My colleague, Ambreesh Khanna, presented on how the growing use of micro-finance, is changing IT architectural requirements, and the risk management criteria. [There’s a number of references on google, or exalead, but the Guardian reported on how Mohammed Yunus won the Nobel Peace prize 18 months ago.]
So while it costs a bank a certain amount to manage a customer, if its liabilities to its customers are small, then the risk can be managed in a different way. If a bank has 1000, € 500K loans in its book, only a small number of defaults cause a problem, whereas, if its portfolio is reversed with ½ million, € 1000, then many more defaults are required to cause a problem. It also changes the nature of the traffic. Many low volume payments, mandate an IT and banking efficiency that will need to borrow from the web 2.0 architectures.
Originally posted on my sun/oracle blog, reposted here in July 2016.