Changes in technology are revolutionizing banking and the entire financial sector. Era of premises based core banking system is being challenged by other Technological changes. Technological changes challenging the old Server-client (premises based) desktop enterprise core banking application include:
Emergence of powerful cloud computing technology
High level of integrations in the financial industry, every financial player need multiple services which are availed through API making cloud environment inevitable.
Emergence of multiple alternative banking channels which are cloud based such a mobile apps.
Need for realtime and branchless operations for the financial sectors.
Advancement of security in cloud environment compared the premises based servers and applications
Cloud or Saas Banking platforms are available as services, requiring operating costs and zero or limited capital investments as compared to the desktop premises enterprise systems that required huge capital investment to get started.
Emergence of more efficient Saas or cloud banking applications such as Mambu, Jisort, Mambu.
Saas or Cloud core banking platform reduce the switching cost when necessary as compared to desktop enterprise system.