back Back

Defining the future of banking

Acode, Afterpay, Alexa, Amazon, Asia Pacific, Australia, BNPL, Buy Now Pay Later, Contactless, Credit Cards, Europe, Klarna, Lending, Payments, PayPal, Point of Sale, POS, Qr, revolving credit, short-term credit, Wallet, Walmart

November 23, 2021

  • BIAN
  • Big Data
  • Coreless Banking

While disruption from the pandemic has highlighted many opportunities for development across multiple industries, it has especially emphasised the need for digital transformation within the financial services market.

by Hans Tesselar, Executive Director, BIAN 

At the beginning of the pandemic, financial institutions realised what it meant to be truly digital. Research from EY found that 43% of consumers changed the way they banked due to Covid-19 favouring a more digital approach. Almost overnight, banking organisations were forced to shift their focus towards becoming more agile, resilient and, above all, digital.

Despite the importance of transformational efforts, the financial services industry continued to come up against obstacles, highlighting the need for urgent industry action.

Digital-First Customer 

The financial services sector has realised that without the comprehensive digital infrastructure necessary for today’s environment, they are unable to bring services to market as quickly and efficiently as they would like – and need. The extensive use of legacy technology within banks meant that the speed at which these established institutions could bring new services to life was often too slow and outdated.

Hans Tesselar, Executive Director, BIAN

This challenge is also complicated by a lack of industry standards, meaning banks continue to be restricted by having to choose partners based on their language and the way they would work alongside their existing ecosystem. This is instead of their functionality and the way they’re able to transform the bank.

To move forward into the ‘digital era’ and continue on the path to true digitisation, banks need to overcome these obstacles surrounding interoperability. Additionally, with today’s digital-first customer in mind, financial institutions need to take advantage of faster and more cost-effective development of services. Failing to provide these services may force customers to take their business elsewhere.

One thing is certain, consumers will continue to prioritise organisations that can offer services aligned to both their lifestyle and needs.

Coreless Banking 

The concept of a ‘Coreless Banking’ platform is one that supports banks in modernising the core banking infrastructure.

This empowers banks to select the software vendors needed to obtain the best-of-breed for each application area without worrying about interoperability and being constrained to those service providers that operate within their language. By translating each proprietary message into one standard message model, communication between financial services is, therefore, significantly enhanced, ensuring that each solution can seamlessly connect and exchange data.

With the capacity to be reused and utilised from day one, and the ability to be used by other institutions, Coreless Banking provides these endless opportunities for financial services industries to connect, collaborate and upgrade.

The Future is Bright

It’s clear that the world is facing a digital awakening, and banks are eager to jump on board. Ensuring that the rapidly evolving consumer has everything they need in one place has never been more essential, and the time to enhance the digital experience is now.

Previous Article

November 17, 2021

Trade surveillance and how to improve accuracy and detection rates

Read More
Next Article

November 26, 2021

Payments – a changing retail landscape

Read More

IBSi News

Hecto Financial, Master Account Management Solution, FinTech, Cross Border Payments, Korea

March 01, 2024


Hecto Financial eases cross-border transactions with new solution

Read More

  • Daily insightful Financial Technology news analysis
  • Weekly snapshots of industry deals, events & insights
  • Weekly global FinTech case study
  • Chart of the Week curated by IBSi’s Research Team
  • Monthly issues of the iconic IBSi FinTech Journal
  • Exclusive invitation to a flagship IBSi on-ground event of your choice

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related Blogs

February 02, 2024

The role of API in banking: From personalised services to customer experiences

Read More

February 01, 2024

Supporting retail banking sustainability with credible claims

Read More

February 01, 2024

Unlocking the difference: How Data can allow banks to generate greater value

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q4 2023
Know More
Wealth Management & Private Banking Systems Report Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More