Episode 8:

Ending the initial costly investment

 

In CBS

The business plan of a Core Banking System is structured to absorb a massive investment at set-up followed by a reasonable run of management and maintenance costs. Opening a new bank therefore represents an initial investment and thus a significant financial risk, especially in an often-unpredictable market with increasingly volatile customers and exotic competitors.

 
 

In DBS

There is no significant initial investment. Selling SAAS (software as a service) dramatically reduces the risk of starting a bank and spreads the cost by making it proportional to the success of the business.


Conclusion

More importance is thus given to the "running" phase than the set-up phase.


Next episode:

The eighth difference between CBS and DBS:

The opposition between the safe culture and the ecosystem culture

To be continued...