SOA eased the way for recent shotgun financial mergers

SOA eased the way for recent shotgun financial mergers

Summary: These are times that try banks' souls.  Over the past few months, some financial services companies have been vaporized, and others have been absorbed or merged to save their skins.

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These are times that try banks' souls.  Over the past few months, some financial services companies have been vaporized, and others have been absorbed or merged to save their skins.

It's possible that SOA efforts that have been underway at these organizations in recent years may have also saved their skin. That's because most of these government-backed (or government-prodded) mergers have been "shotgun weddings," as described by CapGemini's Sean Drewitt in a recent report in Bank Systems & Technology. There's a lot of technology within the merged parties that need to be somehow brought together.

There's plenty of integration work ahead. And since these merged financial organizations have had SOA in place, the unions may go a lot more smoothly with less risk. As Sterling Commerce's Jim Gahagan put it, "The fact that more banks are adopting a service-oriented architecture significantly helps when merging IT systems, according Gahagan. "Organizations that have adopted SOA tend to be more adaptable and nimble in how they perform a migration.  It makes things much easier than doing individual migrations."

Topics: Enterprise Software, Banking, Browser, Software, Software Development

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  • Better governance, lower operational overhead and an improved risk profile

    Financial institutions, including banks, have always grown through acquisition. In fact, SOA was originally introduced in the financial services industry to help mitigate the risk of operational disruption during the integration process. Two keys to the rapid, large-scale mergers and acquisitions we?re seeing today are alignment in canonical message formats and effective linkage with master data management (MDM) processes. These elements smooth interoperability among independently developed SOA-based environments and limit the cost and risk associated with ?shotgun? mergers.

    In addition, clear visibility into file transfer activity--including secure, reliable delivery and exception-based alerting--increase governance and limit operational overhead in large-scale, dynamic, SOA-based environments. Financial institutions that get this short list of right things right will emerge from these large-scale mergers with better governance, lower operational overhead and an improved risk profile.

    Daryl Eicher
    VP, Industry Solutions
    Axway Inc.
    DarylEicher