Although I do see the need, I don't see the innovation from Big Finance. As with anything else trying to disrupt an entrenched industry, it will take early wins to get the ball rolling. In order for this to work Banks would have to become tech shops with all that entails, this has been discussed on HN previously. It is just not in their nature. Banks don't do board shorts and dogs in the office. Modern techies are loathe to work for banks. Where does the innovation come from?
> Zachary Townsend Co-Founder of Standard Treasury (YC S13). Angel Investor. Statistician.
Service customization was a long run topic, in banks (esp europe and americas) , not that they were less agonized with technology but most corporate and wealth clients (of these banks) enjoyed lots of (un-federated) customization benefits.The very costs of these services led to them being so.(eg we have very few payment gateways in town , even today!)
However with depreciating computation costs these services opened up for federation , hence more customization.
However the repo-runs etc in the recent past led some raising very skeptical views of these.(e.g. fee based rev estimation on ABCP charges etc...)
Its however a very complex and dynamic market.Long time back DB research had a paper on complexities in retail pricing.(https://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD000...)
Overall the thing being:service federation, service eco-system , service-customization etc are not something new banks for banks (that they have to learn from others)
Its only the revenue vs cost benefit that keept it away from these.
With regulatory policy changes in investment-banking post the repo-run era , banks are left with fee-based income as one more tap to top!Thus we see these banks doing these nowadays(as though suddenly jumping).Its not tech that led to these decisions.
Usually in reatail-banks : decisions are not driven by successful technologies , but rather by late application of those ...