Under the slogan “Bank is dead, long live banking”, the Banking Industry Architecture Network (BIAN) meets these days in Madrid with FinTechs and representatives of major banks around the world to discuss critical issues for the future of the banking sector, such as, for example, , the need to innovate faster and offer customers new financial services. These are two objectives common to banking entities around the world that are addressing digital transformation processes, for which it is essential to have a common framework that helps them accelerate the development and delivery of their services.
The experts that participated
This is one of the conclusions that emerge from the round table that has taken place in open during the first of the days, in which have participated experts in technology of banks (Santander and the American PNC); of fintechs (MyTripleA and 2gether Bank), and technology providers (Epiphany and Sngular).
The participants agreed that the digital transformation of banking is an imperative and that technology is a key enabler. However, no less true is that between 60-80% of the budgets of traditional banks is used to maintain legacy or legacy infrastructure. Given this situation, it is important to accelerate the speed of change and rely on good technological partners that facilitate the evolution from centralized and monolithic environments to a distributed world, as well as a rapid transformation through the adoption of agile methodologies and technologies that add value to the business.
The representatives of the banking and fintechs have agreed that big data is the technology that will have the most impact in the short term
In his opinion, banking is not dead but those organizations that do not evolve to digital models will have problems or will not survive. The digitalization will allow them to focus more on the customer and accelerate the production of digital services, an issue that today fintech companies are leading.
Disruptive technologies
The representatives of the banking and fintechs have agreed that big data is the technology that will have the most impact in the short term because, combined with machine learning solutions, it greatly increases the predictive capacity of organizations in areas such as the measurement of risk.
They are also promoting the digitalization of banking microservices, cloud computing and blockchain architectures, the latter to the extent that it will allow to launch new business models.
About Open Banking
On the other hand, they pointed out that Open Banking with the opening of the data that entails, which in the European Union is regulated by the PSD2 regulation, will mean a new opportunity for income generation and for the consumer to access innovative banking services.
During the first day, held yesterday, the BIAN also announced the latest developments around its proposed common framework, called API Exchange, a series of 89 standardized API definitions that aims to promote the adoption of new digital services much faster.
The BIAN meeting
From March 19 to 21, the technology multinational Sngular is the host of the BIAN meeting, of which it is an active member and with which its experts have collaborated in the development of this set of APIs, created in a collaborative environment for ensure interoperability, security and regulatory compliance.
“For us it has been a pleasure to be able to open our sHub to an association like BIAN, since we share that spirit of collaboration and the need to promote an innovation ecosystem. In addition, we feel very comfortable in the banking environment after more than 20 years working with large entities in the sector”explained Alma Miller, country manager of Sngular in the United States.
Also published on Medium.