The banking sector is no stranger to Digital Transformation. Retail customers in the UK have enjoyed internet banking since 1997, and mobile banking is rapidly becoming the dominant channel for personal banking. This change continues – and is increasing. Ring-fencing, open banking, GDPR, public/private cloud, distributed ledgers and AI technologies all push the boundaries further and faster than before.
Consumer behaviour and expectations are evolving rapidly; a significant increase in electronic payments and mobile banking demand technological change.
Banks are trying several different strategies to address these changing technological and customer needs. Some choose to build new digital banks from the ground up. Others have decided to work in partnership with FinTech specialist providers. Another group works to update existing systems and future-proof their current estate.
Each strategy to innovate has drawbacks and benefits, but all of them place significant demands on core banking operating models. In the case of open banking this pressure challenges the industry-wide operating model itself.
The change implications have been reiterated through Gartner’s July 2017 Hype Cycle for Open Banking 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 scalable, 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.