Flexibility: Quickly responding to business requirements
- Compliance: Adopting new regulations
Q) How can data connectivity help banks deliver better services to its customers?
A) Banks who have high-performance data connectivity between the front office and back office are able to be more responsive to the specific financing needs of their customers. They are also able to launch new products faster and easily integrate newly deployed applications. It also allows users the ability to access data quickly in order to run business critical reports.
Q) What risks do financial services companies face if they don’t invest in high quality connectivity?
A) They face security risks as well as losing competitive advantage to other organizations in the sector who are investing in updating their technology. Also they risk losing customer confidence if the bank does not appear to have timely access to integrated data.
About Jeff Reser:
Jeff currently leads DataDirect Connect & Cloud Marketing for Progress Software. Before that, Jeff was responsible for Business Process Management Solutions Marketing. With over 30 years of experience in software technologies, product management, and product marketing, Jeff’s areas of expertise include Big Data & Cloud connectivity, Business Process Management, Business Rules Management, Web application serving, and mobile computing.