We judge long periods between releases, which you often see at the big banks, as risky because it means that there is more code in which bugs could occur,” a spokesperson for Starling said.
While Monzo is using Amazon cloud for their services, Atom bank uses Unity engine to make their app; the traditional banks are trying to make the same experience with the old COBALT language, that seems like can’t be adequately embedded with the new services as mobile applications.
🦖 COBOL (Common Business-Oriented Language) is a programming language first developed in 1959 which still drives the mainframe computers of traditional financial institutions such as lending banks.
The language itself has updated and can cover necessary services: deposit accounts, check-clearing, card networks, mortgages, loan ledgers and a string of other services.
Although the last IT glitch of Natwest and Royal Bank of Scotland on 5th October does not stop reminding us, that, while challenger banks have stability problems, it is understandable due to everyday development and improvement of their system, traditional banks are usually afraid of the touching system, due to the complexity of legacy systems that stand in the core.
It shows us that large lander banks are too large in modern time, and can’t organize their work from inside. Maybe it’s time to open their doors to open banking, and give young startups opportunity to develop the infrastructure around lending banks, and focus on the massive amount of data that Fintech can use through API?
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