Financial Services Firms Yet To Explore Full Potential Of Mashups

A new report by Aite Group has found that the financial services industry could cut costs and better manage risk by using Mashups to co-ordinate myriad business processes. The December 2008 report, called ‘The Case for Mashups in Capital Markets’, claims Mashup technology can support many top objectives in risk management, as well as multiple business processes deemed too small for a full-blown technology project. Although many firms will face budget constraints in the coming year, Aite Group predicts firms will spend $35 million on Mashup technology in 2009.

With Mashups, employees can improve labour-intensive manual processes by putting business processes and reports on-line in just minutes. Mashups make it easy to combine multiple content sources and processes into a new, single view - all without writing any code. Mashups can help tackle the backlog of applications that IT will never be able to build due to lack of time or funds.

The Aite Group report, which surveyed senior technology executives at 13 major capital market firms worldwide, estimates that paper and e-mail account for 60 percent of the co-ordinated processes between business units in capital markets. This signifies tremendous potential for more streamlined processes. Moving business processes from paper or e-mail into a Mashup improves productivity and provides accountability and traceability as well as a means to measure and fix bottlenecks.

“In addition to better communication across departments, firms can use Mashups to simplify credit services, account openings, data management, research and many other areas in which small process improvements can reduce operational risk and cut costs by creating time efficiencies,” said Adam Honore, senior analyst with Aite Group and author of the report. “Firms would be wise to explore this underutilised process improvement tool.”