Application Service Provider (ASP) / Software as a Service (SaaS)
See below for a list of independently written IBS Journal news and feature articles and IBS Intelligence Research vendor profiles, case studies and market analysis related to ASP/SaaS in order of publication date.
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Application service providers (ASP) offer an alternative to companies that do not wish to purchase and operate their own computer-based application software. Instead, the company uses the application provided by the ASP as an on-demand service, often over the internet or virtual private network.
This has several advantages for the user company. One is that the costs associated with using the service can often be closely tied to the transaction volume rather than being fixed costs associated with purchase and operation of systems and equipment. This is useful for start-up operations or low-volume users that wish to use sophisticated services. Small hedge funds or asset management firms that need sophisticated financial instruments but do not have the volume to justify expensive staff and systems often benefit from such an arrangement.
There are some disadvantages, however. Generally the user will have to accept the application in the form provided by the ASP and that modifications are not normally available other than parameter and option settings within the application. Another shortcoming is the perceived lack of control over customer data. This can be a particularly sensitive issue when it relates to high net-worth clients. Sometimes, the ASP may provide servers at the client site to house its data but the security of that data may still be subject to ASP staff access and maintenance.
Software as a Service (SaaS) encapsulates the idea of delivering specific business functionality on an on-demand basis. The services will be centrally hosted and users will pay for what they use. The difference between this and an Application Service Provider (ASP) model is the granularity, with ASP typically referring to applications rather than individual services.
A number of companies, such as Salesforce.com, have pioneered this approach. One advantage is speed, without the need to implement and manage applications, but it is an immature market and the trade-off is integration and breadth of functionality. As such, most instances to date are for narrow, self-contained areas of business.
A number of banking application providers have started to define SaaS strategies for delivering their solutions but, to date, real-life examples in the banking sector are rare.
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13 May 2013
Contents: Management Summary / Company Details / Origins Wall Street Systems / Functionality / Wallstreet Back Office/FX Technical Details / E-Commerce / Wallstreet Back Office/FX Service and Functionality / SOCX / RZB and Other Deals / Origins ...
10 May 2013
The UK government's entity for providing and administering loans to householders within its much-touted Green Deal initiative to reduce energy consumption has implemented Nostrum's hosted lending platform to underpin this.
08 May 2013
Long-known to be heading into the UK banking market with its own fully-owned bank, Sainsbury's has selected a broad hosted service from FIS to underpin this. There will be a phased migration from the systems of Lloyds Bank, which is selling its 50 per...
07 May 2013
A round-up of recent orders in the financial technology sector worldwide. New deals for BML Istisharat, Intrasoft International, Fundtech and Vsoft Corporation.
01 May 2013
Fundtech has added US-based QCR Holdings to its Cashplus customer base. The new platform, which includes the Smartnav enhancement, will enable QCR to centralise and consolidate all cash management operations of the financial institution and enable...
01 May 2013
Netherlands-based banking software vendor, Ohpen, has gained a first live site for its new system. This is Robeco, an international asset manager with €176 billion under management. 'We are very pleased to have such a major name as our full reference...
26 April 2013
Netherlands-based payments provider, Equens, is looking for takers for its new SEPA-compliant services for corporate clients in its home market. The new offering, dubbed Business Payments and Receipt, comprises of three modules which either come...
04 April 2013
A round-up of recent appointments and departures within the industry. Further reshuffling at 3i Infotech. Temenos, Broadridge, Sofgen and Vocalink are among the companies to announce new hires.
03 April 2013
Netherlands-based BinckBank has outlined its plans for the recently formed company, Able, which comprises BinckBank Professional Services and the Syntel technology business. The latter's Europort+ solution will now be run under the Able brand, and...
27 March 2013
Temenos has emerged from its restructuring with a rejuvenated plan to tackle North America. Head of the North America region, Russell Taylor, outlines the company's intentions when it comes to gaining a successful foothold in the US market, and...
26 March 2013
London-based wealth management solutions vendor, Third Financial Software, has gone public on the details of its joint venture with Itex, an IT services provider based in the Channel Islands. The partnership sees the launch of the former's Tercero...
