Interface: From functional interfaces to machine communication
Services: From application silos to machine learning and AI
IP: From self developed to open source to open services
Data: From flat files to blockchain
Infrastructure: From high variety infrastructures to edge computing
Organisation: From hierarchical IT organizations to distributed agil self organized communities
The future is already here, just distributed unevenly - demonstrated by many real life observations in Banking IT
Richmond Financial Industry Forum
5. The way banking services are delivered
What will be different?
The way banking services are produced
6. Effective Banking IT evolution is driven by
speed
usability
flexibility
costs
By means of
standardizationautomation
www.FrankSchwabSpeaks.com
opennessre-use
7. IBM 803 proof machine
July 1949
Checks proof machine
sort
proof
sum
Source: IBM
12. Workflow example
NOS öffnen ► Kunde suchen
NOS-Übersicht ► Partner / Adressen ► Anzeigen / Ändern ► Bestätigung ►
Änderung der Telefonnummer? ► bestätigen / Ändern ► Ausdruck bestätigen ►zurück zur
Übersicht
NOS-Übersicht ► Produkt / Ändern ► Einlagen / Termingeldprolongation ►
Daten ändern ► bestätigen ► zurück zur Übersicht
Einmeldung in KIM ► Starten von KIM ► Anmeldung ► Kunden suchen ► neuen
Eintrag wählen ► Daten einpflegen ► Abschluss anlegen ► Daten eingeben ►
bestätigen ► zurück zur Übersicht
¨ Customer visits a bank branch
¨ Customer informs about move
¨ Bank employee is informed that a savings
plan is due
37 Clicks
21. 2002 2015
ING*DiBa Germany scaled
Customers
1.8 Million
8.5 Million
Profits
-4 Million Euro
1,115 Million Euro
Employees
914
3,749
Source: Annual reports ING*DiBa
25. He needs a powerful tool to manage his financial topics.
NAME Dave
AGE 27
LOCATION Big city
INTERNET
USAGE
• Heavy
• Many communities
• Social media
• Blog
JOB SEO specialist
INTERESTS
• Technology
• Trends
• Gadgets
LIVING Small apartment
STATUS Single
Product fit:
Saving for a project
Peer-to-peer loan
Emergency loan
Budget manager
Card
Peer-to-peer transfer
This guy is very familiar with the
digital world: networker, geek,
gamer, coder, community user
Source: Fidor.com
GEEK
45. API = Application Programming Interface
A browser is for a person the same as an API for a computer
{
“headline": “API“,
“description“: “In computer
programming, an application
programming interface (API)
is a set of routines,
protocols, and tools for
building software
applications. An API
expresses …“
}
www.FrankSchwabSpeaks.comSource: Wikipedia.com
46. Source: www.programmableweb.com
In 2017, most
banking APIs
were released
Category # APIs
Data 256
Financial 249
Analytics 184
Payments 180
Messaging 125
Banking 117
Mobile 112
Cloud 109
eCommerce 104
Security 99
www.FrankSchwabSpeaks.com
47. Fidor Bank sets a global standard for API documentation
and API community in the financial service industry
www.FrankSchwabSpeaks.com
48.
49. Because of its API infrastructure Fidor Bank could already integrate
more than 20 partner into the customer account
Crowd finance – SMAVA
Crypto currencies - Kraken
Precious metals - Goldmoney
Crowd finance – kapilendo
64. Evolution of paradigms in Banking IT
www.FrankSchwabSpeaks.com
Services
Application Service API AI
^
Level 1 Level 2 Level 3 Level 4
speed standardizationcosts
re-use
automation
72. „Money is central
to us. Money and
all forms of
transferring
money are our
core business.“
Burkhard Balz
Member of the Executive Board of
the Deutsche Bundesbank
Source: CFS-Conference, 8th May 2019
93. Evolution of paradigms in Banking IT
www.FrankSchwabSpeaks.com
SoftwareIP
Self-developed
public class Main {
public static void
main(String[] args) {
System.out.println("H
ello, World!");
}
}
Level 1
Vendor packaged
Level 2
Open Source
Level 3
Open Service
24
Level 4
flexibility
standardization
openness
speed
94. Only develop your own
software if you can
differentiate yourself in the
market and achieve great
customer benefit.
www.FrankSchwabSpeaks.com
116. Evolution of paradigms in Banking IT
www.FrankSchwabSpeaks.com
Organisation
Hierarchical Matrix
Level 1 Level 2
Agile
Level 3
Self-organized
Level 4
flexibility automationspeed
117. Evolution of paradigms in Banking IT
www.FrankSchwabSpeaks.com
Services
Application Service API
Interface
Function Productivity User
Account
Amount
123456
399.99
Machine
AI
^
IP
Self-developed Vendor packaged Open Source Open Service
public class Main {
public static void
main(String[] args) {
System.out.println("H
ello, World!");
}
}
24
118. Evolution of paradigms in Banking IT
www.FrankSchwabSpeaks.com
Organisation
Hierarchical Matrix Agile Self-organized
Infrastructure
Variety Industrialised Cloud Edge
Data
Flat Rational Object Blockchain
119. New banking built with new technologies
Crypto Cloud API AIMobileBlockchain
Crowd P2P
^
Open Source
TokenWallet ICORobot
www.FrankSchwabSpeaks.com
127. Effective Banking IT evolution is driven by
speed
usability
flexibility
costs
By means of
standardizationautomation
www.FrankSchwabSpeaks.com
opennessre-use
128. Level 1 Level 2 Level 3 Level 4
Interface Function Productivity User Machine
Services Application Service API AI
Data Flat Rational Object Blockchain
Infrastructure Variety Industrialized Cloud Edge
Software IP Self-developed Vendor Package Open Source Open Services
Organization Hierarchical Matrix Agile Self-organized
Evolution of paradigms in Banking IT
www.FrankSchwabSpeaks.com