Under the slogan “Bank is dead, long live banking”, the Banking Industry Architecture Network (BIAN) brings together these days in Madrid FinTech companies and representatives of major banks in the world to discuss critical issues for the future of the banking sector 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.
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).
Digital transformation is a YES
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.
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 fintech companies have agreed that big data is the technology that will have the most impact in the short term since, combined with machine learning solutions, it greatly increases the predictive capacity of organizations in areas such as measurement of the risk.
Open Banking
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.
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, the BIAN also announced the latest developments around its common framework proposal, called API Exchange, a series of 89 standardized API definitions that aims to promote the adoption of new digital services much faster.
The aim is to create a collaborative environment
From the 19th to the 21st of March, the technological multinational Sngular is hosting the meeting of the BIAN, 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 to 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.