Chief Executive Andrea Orcel of UniCredit (CRDI.MI), located in Italy, stated that the company’s recent enhancements to Buddybank, its mobile banking service, will facilitate its ultimate shift to a cloud-based core banking infrastructure.
Conventional banks must overcome the difficulty of migrating their IT operations to the cloud and getting rid of the mainframe system, whose programming language is becoming harder to find young employees who can use.
Buddybank, which UniCredit launched in 2018, is currently serving 400,000 people. Most of these users are new acquisitions who did not previously bank with the company.
UniCredit’s customers will now have the option to transfer to Buddy R-Evolution. This updated mobile app will enable access to the company’s services and goods, such as loans.
It will also provide other services, like real estate guidance. Buddy users may rely on specialist bankers to provide advice in addition to help from support workers. Orcel stated during a news conference that UniCredit has successfully unified the backend architecture, enabling Buddybank and standard commercial banking activities.
“Up until now, there were two separate banks; it’s no longer so,” he stated. UniCredit’s third-quarter results were presented to analysts on Tuesday, and Orcel stated that the bank would “accelerate on Phase 2 of our digital transformation… moving decisively from on-premises (IT software) to cloud with a unified and efficient way of hosting all data and applications.”
Despite exceeding its quarterly projections and improving its revenue prediction for the year, UniCredit declined to increase its guidance for 2023 earnings and shareholder dividends, citing more time to consider allocating the record profits.
Customers of UniCredit just need to download the Buddy R-Evolution program to switch to accessing their existing account without having to modify their bank information. Customers of competitor Intesa Sanpaolo (ISP.MI), steadily transferring younger, tech-savvy clients to its cloud-based mobile bank Isybank, experienced interruptions this month due to a change in bank data.
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