Cost Of In-Memory Technology Is Biggest Inhibitor For Cos: IDC

A recent report by IDC Financial Insights finds that among challenges associated with in-memory computing, the cost of the technology and integrating multiple sources and types of data were highlighted as the biggest inhibitors for financial institutions.

IDC Financial Insights highlights that banks will make a progressive transition to in-memory computing and analytics as opposed to performing an archetypal “big bang” transformation. The first step is to raise awareness among institutions, but it is encouraging to note that in-memory computing has already begun to gain traction in the banking industry, particularly among top-tier institutions engaged in investment banking and capital markets activities.

The report also acknowledges two vital activities that need to happen in conjunction with the implementation and ongoing use of in-memory analytics by financial institutions:

• Getting in-memory analytics onto the desktops of operational end users in the front office, such as financial controllers and market risk managers, is vital. In-memory is not the sole preserve of those in a business analyst support function in the middle- or back-office environment.

• Institutions will need to plug business-specific calculations into any new in-memory-powered analytics system, along with developing automated processes and decision-support applications.

“In-memory analytics represents a genuine paradigm shift in the way that financial institutions can interrogate and understand their business information,” said Alex Kwiatkowski, Research Manager, EMEA Banking, IDC Financial Insights. “Adopting in-memory technologies will substantially improve operational performance in key areas such as risk management and fraud reduction. Given the current — and likely future — state of the global financial services sectors, this is one technology that banks cannot afford to ignore.”