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I've said this here before, but when I worked at a big bank all the visionaries weren't worried about other banks, they were worried about Google and Ebay. Th

I've said this here before, but when I worked at a big bank all the visionaries weren't worried about other banks, they were worried about Google and Ebay. The core business of a bank is built on hardware and software. They knew that a bank built on distributed systems instead of mainframes could beat the big banks on features and cost. It'll be interesting to see if BankSimple can scale up fast enough to compete or if it'll attract the attention of someone with even deeper pockets who can catch up by simply outspending them.

alwillis 15y ago
There are lots of banks that could easily outspend BankSimple, what they lack is vision, which is far more scarce than money these days.
- jtbigwoo 15y ago
  Banks are in a rough spot, actually. The big ones have a HUGE installed base which makes any changes very, very difficult. My division of the bank had tens of thousands of cobol jobs that ran daily or weekly. (We also had thousands of ETL jobs, web apps, etc. that depended on those cobol jobs.) Trying to shift the core functionality away the mainframe would have been a decade-long boondoggle.
- alastairpat 15y ago
  As somebody else mentioned, it's not just about money. Here in Australia, we have four massive banks. They're some of the most profitable in the world and three of them are currently in the process of major technology renewal programmes. The problem is that the systems are so complex, inter-linked and old (the last upgrade was apparently in the 80s) that making changes is a nightmare. Indeed, one particular bank, NAB, has had huge problems leaving people unable to access their money for several days, caused by upgrades. Downtime is completely out of the question and making radical changes (could render some obscure system inoperable) is impossible. While there is a lack of vision, I think it goes far deeper than that.
yxhuvud 15y ago
I believe there will be a big shift coming, but not that it will come from established tech companies in the developed world. Rather, I believe it is banks from third world countries that will push the envelope. This for a few reasons: They already have a large customer base. Their economies are growing very fast, which creates a steadily increasing pressure on old systems. Also, this creates shifting marketplaces where new players in the area can pop up a lot more easy than in old settled markets. Less preconceptions on what can or cannot be done.
foobarbazetc 15y ago
Considering that BankSimple is "just" a distributed interface to a mainframe system... that's an amusing statement.

alwillis 15y ago

There are lots of banks that could easily outspend BankSimple, what they lack is vision, which is far more scarce than money these days.

jtbigwoo 15y ago
Banks are in a rough spot, actually. The big ones have a HUGE installed base which makes any changes very, very difficult. My division of the bank had tens of thousands of cobol jobs that ran daily or weekly. (We also had thousands of ETL jobs, web apps, etc. that depended on those cobol jobs.) Trying to shift the core functionality away the mainframe would have been a decade-long boondoggle.
alastairpat 15y ago
As somebody else mentioned, it's not just about money. Here in Australia, we have four massive banks. They're some of the most profitable in the world and three of them are currently in the process of major technology renewal programmes. The problem is that the systems are so complex, inter-linked and old (the last upgrade was apparently in the 80s) that making changes is a nightmare. Indeed, one particular bank, NAB, has had huge problems leaving people unable to access their money for several days, caused by upgrades. Downtime is completely out of the question and making radical changes (could render some obscure system inoperable) is impossible. While there is a lack of vision, I think it goes far deeper than that.

yxhuvud 15y ago

I believe there will be a big shift coming, but not that it will come from established tech companies in the developed world. Rather, I believe it is banks from third world countries that will push the envelope. This for a few reasons: They already have a large customer base. Their economies are growing very fast, which creates a steadily increasing pressure on old systems. Also, this creates shifting marketplaces where new players in the area can pop up a lot more easy than in old settled markets. Less preconceptions on what can or cannot be done.

foobarbazetc 15y ago

Considering that BankSimple is "just" a distributed interface to a mainframe system... that's an amusing statement.