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.

We cover ASP/SaaS regularly in our flagship IBS Journal. Click here for more information and to subscribe online >>

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.

You may also be interested in our Banking Systems Survey 2012/13: 101 banks across 56 countries share technology plans, priorities, IT budget trends, and other major insights >>

 

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Article: Wall Street Systems: Wallstreet Back Office/FX, Wallstreet Suite

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 ...

Article: UK's Green Deal Finance Company live on Nostrum lending platform

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.

Article: Sainsbury's Bank opts for FIS as banking technology partner

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...

Article: Who's Bought What? – May 2013

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.

Article: Fundtech onboards new cash management client in the US

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...

Article: Brand new core banking offering gains first live site

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...

Article: Equens offers new SEPA services for Dutch corporates

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...

Article: On the move – April 2013

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.

Article: BinckBank lays out strategy for Able business

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...

Article: Temenos fleshes out North American strategy

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...

Article: Third Financial goes public with Itex partnership

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...

Article: Phase two of Tosan implementation underway at Khavar Mianeh Bank

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....

Article: Russian vendors Sales League Table 2013 (results Jan-Dec 2012)

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:

Article: On the move – March 2013

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.

Article: Who's bought what? – March 2013

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.

Article: Honda Bank implements new core banking system

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.  

Article: Ffastfill next in line to be taken over by Ion Trading

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.

Article: Visa launches a fully hosted plug-and-play mobile money service

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,...

Article: Libertyville Savings Bank selects Jack Henry's Core Director

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...

Article: Casey State Bank selects Nupoint from CSI

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...

Article: Fundtech launches CashPlus On-Demand

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. 

Article: Ratnakar Bank in India live on Finacle from Infosys

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...

Article: SAB gains second Islamic taker, Maurisbank in Mauritania

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.

Article: Busey gets to grips with Nupoint banking system from CSI

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...

Article: Who's bought what? – December 2012 / January 2013

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...

Article: IBS Journal Lending Supplement 2012/2013

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...

Article: Case study: Compartamos Banco – Cloud on the horizon

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...

Article: Product spotlight: LendFusion – To tide you over

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?

Article: Infor unveils revamped Complete Billing System

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...

Article: Relevant other technology

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 -...

Article: Who's bought what? – November 2012

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.

Article: Case study: Nordea – Digging for gold

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.

Article: New UK entrant nears core system decision

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...

Article: Oak Bank nears go-live of Fiserv's Premier solution

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...

Article: Hawaii National Bank implements Harland's PhoenixEFE platform

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...

Article: CFT's outsourcing initiative gathers momentum

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.

Article: Reval ousts Sungard's Integrity at Hitachi Capital UK

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.

Article: TCS targets US banking sector with Bancs on a hosted basis

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.

Article: Backchat – July / August 2012

04 July 2012

The latest gossip from around the industry.

Article: IBS Journal Outsourcing Focus 2012: Overview

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...

Article: Case study: IFDS Canada – Canadian club

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.

Article: Top Systems, core banking vendor in Latin America, acquired by Stefanini Group

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...

Article: Forum Trading Solutions acquires Plus-TS

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...

Article: SAB SaaS solution live at Crédit Municipal de Paris for savings products

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.

Article: Analysis: Key core banking vendors – Leaders of the pack

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.

Article: Tieto launches end-to-end securities system in UK and Ireland

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...

Article: Société Générale in the US first outsourced user of Misys Summit in North America

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

Article: Who's Bought What? – April 2012

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...