Finance and technology have always gone hand in hand: we take for granted credit cards, ATMs, phone and internet banking and the revolution of electronic trading and exchanges. We’re increasingly comfortable with not only banks and building societies offering us financial products and services; now high street retailers offer credit cards and supermarkets offer us mortgages.
This pace has picked up, and a whole raft of potentially disruptive FinTech organisations at various stages of maturity are set to fundamentally change the ways that we manage our financial health.
At BAE Systems, we invest in ensuring we have the right partners and capabilities to collaborate with clients in Financial Services and to use disruptive technologies to future-proof their businesses and platforms.
We understand the multitude of revolutionary innovations within the world of FinTech is making it difficult to identify opportunities and threats accurately. Among the most exciting developments:
Many organisations are now looking to harness the power of Blockchain to do more than support a cryptocurrency. Blockchain has mostly been associated with Financial Services, whereas cryptography, privacy, autonomy and fault tolerance are all central characteristics of Blockchain that have immediate applications in cyber security. We continue to explore the multiple uses for Blockchain and the technical advantages it represents within the Digital Identity space.
Next generation cloud and Platform as a Service
New on demand cloud services are disrupting legacy Financial Services systems, whilst also powering the next generation of challenger banks. We continue to invest in new ways to provide on demand highly scalable services using a hybrid cloud model that mixes private and public cloud infrastructure, such as the first cloud-based compliance solution for financial crime, developed by BAE Systems. Our engineering heritage enables us to design and implement end-to-end solutions from micro-architecture (APIs) through to cloud services and digital solutions, helping clients through their technology transformation journey.
Open Banking and APIs
PSD2 (the revised Payment Services Directive) and Open Banking represent a seismic shift for the banking industry. We help our clients respond to emerging regulations, build agility into their core systems to support open APIs (Application Programming Interfaces) using scalable API framework solutions and use PSD2 and Open Banking to optimise user experiences.
Digital identity and biometrics
The proliferation of digital identities within the last five years has made digital identity convergence not just inevitable, but mandatory. Within Financial Services, verified digital identities are essential to enabling digital transactions built on trust. We provide comprehensive Identity and Access Management (IDAM) services to our clients and continue to invest in emerging IDAM solutions, including biometrics.
Legal obligations and contracts are ripe for digitalisation. The concept of Ricardian Contracts was introduced in the 1990s to address this need. Blockchain has gone further, adopting a hybrid version of Ricardian Contracts through the Smart Contracts capability to support a dynamic and real-time application of transactional arrangements. We continue to manage and support the development of such capabilities, while monitoring the development of digital signature laws, emerging regulations and their intersection with Blockchain evolution.
Things as customers
The Internet of Things (IOT) introduces new opportunities and avenues to improve customers’ business outcomes and drive efficiencies through the deployment of IOT data analytics techniques. We use data science to drive efficiency, productivity and innovation.
In light of the technology evolution and potential for machine learning and Artificial Intelligence (AI), financial institutions are starting to explore new ways to interface with customers. Automation through chatbots and roboadvisors can address complex customer requirements in a more cost efficient manner.
New capabilities and technologies such as those above can’t be adopted or applied in a formulaic fashion, and this is where our engineering and delivery experience adds real value. We help customers to explore new opportunities using our Prototype Pod service. We also help to transform engineering and delivery functions within organisations to become more agile and successfully support both experiments and increments of capability in ways that don’t harm user experience or customer satisfaction.