IT budgets in times of stricter financial market regulation
Traditionally many banks have taken care of their core applications in-house. For a long time, standard software was unable to map out the complex requirements. As a result, often obsolete systems had to be increasingly adjusted to comply with new legal stipulations.
This became more and more complex and expensive over time. In addition, many banks are tied to their IT employees' know-how – which is hardly a future-proof model, not to mention a risky strategy in light of aging developers. To compound matters, the remaining specialists, in additional to their normal daily business, are generally not in a position to implement regulatory requirements in good time.
Providers of standard software are currently trying to exploit this situation to acquire banks as new customers. However, it's not possible to apply amended laws or processes at the push of a button, even using standard applications – they must meet the requirements of various organizations and are accordingly comprehensive. Simply introducing standard software is not enough for banks to meet regulatory requirements in full. With projects of this scale, they must analyze and optimize their entire IT architecture and the interplay with the different departments in the organization at the same time.
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