The banking sector is no stranger to digital transformation. The first UK retail internet banking service was introduced in 1997 and mobile banking is rapidly becoming the dominant channel through which customers interact with their banks.
The pace of change continues to increase with ring-fencing, open banking, GDPR, public/private cloud, distributed ledgers and AI technologies all pushing the boundaries further and faster than before.
Consumer patterns and expectations of services are rapidly evolving, with a significant increase in electronic payments and mobile banking driving the need for technology change to remain competitive.
Many banks are experimenting with different options to address these drivers. Some are choosing to build new digital banks from the ground up, whereas others are choosing to partner with FinTech specialist providers. Others in the industry are seeking to enable existing systems and futureproof their current estate.
Each strategy to innovate boasts pro’s and con’s. However these changes are placing significant demands on core banking operating models and in the case of open banking, are challenging the industry-wide operating model itself.
The change implications have been reiterated through Gartner's Hype Cycle for Open Banking 2017 report:
"Open banking changes the way value is created and delivered. Instead of banks creating and delivering most of the value, with open banking, they can derive value from business ecosystems".
With a range of capabilities spanning digital design, system engineering, data analytics and cyber security, BAE Systems is ideally placed to enable change and partner with the financial services sector to:
- Embrace innovation and deliver compelling yet secure customer experiences
- Build scaleable, responsive services using open source and cloud architectures and integrate these with existing legacy estates
- Better understand customer behaviour to attract and retain customers more effectively
- Safeguard mission-critical platforms and information from cyber threats
- Take a risk-based approach to information security, using innovative tools and techniques to drive efficiency.