The future of wholesale payments technology (Technology Focus)

The future of wholesale payments technology (Technology Focus)

Introduction
Legacy payment systems are still highly prevalent across the banking industry and the need to get rid of these platforms is proving to be the impetus and driver behind change and the need for more innovative solutions in this wholesale banking and payments marketplace. Vendors have also commented that a key source of competition for themselves come from 'in-house legacy platforms.'

Scope
*Banks need to replace legacy systems by adopting component-based approach.
*'Big-bang' projects are expensive and deliver slow ROI.
*A component-based approach to re-engineering will deliver faster ROI at lower project risk.
*The message broker offers an alternative to expensive thick-client solutions.

Highlights
Numerous payment messaging standards and legacy in-house frameworks has led to wholesale customers with multi-banking arrangements maintaining several structures to support financial information flows. The banking industry is collectively looking to standardize and re-engineer their payment systems.

Reasons to Purchase
*Solution providers can improve their understanding of the challenges faced by wholesale payments functions.
*Gain insight into key technology drivers and implications to assist vendors in developing an effective value proposition.

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Banks need to replace legacy systems by adopting component-based approach 2
'Big-bang' projects are expensive and deliver slow ROI 3
A component-based approach to re-engineering will deliver faster ROI at lower project risk 4
The message broker offers an alternative to expensive thick-client solutions 4
ACTIONS 6
Vendors should focus on providing solutions that support gradual replacement projects 6
Vendors need to effectively demonstrate short-term ROI 6
Vendors need to strike the balance between end-to-end and best-of-breed solutions 6
METHODOLOGY 8
Further reading 8
Ask the analyst 8
List of Figures
Figure 1: Replacing legacy systems is seen as key priority for 2006 3