Commentaries and insightful analyses on the world of finance, technology and IT.

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The Basel III Greenhorn

Over my previous blogs, I have attempted to touch upon some not-so-widely-debated facets of Basel II and its impact on the crisis. While I presented selected aspects of Basel III as retrospectively applying to the Basel II era, I noted that the obvious - the evolution of Basel (proactively and reactively). Having said that, I wanted to stress test, one of my older concepts (the need for a unique technology framework to cater to this evolution), in a more comprehensive fashion. So, here goes...


[If you have been reading my earlier posts, you may want to directly skip to pages 4 and 5]


Thanks for sharing this article - Clean and concise summary of the crisis and most importantly how technology can address these items. With products, over the years, customers have been at the mercy of the vendor. Besides, as a decision maker, I have been in situations where vendors supply different version of their products to different customers and newer versions are treated as upgrades for the existing customers, forcing them to pay up. In this evolving compliance landscape, I see your solution as quite promising. Cheers

This is fantastic stuff, Vikram. How do you see this in the context of inter-application communication, where not integrated vis-a-vis componentisation?

I agree. Let me illustrate - We are doing an EDM program in our bank right now. This is a tried and tested realm for products. There are industry leading solutions. All our competitors use products. But, we had our needs and having carefully considered them, we are not doing products, we are not developing a custom solution. What we are doing is developing our own 'framework' which would allow us to apply irrespective of data domain while keeping the framework business agnostic and hence more flexible and faster to implement. If an IT vendor offers the same, then why not? So, I see your point of view as very convergent on what we have done and having been through this, the merits are all too apparent. Generic business agnostic technology frameworks are definitely the way to go here...

Thanks Gary. You raise a fine point. In many cases, while componentisation may provide for reusing or sharing available "invested" infrastructure, the information need not be "harvest-able" (for the lack of a better word). Needless to say, this presents a strong case for examining means of inter-application communication and I can't think of a better means to accomplish the same than (middle-ware based) messaging. This allows for standardized means of communication whilst allowing apps to be loosely coupled.

If you observe, I am still keen on using infrastructure that the organisation is already using / placed their money on. Many banks offer this environment in a managed service mode for use for various applications / framework.

Sara - I know precisely what you mean. I've consulted for a similar large scale program myself. Infact, my next blog would be on EDM / MDM...

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