07 March 2013
Following the recent go-live of the Negin Plus core offering from domestic vendor Tosan, Khavar Mianeh Bank in Iran has moved into the second phase of its IT project. Stage two involves the deployment of virtual channels and card payments switch....
06 March 2013
IBS analyses the 2012 ups and downs of the Russian market, highlights notable trends, and compares the new-name core banking software wins of major domestic players.See also:
06 March 2013
A round-up of recent appointments and departures within the industry. New hires at Alaric Systems, Sentenial and Barclaycard US. 3i Infotech, Misys and Open Solutions announce departures.
06 March 2013
A round-up of recent orders in the financial technology sector worldwide. New deals for Phoebus Software, Computer Services Inc and the London Stock Exchange gain new deals.
04 March 2013
After futile attempts to implement international banking software, Germany-based Honda Bank has turned to a local vendor, COR&FJA, and its core offering, Corbas. Meanwhile, COR&FJA is searching for a new chairman of the board.
15 February 2013
Ion Trading continues its acquisition spree, with the latest target being Ffastfill, a UK-based provider of front-to-back office derivatives trading solutions on a hosted basis. Ion Trading already holds a quarter of the company's shareholding.
15 February 2013
Visa is targeting the emerging markets with a new mobile money offering, underpinned by the technology of Fundamo, a South African payments software vendor acquired by Visa in 2011. The first four takers are mobile service provider Aircel, ICICI Bank,...
06 February 2013
US-based Libertyville Savings Bank has chosen the hosted version of Jack Henry's Core Director to replace its 25-year-old onsite system from a Nebraska-based supplier, Modern Banking Systems. Worksheets for the deployment are now being drawn up and...
05 February 2013
Casey State Bank, a US-based bank with over $250 million in assets, has selected the hosted version of Nupoint core banking solution from Computer Services Inc (CSI). The bank is replacing its existing in-house system, Precision from Fiserv, and...
25 January 2013
Fundtech has launched a hosted version of its Global CashPlus (GCP) cash management software offering. It is aimed at smaller banks, as well as new and developing markets. More products are to follow the hosted route, says the vendor.
16 January 2013
Infosys' Finacle is Ratnakar Bank's new centralised core platform that, the bank believes, 'will take it to the next level'. Finacle has replaced the decentralised IT set-up based on the TC4 core banking offering from CMC, a subsidiary of Tata...
11 December 2012
Against a backdrop of a growing economy, Mauritania's banking sector is expanding, with a strong Islamic aspect to this. SAB is a recent winner, having been selected by Maurisbank, while Path has added a couple of takers as well.
06 December 2012
Illinois-based Busey Bank, with assets of $3.5 billion, is adjusting to its new core solution, Nupoint, provided by Computer Services, Inc. (CSI). According to Busey Bank's CIO, two months into the go-live the bank is beginning to see the full...
03 December 2012
A round-up of recent orders in the financial technology sector worldwide. Fundtech, BML Istisharat and Infosys are among the vendors gaining new deals. Pointbank in the US, Siam Commercial Bank in Thailand, Bank of China and others acquire new...
28 November 2012
IBS's supplements give us the opportunity to dig around our chosen subject areas and, before we start, it isn't always predictable what we will find. When looking for interesting lending system stories, for instance, we weren't expecting cloud...
28 November 2012
Can Mexican micro-lender, Compartamos Banco, succeed with SAP where it failed with Temenos? It is mid-project as it seeks to implement a new core system and, while running late, believes there is the commitment from the supplier to succeed this...
28 November 2012
As the payday loan industry continues to boom, LendProtect UK and InnoTech have partnered to launch a new online lending solution for the short-term lending market, LendFusion. How and why did they seek to join forces?
07 November 2012
US-based Infor has launched a new version of its Complete Billing System (CBS). It is Java and web-based, can support multiple data sources and platforms, and is available on a SaaS basis. This development represents the vendor's desire to move...
