SAP has urged banks in the Middle East region to embrace IT innovation to stay ahead of regulatory change, cope with increasingly complex customer demands, and make a positive difference to society as a whole.
According to the global business software giant, banks need to urgently adopt integrated strategies for breakthrough mobile, cloud, applications, analytics and database technologies.
The clarion call to action was made by Don Trotta, SAP´s global head of banking industry development, ahead of his company’s participation at SIBOS, one of the world’s leading financial services conferences, in Dubai this month. It will be the first time the prestigious event, which is organized by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), is hosted in the Middle East.
“To be effective, to be trustworthy and certainly to be good – in any sense of the word – banks need to make it an important part their mission to innovate, and to get innovation right, in order to make a positive difference for their business, their customers, and society as a whole,” he said.
“Banking has become a huge and complex industry, and recent shocks have shown the old system to be more vulnerable than many believed. A new mood of caution is sweeping through global financial markets, driven by national and global regulation. This is a situation demanding innovative responses, to prevent capital being either insufficiently reserved or locked up unnecessarily.”
Trotta pointed out that imminent legislation such as Basel II and III set criteria for reserved capital. However, without sufficient insight into their processes, many banks will have to “play it safe”, retaining more capital than the regulations and their own risk profile requires.
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