US-Based Oracle Making Waves in the Banking Industry
Not long after we heard news that Apple has taken advantage of "open banking" in the UK to introduce a new feature allowing customers to connect eligible debit and credit cards in their Apple Wallet, Fintech Futures reports that US-based software provider Oracle has made two significant deals in 2024.
The first major deal is signing the first taker for its Flexcube core banking solution in Slovenia:
Established in 1992 and based in Ljubljana, SID Bank operates as a promotional development bank and export credit agency (ECA), providing insurance and financing on behalf of the Republic of Slovenia to promote internationalization for the country’s export companies.
As part of its wider endeavor to enhance Slovenia’s international business competitiveness, the bank has now been revealed as one of the latest adopters of Oracle’s Flexcube.
The second deal was announced two days after the previous deal was made public, as Navy Federal Credit Union (NFCU), the largest credit union in the US, signed with Oracle for its cloud and account servicing technology. It's reported the NFCU will be utilize "four different Oracle solutions to further enhance automation and operational efficiency." These include:
- Oracle Banking Account Cloud
- Oracle Fusion Cloud Enterprise Resource Planning (ERP) system
- Oracle Cloud Infrastructure (OCI)
- Oracle Fusion Cloud Human Capital Management (HCM)
What Does This Mean for Banks?
Not unlike other big tech firms, Oracle is also looking to get a bigger piece of the banking industry pie. What makes Oracle different than other big tech firms like Apple or Twitter/X is their product offerings.
As noted in the Fintech Future articles, each of these two deals are distinctly different. One provides core banking and payments technology to the bank, while the second deal provides automation capabilities for another bank. It appears that Oracle is taking advantage of their technological expertise and expanding into several different banking applications.
Of course, many banks won't hang their hats on Oracle taking over banking, but it shows that Oracle is finding ways to make noise in the industry and cannot be taken lightly. Banks will continue to see new and exciting technologies rise over the next few years.
Don't be distracted, however, by the big and shiny new thing. Always vet out companies and products to ensure what they say matches what you can expect -- just as banks look to update their systems with technologies like AI and Deep learning for check process and fraud detection. Though Oracle has brand recognition for their software, their focus is not primarily on the needs of banks which could lead into trouble down the line.