Coreless Banking
This initiative continues to be spearheaded by a leading association of banks and solution providers. It provide a platform for banks to collaborate with leading software vendors on developing a future-proof, and compatible banking microservices infrastructure based on BIAN architectures. This will solve the perpetual challenges presented by legacy core infrastructure.
During this session we will demonstrate how standardization will support your organization by its Core Banking renewal. Your Roadmap to Plug and Play Banking. By Banks for Banks. A panel, consist out of Steve Van Wyk, Chairman of the BIAN Board and Global Chief Information Officer at HSBC, Shanker Ramamurthy BIAN Board member and, Global Managing Partner Banking and President IBM Industry Academy, Chad Ballard, BIAN Board member and Managing Director, Head of Core Banking Technology at JPMorgan Chase & Co. and Gareth Richardson, Chief Operating Officer, Thought Machine will discuss the different options and future developments of BIAN’s Coreless initiative.
We have included a summary of how each concept has evolved over the last several years.
CORELESS BANKING 1.0
The initial Coreless Banking concept aimed to promote a more efficient and effective approach to modernising banking software. The collaboration between initiative partners will make it easier for banks to source and adopt new business services. This will solve the perpetual challenges presented by legacy core infrastructure, and allow for faster, more cost-effective development of services that are more relevant for today’s digital-first customers.
The initial focus of the pilot is to develop API-based micro-services covering consumer payments, customer offers and consumer loans. BIAN’s Coreless Banking platform will permit the following functions:
- Complete plug and play functionality, to ensure no impact to user experience
- Fully deployable to the cloud, so users can take advantage of modern software development techniques
- Bank consumable API interface to orchestrate (where necessary) BIAN APIs and reduce network traffic
- Cross domain orchestration to also reduce network traffic
CORELESS BANKING 2.0
The second concept focused on allowing financial institutions to overcome common issues when undertaking digital transformation projects, while taking advantage of faster and more cost-effective development of services relevant to today’s digital-first customers. The platform aimed to empower banks to select the software vendors needed to obtain the best-of-breed for each application area without worrying about interoperability. In addition to this, it enables the translation of each proprietary message model into BIAN’s standard message model, ensuring that each solution can connect and exchange data seamlessly.
CORELESS BANKING 3.0
Coreless Banking 3.0 built upon BIAN’s second iteration of the coreless banking model developed in 2021. The updated concept placed the customer at the heart of banks’ operations by providing the ability to obtain customer consent to retrieve their banking data held with another bank. This version provided banks with a full view of a customer’s financial position and services held elsewhere, allowing banks to offer tailored products which better suit customers needs.
CORELESS BANKING 4.0
The development of Coreless Banking 4.0 focused on helping banks identify customers who are likely to leave or consider moving money outside of the bank and identify personalized offers using AI and machine learning to encourage them to stay.
The new concept continues to demonstrate that the delivery of these capabilities through standard service definitions can be done without compromising a financial institution’s need to protect its intellectual property. This is because standard service definitions are building blocks that can be assembled and implemented in unique ways, dependent on the needs of each bank.