06 November 2012
This section provides the results (summary tables and data sets) to the following questions posed to respondents:How important are these banking channels and operating platforms to the strategy of the bank? (Internet - Branch networks -...
01 November 2012
A round-up of recent orders in the financial technology sector worldwide. TCS, Sterci and Torstone Technology are among the vendors gaining new deals. Daiwa Capital Markets Europe, Victoriabank and others acquire new software.
01 November 2012
Data sits at the heart of every bank, but what value does it have if it cannot be easily accessed and in good time? IBS talks to Nordea International about how to get at the truth.
23 October 2012
A new player on the UK market, Cambridge & Counties Bank, is due to select a new core banking system in the next couple of weeks. The FSA-regulated bank has a unique ownership structure, being held by Cambridgeshire Local Government Pension Fund and...
19 October 2012
Chicago-based Oak Bank is preparing to go live with Fiserv's Premier core banking system, on an ASP basis, after more than 20 years of having systems in-house. With the new technology in place, the bank hopes to take on the likes of JP Morgan...
17 October 2012
When Hawaii National Bank wanted to explore outsourcing to reduce periodic capital expenditures and operational expenses, it chose Harland's PhoenixEFE platform as its foundation. The platform will replace the existing Premier system from...
05 October 2012
Russia-based banking software vendor, CFT, is growing its outsourcing business in the core banking software space. Six domestic banks are now live on the ASP version of the vendor's offering.
14 August 2012
The Hitachi Capital Group in the UK has replaced Sungard's Integrity treasury management system with a SaaS-based offering from Reval.
26 July 2012
India-based TCS Financial Solutions hopes to crack the US banking market with an ASP offering of its core banking system, Bancs. For this it has partnered with managed IT and services provider Savvis. One taker has just been signed.
04 July 2012
The latest gossip from around the industry.
02 July 2012
The outsource sector is in turmoil as a model that is tied to the fortunes of customers takes a pounding. Long-standing players are struggling and this, in turn, is only likely to strengthen the long-held reluctance in many financial institutions to...
02 July 2012
The Canadian banking outsourcing market has been slow to take off but demand is increasing. One outsource provider tells IBS how it is responding to domestic needs.
21 June 2012
Uruguay-based Top Systems, developer of the Topaz Banking core system, has joined Stefanini Group. Topaz will continue to be developed and marketed, and will gain the option of an ASP deployment. The mid-tier Latin and Central American banking sector...
18 June 2012
Plus Markets Group, a failed UK stock exchange and market operator, has sold its trading technology business, Plus-TS, to Forum Trading Solutions. The solution will be rebranded and offered as an 'exchange-in-a-box' on a fully-hosted basis to...
10 June 2012
Crédit Municipal de Paris has a monopoly for pawnbroking in the city and is starting to offer savings products to help finance its lending. It has gone live with a Software-as-a-Service offering from SAB to support these products.
28 May 2012
Who are the major French core banking system players operating in North Africa, and what are they offering? Plus, core system sales in North Africa.
17 May 2012
The Scandinavian vendor has unveiled a new securities product for the UK and Irish markets, Tieto Securities. The first taker is expected later this year.
Article: Banks and vendors put system implementations at risk by not linking contracts to business objectives
09 May 2012
All too often during a banking system selection, the contracting and negotiation stages are detached from the overall project, sometimes being delegated to a separate purchasing department. What is often forgotten, however, is that contracts are...
02 May 2012
Société Générale in the US has switched from the in-house version of Misys' Summit FT structured product trading system to an ASP delivery model, to become the first outsourced user in North America.
Article: Free Webinar: How To Improve Negotiation and Contracting Techniques with Technology Vendors
23 April 2012
Our free webinar How To Improve Negotiation & Contracting Techniques with Technology Vendors took place on Wed 25th April 2012 (a recording of the webinar is available to view on our
04 April 2012
A round-up of recent orders in the financial technology sector worldwide. Dovetail, Temenos and BML Istisharat are among the vendors to sign new deals. Bank Mayora in Indonesia, Crédit Agricole in Belgium and Arab Investment Bank in Lebanon and others...
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