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Oracle Offers Banks All the Fintech Solutions They Need – Minus the Competition

The question is no longer if banks will move to the cloud but how. Between security concerns and the burden of unwieldy legacy tech, banks are several steps behind nimble fintechs who are hungry for market share.

According to a 2024 report by global IT services and consulting firm Accenture, banks initially failed to leverage the full potential of cloud services because they didn’t change their operating models to match new cloud paradigms. “Instead of ramping up to cloud speed, they forced the cloud to operate at bank speed,” the report says.
That’s changing now. In 2022, the number of tasks banks ran on cloud servers doubled compared to the year before.

AI and ML breakthroughs will drive banks to the cloud faster

Recent breakthroughs in AI and ML have tipped the scale in favour of the cloud. Although the banking sector has used ML and AI since the 1980s, particularly in credit scoring, the snowballing AI developments of the last few years are due to an entirely new deep learning architecture based on a paper from 2017.

The paper introduces the “transformer” machine learning model, which allows AI algorithms to process enormous amounts of data in parallel and extract context and meaning from that data.

Virtually every “wow” product and service in AI recently was based on this model, and generative AI depends on it. One Polish bank implemented a generative AI (GenAI) solution that allowed loan officers to analyse loans against requirements in seconds, leading to an increase in the bank’s share of the market. Several other banks are also implementing GenAI solutions.

“To stay relevant, banks must be ready with an ecosystem that’s always available, agile, frictionless, and scalable”

Prasad Khambalikar
Regional Director and Head of CEE at Oracle Banking and Financial Services

However, transformer technology needs powerful data centres, in addition to data security. It’s generally understood that the best way to run AI solutions is in the cloud.
AI tech is moving too fast to run it in-house. By the time a bank builds its own data centre and hires a team of data scientists, the technology will likely have advanced far ahead of the bank’s investment.

Oracle Financial Services: Fintech for banks, minus the competition

Oracle Financial Services, a fintech subsidiary of the tech giant Oracle, provides the full gamut of banking services in a cloud-ready manner to empower any financial institution to migrate toward next-generation banking. The company has centred the design of this full-stack product around the customer, and the suite’s purpose is to help banks adapt.

“Sooner rather than later, Banking Services will become almost invisible, indiscernible, unnoticed, and intangible,” says Prasad Khambalikar, Regional Director and Head of CEE at Oracle Banking and Financial Services. “To stay relevant, banks must be ready with an ecosystem that’s always available, agile, frictionless, and scalable.”

To provide that scalable and agile solution, Oracle’s Banking services offer microservices and a component-based architecture to help banks weather the unknown, and transition away from monolithic and legacy environments.

Instead of partnering with multiple competing fintechs, banks can partner with a single technology company whose primary interest is not to enter the market but to deliver leading tech from an innovative application till a secure and resilient metal.
No competition—and a single vendor.

Designed to scale

Oracle has designed its banking platform to be both scalable and adaptable. The system exposes over 3,000 microservices and open APIs across its platforms, which are designed to be interoperable and secure across systems, gateways, and regulatory interfaces.
“Banking should be invisible and embedded within the customer’s life,” says Khambalikar. “Today’s customer wants a Lifestyle Bank.”

Designed for continuous innovation

Oracle Financial Services leverages enterprise innovation to quickly deploy early-market and industry-leading technologies, like cloud services, to stay ahead of disruption. For example, banks have quickly deployed use cases such as approvals on wearables, peer-to-peer payments, voice-assisted transactions, and microtransactions via Quick Response (QR) codes, an internal company document says.

Cloud-ready

Oracle Financial Services offers cloud-ready solutions on Oracle’s advanced cloud infrastructure, with a growing range of cloud-native applications, giving banking customers the flexibility to choose deployment methods that suit their preferences.

Adaptability, security, and compliance are prioritised to ensure the safety and security of customer financial data.

Oracle has also made a significant investment in Oracle EU Sovereign Cloud regions, specifically tailored to meet the unique needs of European Union (EU) organisations.
Agility at the cost of stability is not an option. Oracle’s customer accolades and numbers prove that it offers both.

Between outright corruption, such as what occurred in FTX, or poor risk management (among other things) that led to the fall of Silicon Valley Bank and Credit Suisse, we need few other examples of how vital it is for a bank to stay afloat. Regulations and treading with caution have, so far, worked excellently to achieve that.

Going “all in” on agile solutions represents a massive risk for banks if it’s done with the wrong partner. New, immature fintechs rarely make the grade. That’s why partnering with a solid Banking leader that’s been going and growing for more than three decades makes sense.

As of 2024, Oracle’s financial services numbers speak for themselves:
Oracle Financial Services Manages $200 billion in revenue for banks and payments processors. It processes transactions for more than 730 banks and financial institutions across 160 countries worldwide.

Oracle’s clientele spans the spectrum global and Regional giants like HSBC, Barclays, Citi, Santander, Luminor Group, Banca Intesa Group, Banca Transilvania, MBH, Unicredit to Neobanks & EMI Innovators like European Merchant Bank, FinXP, W1TTY, Trust Payments, and many more.

Customer Spotlights

EMBank challenges traditional banking models by offering innovative Fintech solutions, expanding services to support alternative banking payments, and aiming to introduce instant payments next year.

Partnering with Facilization and Oracle, EMBank leverages a composable framework hosted in Oracle Cloud, enabling adaptability, API integrations, and a secure mobile experience.
W1TTY chose Oracle Banking for its comprehensive suite.

Founder Ammar Kutait emphasises Oracle’s scalability to support W1TTY’s global ambitions in delivering tailored offerings based on customer financial situations, life circumstances and goals.

finXP, a fintech specialising in B2B payments in Europe, focuses on delivering faster and simplified payments for next-gen businesses.

According to Jens Podewski, CEO and Co-founder of finXP, by choosing Oracle, finXP aims to provide agile and versatile payment solutions.

Fuelled with the right skills, expertise, and experience of the partner Ecosystem
Oracle’s Partner ecosystem is a well-oiled engine to address the specific needs of the local market while ensuring successful delivery and ongoing operations of the banking ecosystem.

Established in 2009, Facilization is a key player in Oracle’s Partner ecosystem.
Equipped with the right blend of skills, expertise and experience, Facilization complements Oracle’s market-leading solutions with customer-centric services to comply with local regulatory requirements and meet the unique needs of Fintech institutions, as well as leading the way for greenfield implementations.
With a successful track record of 200+ projects across 7 countries, including the Baltics, Facilization is a trusted partner in core banking, digital banking, and integration services.

NFM Publishing Team
NFM Publishing Team
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