The trade association for the UK technology industry has made a series of recommendations about the processes that underpin the financial system, agreeing that “patchy and outdated” infrastructure is creating huge problems for banks.
Intellect spoke in response to conclusions from the Parliamentary Commission on Banking Standards, which acknowledged that technology infrastructure has grown to become “too complex to manage” in a new report.
Technology infrastructure in this case refers to to myriad systems that allow data to flow within and between banks. Financial institutions use this technology to aid them in a number of their everyday tasks, from processing loan applications to making payments into accounts.
Much like the systems they use for mailing new cards and promotions, Intellect insists that without this technology, banks stop working.
However, a statement at intellectuk.org claims that this “plumbing” is so “exceptionally complex” it only hinders the institutions that use it.
The group said this issue should be addressed on a point-by-point basis and offered a number of recommendations in addition to those outlined within the Commission’s report.
Cited by fineextra.com, these included a consideration of a greater number of technology-literate individuals at boardroom level. Intellect said banks should also be encouraged to more comprehensively map their existing systems and processes in order to implement change more quickly.
Intellect also urged clarification from regulatory authorities on what they want banks to do in the future and a greater degree of collaboration across banks to see how problems with technology infrastructure can be addressed more effectively.