Banking Architecture: a framework for assessing if and where your FinTech concept might apply
by: Andra Sonea
During my career as an IT Architect (SAP, IBM, E&Y, now Lloyds Bank), I’ve observed numerous “innovation” initiatives in banking, most of which seem to be created and applied in a stand-alone manner. In comparison with the manufacturing industry, innovation there tends to be more organic, i.e. system engineers address a well described problem with a targeted solution. Often such problem-solving requires a highly innovative approach such as a new material or process; a redesigned shape or part; even a completely new product.
Feeling the seemingly incessant, potentially disruptive competition of FinTech entrants, nearly all financial institutions established formal innovation programs which tend to differ in approach and justification from other industries. Too often, such innovation groups are organized and function independently of the departments that they exist to serve.
I observe that both FinTech start-ups and financial institutions evaluate new ideas and technologies without precisely understanding what specific problems these may solve and where these would fit into the prevailing banking IT infrastructure. Our industry is attracted to the promise of Big Data Analytics; Watson as a learning machine; the latest payment methods or crypto currency type, yet we are hard-pressed to explain their methods of integration or degree of disruption.
My article will present a framework that I’ve developed that overviews the complex inner workings of banking architecture and enables a rapid evaluation of a FinTech idea to determine if this concept meshes with how the bank actually functions or is based upon vague assumptions of how a bank processes transactions and interacts with its customers.
Editors Notes: This entry has been submitted to the FINTECH Book, the world’s 1st globally crowd-sourced book on FINTECH. Readers that enjoyed this innitial abstract are invited to share and like it so that it may be featured in a longer version that will published in the FINTECH Book due to be released November 2015.