Banks' Big Upgrade: Meet Real-Time Processing

CWmike writes "It has been years since the banking industry made any large investments in core IT systems, but some of the largest financial services firms in the U.S. are now in the midst of rolling out multi-million dollar projects, say industry experts. About a decade ago, they began replacing decades-old Cobol-based core systems, with open, Web-enabled apps. Now, they are spending more than $100,000,000 to replace aging systems, converting to real-time mobile applications for retail services such as savings and checking accounts and lending systems. The idea behind going real-time: Grab more business — and money — from customers. 'Five of the top 20 banks are engaged in some sort of core banking replacement and we expect to see another three or four in next 12 months,' said Fiaz Sindhu, who leads Accenture's North American core banking practice. 'They're looking at those upgrades as a path to growth.'"

Comments

And yet I bet they still hold our checks...

[paulsnx2]

None of this should be taken as meaning they should not modernize. It is just that they have taken this long to realize that they might make more money by being fast than by being slow. I expect they have figured out how to be either, depending on how it benefits them.

Debits are already real time.

[PeanutButterBreath]

Deposits? Pneumatic tube to the abacus room.

Re:Effects of Hyper Inflation

[DigiShaman]

I'm not ashamed to ask questions in areas of knowledge that I lack. I understand basic economic theory, but I'm not an accountant. Real-Time banking is new concept to me, which is why I asked and provided and example that may or may not be applicable. Alexander responded with excellent clarification.

If only more people would start asking questions rather then provide arrogant and snarky remarks such as yours, this forum would be a better place to read.