We asked four titans of the banking industry for their thoughts on the most prominent trends driving the banking space and why they're so important
Banking has changed considerably in the last decade and our expectations of what a bank is, and where we should find it, are drastically different. It’s indisputable that technology has been the driving force behind this change. With that in mind, we asked four senior industry executives to give us their view on the technology that is most influencing banking.
Composable banking
By Prema Varadhan, Chief Product and Technology Officer at Temenos
To survive and thrive banks need a platform for agility, scale and innovation. So what sort of platform should banks be using? The answer is a composable one – cloud-native, driven by data but in a way that is explainable and extensible.
Banking’s new business models are about spinning up new products and bringing them to market rapidly. Composability, where services are broken down into specific capabilities, enables this. It maximises freedom, speed and flexibility while connecting with an ecosystem of third-party offerings that further increases choice and boosts innovation.
Banks should look at some of the most successful B2B technology companies to understand the value of composability. These companies have taken a function and created an entire suite of software capabilities, accessed through a single platform – think Salesforce for CRM, or ServiceNow for workflow management.
Once a business is plugged into these platforms, they have everything they need, whether they choose to enable all the modules at once or gradually over time. And all without the burden of integrating, updating, localising and innovating, which falls to the platform provider to do.
For large banks, adoption of composable banking is likely to be incremental. They cannot simply give up on their incumbent technology, but must progressively renovate in order to run down their legacy investments. Challenger banks, Fintechs and non-banks will want to scale fast, and adopt specific capabilities that have been pre-composed for specific use-cases such as SME lending or digital mortgages.
By Alex Clere
February 08, 2023