Avduking Coreless Banking - The Future of Banking.

Avduking Coreless Banking – The Future of Banking.

Tidsstempel: 9. januar 2024 3:44
Kilde node: 3052424

I løpet av de neste ukene vil jeg gi en definitiv guide til den neste utviklingen av bankteknologi –
Kjerneløs bankvirksomhet. 

Amid a period of unprecedented digital and technological transformation, fast-changing consumer, business and market demands, and regulatory challenges, banks face a dilemma. At the heart of any bank sit several core banking solutions that govern the bank’s
ability to launch new products and serve customers across an increasing range of channels.

These core banking systems were developed decades ago on the technology platforms that were available at the time (between the 1950s and 1980s). Today, a smartphone has more memory and processing power at a fraction of the cost of the original mainframe
systems that banks spent millions of dollars buying. 

I dag er datamaskiner billigere, raskere og kraftigere, og de kan kjøre programvare som lar bankene skalere bedre, være mer smidige for nye produkter eller distribusjon (kanaler) og innovere. 

Dette er rett og slett ikke mulig på deres eldre teknologi.

Over time, as bank product lines grew, they introduced new channels, and regulators drove new requirements. Much of this was made possible by using newer technology. However, banks could not migrate or replace their core banking systems as they were central
to everything the bank did, so new systems were developed. These newer systems depended on the data held by the cores, so they either took copies of data or directly integrated with them. This created further complexity in being able to change or replace core
banking systems as doing so could require re-integrating tens and sometimes hundreds of other systems simultaneously.

These legacy cores could not support real-time banking and hence would have to be stopped overnight to balance ledgers, meaning that customers could not be served during those hours. Banks worked hard to ensure that the window the core could not serve customers
was kept to less than 8 hours! 

Drevet av Internett og smarttelefoner forventer kundene ikke bare at banktjenester er tilgjengelige 24-7-365, men de forventer at bankene innoverer og leverer nye produkter og funksjoner regelmessig etter hvert som de ser at de andre appene deres oppdateres.

Since the launch of Open Banking in 2017, Banks, for the first time, have faced a new dynamic in the battle for customers. FinTechs with access to banking data have leveraged new technology to reimagine customer experiences. In recent years, some banks have
realised they can scale customers by distributing their products through 3rd parties to provide embedded finance. 

The pace of technological change is increasing, and banks are now looking to leverage the power of AI. Where business logic was once written into software, banking software vendors and banks are replacing this software with embedded AI. Now leveraging the
bank’s data, AI can be used to dynamically make decisions or perform calculations rather than using coded logic, for example, to perform better KYC/AML checks, more accurate credit risk assessment, and personalise products and offers.

Derfor har vi sett bankvirksomheten og teknologien utvikle seg, og nyere banker (NEO Banks) utnytter disse nye teknologiene, og viser at de kan være mer smidige, billigere å drive og raskere å innovere.

A great convergence is happening, where banking channels, technology advances, and customer interactions collide to create the next Big Bang – coreless banking.  From the front end to the back end and touching every process in between, coreless banking is
a paradigm shift. Not only is it enabling banks and other business institutions to break free from the shackles of monolith legacy systems, but coreless banking’s API-powered infrastructure promises even more game-changing innovation and heightened levels
of product design, delivery, and customer personalisation.

Det mest spennende med denne siste iterasjonen er at bankene kan ta i bruk dette lettere enn med tidligere generasjoner av kjernebanktjenester. 

Inntil nylig var de eneste tilgjengelige alternativene for bankene å leve med det de hadde og prøve å omgå begrensninger eller å ta den betydelige risikoen og kostnadene ved å erstatte de gamle kjernebanksystemene. 

There is now a third option – Coreless Banking, which allows banks to innovate, be more agile and run at a much lower operating cost than before without impacting their cores. This is the banking equivalent of changing the engines whilst flying the plane.
By adopting MACH (microservices, API-first, cloud-native SaaS, headless) principles and the BIAN (Banking Industry Architecture Network) framework, they can choose from the best tools on the market today and provide a structure that makes it easy to add, replace,
or remove technologies in the future. With AI to drive dynamic decisioning or business flows, core banking can now be agile, flexible and future-proof, increasing its ability to innovate and reduce cost. This is technology nirvana. The banking promised land
is now one step closer.

So, what is coreless banking, and how can banks benefit from it? Over the next few weeks, my blog will profile the opportunities and challenges of being unshackled from decades-old infrastructure and how banks can navigate a safe course through a maze of
complex requirements to deliver seamless digital-first services that their retail and business customers crave. I’m also going to take you through three journeys banks have been through: 

1) Teknologireisen deres 

2) Reisen deres med hvordan de betjener kundene sine 

3) Hvordan utviklingen av bankvirksomhet har ført til kompleksiteten i en banks struktur.

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