With transaction volumes, customer expectations, and competitive threats at an all-time high, banks must adapt quickly to keep pace. To address these challenges, Oracle has launched Oracle Banking Cloud Services, a new suite of componentized, composable cloud native services.
The six new services available today provide banks with highly scalable corporate demand deposit account processing; enterprise-wide limits and collateral management; real-time ISO20022 global payment processing; API management; retail onboarding and originations; and new self-service digital experience capabilities. Built on a microservices architecture, they help banks renovate and modernize their business capabilities faster and with less risk.
“Banks must innovate to succeed in today’s hyper competitive environment,” said Sonny Singh, executive vice president and general manager of Oracle Financial Services. “We have built one of the world’s most comprehensive suites of cloud-native SaaS solutions so that banks of all sizes can innovate with speed, security, and scale without compromising their existing environments.”
The services can run standalone, work seamlessly together, and coexist with existing applications to help banks lower cost and risk while increasing innovation. Banks benefit from faster provisioning and availability—which can be achieved in a matter of minutes—and gain automated patching and reduced disaster recovery switchover times that lower IT costs and burden.
The new services are built and running on the high performance, scalability, security, and compliance of Oracle Cloud Infrastructure, including OCI’s Oracle Kubernetes Engine. With most cloud regions available globally, in addition to the most extensive set of distributed options, Oracle Banking Cloud Services can be deployed based on sovereignty or data residency needs. New services include:
Oracle Banking Accounts Cloud Service
Current corporate demand deposit account (DDA) solutions are ill-equipped to handle the explosion of ecommerce and digital payments that have caused a massive increase in global banking transactions. PwC estimates the global volume of cashless payments is expected to increase by more than 80% between 2020 and 2025, to reach nearly 1.9 trillion transactions. Oracle Banking Accounts Cloud Service provides highly scalable demand deposit account processing on Oracle Coherence Datagrid Infrastructure. The service has been tested for extreme performance and recorded over 200 TPS per CPU on commodity hardware. It also integrates with a bank’s existing process flows and technology so they can modernize their core banking DDA systems to deliver new offerings to the market without disrupting their operation.
Oracle Banking Payments Cloud Service
Legacy systems can’t scale and manage the growing volume and velocity of digital payments from ecommerce and new transaction types. Oracle Banking Payments provides a single engine for real-time payment processing, including cross-border, high-value, bulk, retail, and 24×7 payments. The service is built from the ground up based on an ISO20022 canonical data model and more than 15 leading global payment schemes such as SWIFT, SEPA, and others out of the box.
Oracle Banking Enterprise Limits and Collateral Management Cloud Service
With the absence of an enterprise-wide system, inefficient monitoring, and poor controls, corporate banks are struggling to manage the influx of defaults. McKinsey estimates that banks using improved models could see a 20-40% decrease in their credit losses. Oracle Banking Enterprise Limits and Collateral Management enables banks to gain a holistic view of their exposure by centralizing the limits definition process and collateral management. The service reduces risk by providing banks with a real-time solution for exposure tracking, credit underwriting, decisions, and approvals.
Oracle Banking Origination Cloud Service
Today, instant gratification is redefining banking, as customers now expect accounts to be opened quickly, loans to be processed in minutes, and cash disbursed in a matter of hours, all with a high level of process transparency. Oracle Banking Origination offers streamlined processes and automated decisioning that helps bankers deliver tailored onboarding and originations experiences for retail and small business customers. With the service, banks can quickly scale originations across retail asset and liability business lines to efficiently drive higher deposit and credit volumes.
Oracle Banking Digital Experience Cloud Service
Oracle Banking Digital Experience Cloud Service is a digital banking solution that provides ready-to-go corporate and retail banking experiences that enhance customer service. The solution offers customer and product acquisition in addition to omnichannel contextual digital experiences supported by video, chatbot, AI, and natural language processing (NLP)-based engagement tools. The service also works with the bank’s existing technology and third-party services to drive seamless processes.
Oracle Banking APIs Cloud Service
With more than 1,800 ready-to-deploy business and foundational banking APIs, Oracle Banking APIs Cloud Service empowers banks to establish an open banking platform to accelerate innovation while complying with regulations. The solution equips banks to improve the customer experience and revenue opportunities by embedding their services across a growing ecosystem of partners including ecommerce portals, enterprise software, and more.
“The most recent IDC 2022 Worldwide Industry CloudPath Survey shows that nearly all banks surveyed plan to increase spending on all cloud deployment models,” said Jerry Silva, Program Vice President, IDC. “Including private cloud and public cloud infrastructure as a service (IaaS) and software as a service (SaaS), public cloud services are expected to grow at twice the rate of overall IT spending at 15% CAGR over the same five-year period, gaining a larger share of banks’ IT budgets.”