SAP urges Mideast banks to 'get innovation right'
Dubai, September 4, 2013
SAP, a leading enterprise application software provider, has urged banks in the Middle East 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.
Banks need to urgently adopt integrated strategies for breakthrough mobile, cloud, applications, analytics and database technologies, said a statement.
The 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.
“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," said Trotta.
"This is a situation demanding innovative responses, to prevent capital being either insufficiently reserved or locked up unnecessarily,” he said.
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.
“By employing technology innovation such as ‘in-memory computing’ banks are able to track the movement of capital through their systems in real time, and make on-the-fly calculations and informed decisions to more effectively manage risk and capital while consistently maintaining regulatory compliance," said Trotta.
"A bank unable to do this will need to err on the side of regulatory caution, limiting its ability to use its capital effectively,” he added. - TradeArabia News Service