The Great Recession of 2007-2009 led to a significant consolidation in the financial and banking world with big banks and institutions acquiring smaller ones; smaller players merging together to achieve economies of scale and market presence. This trend is continuing today too with consolidation being the new buzzword. On the other end of the spectrum we have the smaller regional banks and credit unions which are increasingly investing in newer analytic software and technologies to give them the competitive edge. Further these organizations are trying to base their technologies in the cloud to help them lower their costs. One of the biggest challenges of this ongoing consolidation in the industry is creation of ‘data silos’ and the efforts needed to map years of legacy data from old systems and sources into the new architecture.
Another fallout of the financial crisis has been the extraordinary steps taken by policy makers and regulators worldwide to strengthen banks and financial institutions against future shocks. There are more regulatory and compliance checks on the institutions than ever before which are already cutting into their IT budgets and staffing needs.
A Typical Technology Stack
Financial institutions in the current era have a myriad of software applications and systems. They may have cloud-based applications like WorkDay for their HR processes, ServiceNow for their task processing and managing Operations workflows and Salesforce or SAP or Oracle E-business Suite for their vital CRM needs. Additionally, they will have legacy Data Warehouses built on traditional databases like Oracle, SQL Server and Teradata; on-premise Oracle Applications and Microsoft Dynamics. And they may employ tools like Informatica Data Quality and Informatica MDM to get accurate and trustworthy data for fulfilling their regulatory and compliance obligations. With the myriad of systems comes the need to integrate these together by employing different iPaaS solutions like SnapLogic, Dell Boomi, Informatica Cloud, etc. Figure below shows the typical technology stack.
Fig. 1 Cloud Applications
Fig. 2 Databases, Data Warehouses and Other Applications