With negative interest rates looming in more countries, Yobota confirms its platform is fully capable of supporting zero or negative interest rates, with existing clients able to immediately adjust their products should the decision be made.
The announcement comes after the Bank of England questioned how prepared financial institutions are for negative interest rates as policymakers weigh up this action.
The flexible but robust tech capabilities of Yobota’s platform are able to handle unexpected marketplace challenges meaning its clients are already in a position to immediately accommodate any future announcement of zero or negative interest rates. Assurance is provided though the platform’s comprehensive simulation tooling.
Founded in 2016, London-based tech firm Yobota has built a fast, flexible, cloud-native core banking platform that allows clients to create and run innovative financial products. Yobota can fully support product customisations due to its unique system architecture and simulation engine.
James King, Co-founder and COO of Yobota, said: “The banking sector is evolving rapidly, and financial institutions must be prepared to quickly adapt to changing market and regulatory forces. The prospect of negative interest rates is a prime example: technological flexibility will be one of the key competitive advantages for those able to respond seamlessly to these changes.
“The Yobota Platform was designed and built for the 21st Century. After all, we saw negative rates become a reality across several countries during the financial crisis in 2008, and more economies now face the same situation. Crucially, our platform is inherently ready for this situation.”
Ammar Akhtar, Yobota’s Co-founder and CEO, added: “Policymakers are naturally concerned about the impact negative rates could have on financial institutions’ computer systems. A scenario in which tech issues prevent customers from utilising services, or one that risks impeding the soundness of financial firms, is something that everyone is keen to avoid.
“Supporting unforeseen requirements would generally require a huge amount of preparation from financial institutions as their systems are designed to mainly deal with historic trading practices such as positive interest rates.”
