Enabling digital banking by open API architecture

Published on
26 Jun 2015
Status
Initial Author
Author
Frank Schwab
Summary

High operating costs, little scope for innovation, too expensive IT projects, functional gaps, low agility, the immature banking IT industry and the lack of scalability are significant weaknesses of today’s IT landscapes of banks. Major causes are redundancies, inconsistencies and unintended dependencies across product lines and access channels as well as a variety of different technologies used. Future-proof IT landscapes of a banks follow nine requirements, e.g. a component-wise structure and decoupled technologies. Rigid interface standardisation and an open API architecture seems to be a suitable foundation for the construction of future-proof IT landscapes for digital banking.

Let’s imagine a completely new and modern banking system, oriented towards modern consumers and how they like to live and work. It bridges traditional banking (account, payment, deposits, loan) and new banking (crowd, peer to peer and crypto) in an unique way.

What’s amazing is that, while fidorOS performs the functions of a core banking system, it is actually built so that it runs on top of an existing legacy core banking system — a hugely difficult task — that was accomplished several times in different countries.

This effectively gives any user (a bank, a retailer or an eCommerce company) the power of having built a brand-new system (you can move quickly, and adapt to emerging consumer trends), without the burden of maintaining legacy systems in multiple countries.

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