Oracle’s new launch
In order to give the banking system a different look, Oracle (ORCL) Netsuite introduced an open banking system called “Netsuite Banking as a Service.” Launching the new platform will help establish a strong connection between the bank and its clients. Implementing the new technology will likely boost business automation and provide a secure environment for performing daily tasks, which will improve the bank’s efficiency. The new technology is expected to create more opportunities for the banks by driving new business models and revenue streams.
The ongoing digitalization trend has forced most organizations to adopt new technologies. The growing demand for cloud computing and the increased usage of automation in different enterprises caused Oracle Netsuite to enhance its financial ERP (Enterprise Resource Planning) solutions.
Oracle bought cloud-based ERP operator NetSuite in July 2016 for ~$9.3 billion. Acquiring NetSuite might allow the leading database management provider to boost its SaaS cloud platform and reduce the gap between other big cloud operators like Amazon’s (AMZN) AWS (Amazon Web Service) and Microsoft’ (MSFT) Azure.
Netsuite offers a wide array of cloud-based financial products to its clients, which provide cash forecasting, trade finance, instant business loans, and credit lines. Allowing these services at a rapid pace and in a secured environment might improve customers’ relationship with the bank. In the above graph, you can see the revenue growth of Oracle’s total cloud and license revenues in the last five quarters.