Fast technology adoption is great but does it offset other weaknesses in banking?

Long story short, yes you can apply the ‘Betteridge’s law of headlines’ to that question – the answer is ‘no’. I gave an over view before of the different options and one would assume that I’d go with something like BNZ given Apple Pay/Android or even ANZ since they too have Apple Pay but nether of them I am with because ultimately I’ve found that that banks who adopt Apple Pay and/or Android Pay tend to be banks with major short comings that use such technology to mask over the fact that they’re still very much behind the curb when compared to the competition.

My theory about who will make the big leap next? If there is going to be an adoption of Android Pay or Apple Pay then I could see it being either Westpac or Kiwibank but I’m leaning towards Westpac given that Kiwibank is still dealing with the SAP debacle and Westpac, as part of their branding effort, want to demonstrate that they’re up with the play and not falling behind although strange enough at the moment it appears that Apple Pay and Android Pay only support Visa at the moment (BNZ’s own Mastercard credit card isn’t supported on Apple Pay or Android Pay).

Regarding ASB, there was an interesting response on 8 January on the App Store for iOS where the developer replied, “We’ve got some other enhancements that may help in the pipeline so keep an eye out over the next few months” which make me wonder whether the work being done with the SAP migration involves moving away from the old custom built solution to one that brings the system inline with the work done by the Commonwealth Bank (ASB’s parent company) which probably explains why ASB policy seems to be drifting closer inline with Australian policy such as on credit cards the payment goes off the highest interest first where as before it was just like a stack and the money was taken off the bottom of the stack so if you did a cash advance by mistake then it’ll be pinging at that high rate of interest until that transaction reaches the bottom of the transaction stack and paid off.

Regarding the Kiwibank SAP fiasco ( link ), I find it interesting that people were sounding alarms even before the project started ( link ) and yet in the infinite wisdom the advice was ignored resulting in a mess that results in a total project write down with nothing to show for millions wasted on the project (they’ve decided to scrap the whole project). So with all that happening – what is the alternative? The core banking infrastructure need to be upgraded but what are they going to do? Maybe having a look at Oracle’s FLEXCUBE could be an option given that 9 credit unions have deployed it so far  without a Kiwibank/Insis like fiasco.

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