Large US banks after spending large amounts of money and time with their old systems, are now trying to sell the technology to other companies have developed internally.
US banks like Goldman Sachs Group Inc, Morgan Stanley and JPMorgan Chase & Co are spinning out or selling a range of tools that relate to data security, mobile applications and systems in a flattening process of old technology.
Banks are not making much money from these efforts, especially compared to what they have had to spend on technology in recent years. Among the software and hardware upgrades, creating new applications and strengthen cybersecurity defenses, technology is becoming one of the biggest expenses of industry.
US banks together spent $ 62.2 billion on technology last year alone, according to a major investigation. Sale of foreign technology recovers only a small fraction of that amount. But the transfer of technology expense line to line revenue is a major change for big banks, which are on the hunt for new growth areas
Banks are looking for other ways to generate profits by Jonathan Lehr, managing director of venture capital firm Workbench that invests in technology startups business. Goldman has undoubtedly been the most aggressive promoter and seller of its own technology to outside companies, which has been doing since the 1990s.
The bank is working with the software company Synchronoss Technologies Inc (SNCR.O) to spin out a business that secures data on mobile phones, in part, through a software called loophole that allows employees to access job applications in their own mobile phones, and partly through an email service called Orbit.
