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Open Banking: Unbundling Services And Extending Into Other Ecosystems
By Gavin Michael, Global Consumer Technology Head, Citi
In recent years, several banks have embarked on strategies to partner with their internal businesses and create roadmaps which decompose their monolithic, heritage systems. By driving this approach, they are creating microservices which are aligned closely with the business product model offered to the customer. This enables both IT and the business to narrow their focus to a slice of the legacy monolith application, carve it out, and then recreate it as a new set of stand-alone offerings. These offerings are then enabled through an internal developer portal to allow other internal business and IT teams to take advantage of that function. As these groups scale this approach, the catalog of services grows quickly and is available for both discovery and execution.
Innovation and creativity will continue to change the landscape in which customers interact with banks
A broader and more exciting possibility soon emerges as well. Consider that today’s service ecosystems (banking, entertainment, etc.) no longer sit in isolated silos. In stark contrast, companies are providing an open and transparent communication platform (a.k.a. external developer portal) so those around them can utilize their capabilities. This has the ability to exponentially impact business value. Utilizing best in class capabilities from both internal and external providers, businesses can plug in what they need and where they need it.
Innovation and creativity will continue to change the landscape in which customers interact with banks. By unbundling large applications and assembling an open set of banking services built upon core competencies, banks allow themselves to be present everywhere their customers work, live, and play digitally. From moving money through social networks such as WeChat in China, providing value-added services such as paying with reward points, or enabling third-party-developed white-label capabilities like the recently launched Qantas Platinum credit card, customer touchpoints are no longer bound to a bank’s branch, website, or mobile app.
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