Intel Report Core Replacement - Flipbook - Page 4
THE CORE OF THE PROBLEM
Seattle Bank had a problem. With more of its customers moving to digital banking
and a rising risk of customer flight, Seattle, a boutique bank with $692 million
in assets, needed a better way to innovate and achieve the same connection with
customers online that they gain when people walk into the branch.
To attain this goal, Seattle Bank went through the perilous process of converting its core
to a new provider in 2020, London-based Finastra. It would take months, but it was
about “what we can do in the future,” says Jayson Callies, chief information and innovation officer at Seattle Bank.
Connections have always mattered in banking. Community and regional banks have long
epitomized the importance of connection, knowing the local town and customers so intimately that they distinguished themselves from larger institutions. How could a larger
bank know what you need more than your neighbor, after all? But the ability to understand a customer no longer relies solely on geography and the personal touch. Instead,
institutions large and small can utilize data to determine customers’ financial needs,
goals and expectations. Using its data — including all of the data within its servers —
a bank can process loans using analytic tools, giving customers almost an immediate
response, as one example. It can result in immediate posting of payments or transfers.
Or it can potentially provide advice based on the rate of spending the bank analyzes.
The amount of data available to drive analysis and implement predictive tools has grown
exponentially due to the pandemic and the proliferation of mobile devices and social networks. In 2020, the amount of data stored and replicated in the world jumped by 94%
to 64 zettabytes (ZB), according to the International Data Corp. (One zettabyte is the
equivalent of a trillion gigabytes.) The group predicts a 23% compound annual growth
rate from 2020 to 2025. What sector stands to benefit the most — and has the most to
lose — from this data surge? Finance.
2 | FINXTECH INTELLIGENCE REPORT
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