Banking Technology: The New Frontier

Prior to joining NES Financial (NESF), I spent much of my career in the telecommunications industry.   Before the 1990’s, telecom operators were mainly focused on the “network core,” stemming from a 100-year-old heritage of engineering the most reliable and high performance networks possible. This caused equipment suppliers to focus on building more reliable and scalable solutions and innovation pertained mainly to enhancements that were invisible to end-user customers.

Dramatic changes began with the Telecom Reform Act of 1996. A new regulatory plan for end-user applications and services differentiated them in the marketplace and drove additional revenues and profits.   Operators wanted to leverage their core networks but discovered they could not retrofit quickly enough to meet business demands for new applications.  Soon, a whole new class of suppliers emerged that provided enhanced service platforms.  These platforms worked in conjunction with the existing core infrastructure and provided a huge range of applications such as voice mail, speech recognition, and on-demand conferencing among others.  Without sacrificing service quality or security, telecommunication companies proved they could leverage their investments in the existing infrastructure while implementing layers of enhanced service functionality.

Today, I see the banking sector beginning a similar evolution.   The core networks built by the banks today are extremely reliable and robust.   The traditional technology suppliers to the banks have focused on building highly scalable, secure and reliable platforms.   Financial transactions move around the world in micro-seconds.  Security and redundancy has been implemented on every level to protect financial data from being lost or disclosed.   With the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, financial institutions need to figure out how to meet the demands of an increased regulatory environment, while managing to find ways to grow revenue in this historically low interest rate environment.

Unfortunately, just as the legacy telecom networks, most bank networks are not built for flexibility and rapid deployment of new revenue generating services.  However, a whole new class of suppliers is beginning to emerge with solutions that work in conjunction with the bank’s core network, while providing banks the ability to deliver highly efficient and flexible customer solutions. Some in the industry are calling this technology the banking platform of the future.

Our eSTAC technology platform enables financial institutions to quickly deliver solutions that are highly customized to their specific customer needs.  As a result, additional revenues can be quickly and cost effectively created. Some of the capabilities include:

• A secure, password-protected online portal that enables administrators to manage, while end-users are able to view their accounts in-real time. Its 24/7 online visibility provides reliable access for the client to oversee their funds.
• Seamless integration with existing internal systems and bank operations.
• Automatic recording and storage for full, convenient audit trails.
• Compliance with SAS 70 Type II vendor requirements, equating to the same level of certification needed to obtain a federal bank charter, and Sarbanes-Oxley Section 404 control requirements.

Click here for more information on NES Financial’s eSTAC technology.

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