Banks and FinTechs meet in Madrid to discuss the banking industry’s future
- Banks and FinTechs agreed to accelerate the adoption of common, industry standards to deploy new digital applications faster at BIAN’s Open Day in Madrid, Spain.
Madrid, March 21st, 2019- The Banking Industry Architecture Network (BIAN) launched its EMEA Chapter Meeting in Madrid with the theme “The Bank is Dead. Long live Banking,” bringing together representatives from leading banks and FinTechs to discuss the role of technology in shaping the financial services industry of tomorrow. Banks and FinTechs alike are under increasing pressure to provide their clients with new and innovative digital apps. The general consensus was that it’s essential to help support and accelerate the process of creating common standards and industry best practice.
This is one conclusion from yesterday’s open panel discussion during BIAN’s Open Day event, with leaders from banks (Santander and the US bank PNC), FinTechs (MyTriple A and 2gether) and technology solutions providers (Epiphany and Sngular).
The panelists agreed that technology is the key enabler of the banking industry’s digital transformation and requires a high level of investment. Conversely, most of that investment may not necessarily be reserved for IT modernization. The panel estimated that between 60-80% of many traditional banks’ information technology budgets are spent maintaining legacy infrastructure. Panelists also agreed that one of the key drivers to accelerating digital transformation is the migration from monolithic to microservice architecture and adoption of agile methodologies. Banking is not dead, they said, but if a bank is slow to digitally evolve, it will not survive. One piece of advice that was common amongst panelists was that banks must prioritize customer centricity and the speed of app deployment. Failing to do this only means they will be left behind as competitors increase their market share.
There was also a consensus amongst the bank and FinTech representatives that big data will have the greatest short term industry impact. When combined with machine learning, big data increases an organization’s predictive capabilities especially when assessing risk. Other technologies mentioned to be disrupting digital transformation were cloud computing and blockchain, which will result in new ways of generating revenue.
Panelists also highlighted that the ripple effects of regulation such as the EU’s Second Payment Services Directive (PSD2) and Open Banking initiatives, designed to stimulate increased competition, will also result in new business models and more innovative banking services. In practice, these changes will require easier API integration and deployment, which in the panelists’ opinion supports the need for common standards.
BIAN also shared in yesterday’s meeting the latest developments in their open API specifications and data standards, called API Exchange, which includes 89 definitions of API standards to facilitate and accelerate the adoption of new digital apps.
From March 19-21, the BIAN event in Madrid was hosted by Sngular, a technology solutions provider and active BIAN member. In the last year, Sngular has worked in the development of a set of semantic APIs, in collaboration with PNC Bank.
Sngular is a multinational company with more than 20 years of experience developing innovative and customized services and solutions for its clients, boosting their transformation and growth based on technology and digital ecosystems.
More than 600 professionals form Sngular’s global team working throughout the United States, Spain, Mexico, and Chile. The company operates in agile frameworks that allow the development of international projects with multidisciplinary teams distributed in different locations. Thus, Sngular has established trusting relationships with clients such as BBVA, Banco Santander, PNC, Mapfre, ING, Grupo Modelo, the World Bank, among others.
Sngular is an active member of BIAN (Banking Industry Architecture Network), an international association of financial institutions and technology partners that seeks to promote interoperability in the banking industry by accelerating open innovation and the digital transformation of banking and financial services.