Page 47 - BANKING FINANCE SEPTEMBER 2015
P. 47
ARTICLE
CUSTOM VS
PACKAGED
SOFTWARE - THE
CHALLENGE FOR
BANKS IN INDIA
R. P. Singh
Nucleus Software
T he banking industry in India with their fast-evolving needs, are al- and focused customer interface and
and worldwide is undergo- ways on the lookout for new finance may represent a relatively low upfront
ing a revolution. Competi- products that could give them greater cost - though increasingly this is not the
tion is increasing with new efficiency or a competitive edge. As a case. Being able to quickly demand
entrants targeting the result the sector is facing ever-increas- fixes and enhancements can also be
market; customers are demanding ing regulation. attractive.
new products and better services.
Thanks to the internet and comparison All of these challenges have led to the On the other hand, off-the-shelf or
websites, new technology is driving increasing need for banks and financial packaged software is a standard solu-
change with unprecedented speed. services companies to invest in highly tion which may meet, say,75 percent
New competitors can gain the upper configurable, automated banking solu- of the customers' needs out of the box,
hand helped by latest technology. tions with sophisticated multi-channel should be faster to deploy and requires
support - web and mobile in particular. low internal support.
The development of sophisticated fi-
nancial instruments and new products So should these new banking solutions With a large - often international -
and services in the market is leading to be "custom built" or "off-the-shelf"? customerbase to drive enhancements
exciting innovation. Competition is Custom-built software has the advan- which all users benefit from,and a soft-
coming from unexpected places - tage of being uniquely developed and ware vendor whose core competency
telcos, utilities, retailers are all eyeing focused on the specific needs of the is developing banking software, it will
potentially profitable segments of fi- bank to provide it with competitive continue to deliver value into the fu-
nancial services. Corporate customers, advantage. It also ensures a localized ture.
BANKING FINANCE | SEPTEMBER | 2015 | 47
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