Download as PDF, PPTX
![Source: Philipp Hauer’s Blog
Object-oriented database models
{
_id: „4d0ad975bb30“
fName: “Frank“
lName: “Schwab“
bankAccounts: [
{accNo:395382},
{accNo:824432}
],
addresses: [
{city:“Berlin“},
{city:“Heidelberg“}
]
}
frank: Customer
fName=Frank
lName=Schwab
:BankAccount
accNo=395382
berlin: Address
city=Berlin
:BankAccount
accNo=824432
leipzeig: Address
city=Leipzig
standardization
Re-use
flexibility](https://image.slidesharecdn.com/evolutionofparadigmsinbankingitfrankschwabfinal-komprimiert-190529063613/85/Evolution-of-paradigms-in-Banking-IT-68-320.jpg)
![sdfAC_DEFUN([AX_CXX_COMPILE_STDCXX], [dnl
m4_if([$1], [11], [],
[$1], [14], [],
[$1], [17], [m4_fatal([support for C++17 not yet implemented in
AX_CXX_COMPILE_STDCXX])],
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AX_CXX_COMPILE_STDCXX])])dnl
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m4_if([$3], [], [ax_cxx_compile_cxx$1_required=true],
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[$3], [optional], [ax_cxx_compile_cxx$1_required=false],
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AX_CXX_COMPILE_STDCXX])])
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[$4], [nodefault], [ax_cxx_compile_cxx$1_try_default=false],
[m4_fatal([invalid fourth argument `$4' to
AX_CXX_COMPILE_STDCXX])])
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![Evolution of paradigms in Banking IT
www.FrankSchwabSpeaks.com
SoftwareIP
Self-developed
public class Main {
public static void
main(String[] args) {
System.out.println("H
ello, World!");
}
}
Level 1
Vendor packaged
Level 2
Open Source
Level 3
Open Service
24
Level 4
flexibility
standardization
openness
speed](https://image.slidesharecdn.com/evolutionofparadigmsinbankingitfrankschwabfinal-komprimiert-190529063613/85/Evolution-of-paradigms-in-Banking-IT-93-320.jpg)
![Evolution of paradigms in Banking IT
www.FrankSchwabSpeaks.com
Services
Application Service API
Interface
Function Productivity User
Account
Amount
123456
399.99
Machine
AI
^
IP
Self-developed Vendor packaged Open Source Open Service
public class Main {
public static void
main(String[] args) {
System.out.println("H
ello, World!");
}
}
24](https://image.slidesharecdn.com/evolutionofparadigmsinbankingitfrankschwabfinal-komprimiert-190529063613/85/Evolution-of-paradigms-in-Banking-IT-117-320.jpg)
Uploaded byFrank Schwab
Evolution of paradigms in Banking IT
The 12th Richmond Financial Industry Forum, held from May 16-18, 2019, examined the evolution of banking technology, emphasizing the shift towards speed, usability, and flexibility through standardization and automation. The presentation highlighted the importance of APIs in integrating services and reducing operational costs while showcasing the future of banking where processes become increasingly automated and invisible to customers. Additionally, it discussed the changing landscape of financial services due to fintech innovations and the challenges faced by traditional banks in adapting to new technologies.
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Similar to Evolution of paradigms in Banking IT
Evolution of paradigms in Banking IT
- 1. 12th RICHMOND FINANCIAL INDUSTRY FORUM Victoria-JungfrauGrand Hotel, Interlaken 16 – 18 May 2019 12th RICHMOND FINANCIAL INDUSTRY FORUM
- 2. Evolution of Paradigmsin Banking IT Frank Schwab Co Founder, FinTech Forum 12th RICHMOND FINANCIAL INDUSTRY FORUM
- 3.
- 4.
- 5. The way bankingservices are delivered What will be different? The way banking services are produced
- 6. Effective Banking ITevolution is driven by speed usability flexibility costs By means of standardizationautomation www.FrankSchwabSpeaks.com opennessre-use
- 7. IBM 803 proofmachine July 1949 Checks proof machine sort proof sum Source: IBM
- 8. abc abc sort proof sum First cashmachine, Barclays Bank, Enfield Town branch, North London, United Kingdom, 27 June 1967
- 9. Sources: Google Patents,Wikipedia Bankograph, 1963 Luther George Simjian
- 10.
- 11.
- 12. Workflow example NOS öffnen► Kunde suchen NOS-Übersicht ► Partner / Adressen ► Anzeigen / Ändern ► Bestätigung ► Änderung der Telefonnummer? ► bestätigen / Ändern ► Ausdruck bestätigen ►zurück zur Übersicht NOS-Übersicht ► Produkt / Ändern ► Einlagen / Termingeldprolongation ► Daten ändern ► bestätigen ► zurück zur Übersicht Einmeldung in KIM ► Starten von KIM ► Anmeldung ► Kunden suchen ► neuen Eintrag wählen ► Daten einpflegen ► Abschluss anlegen ► Daten eingeben ► bestätigen ► zurück zur Übersicht ¨ Customer visits a bank branch ¨ Customer informs about move ¨ Bank employee is informed that a savings plan is due 37 Clicks
- 13.
- 14. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com Interface Function Account Amount 123456 399.99 Productivity speed automation
- 15. Text based Static Lack ofvisual experience Functional
- 16. Can it bedone differently?
- 17.
- 18.
- 19.
- 21. 2002 2015 ING*DiBa Germanyscaled Customers 1.8 Million 8.5 Million Profits -4 Million Euro 1,115 Million Euro Employees 914 3,749 Source: Annual reports ING*DiBa
- 23.
- 25. He needs apowerful tool to manage his financial topics. NAME Dave AGE 27 LOCATION Big city INTERNET USAGE • Heavy • Many communities • Social media • Blog JOB SEO specialist INTERESTS • Technology • Trends • Gadgets LIVING Small apartment STATUS Single Product fit: Saving for a project Peer-to-peer loan Emergency loan Budget manager Card Peer-to-peer transfer This guy is very familiar with the digital world: networker, geek, gamer, coder, community user Source: Fidor.com GEEK
- 26.
- 27.
- 28. Feb 2019 75 millionusers 3 million drivers 65 countries 600 cities 15 Million rides daily
- 31.
- 32.
- 33.
- 34. In the future,paying will no longer be something we do Paying will happen in the background simply invisible
- 35. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com Interface Function Account Amount 123456 399.99 Productivity User Machine Level 1 Level 2 Level 3 Level 4 speed automation usability standardization
- 36.
- 37.
- 38.
- 39. Example: Lending ITsystem landscape Security Product Pricing Decision Contract Account Customer Contact Recovery Transaction Output Archiving Booking Position Identity Retail Loan Internet CRM Product Pricing Decision Contract Collaterals Account Client Recovery Transaction Output Archiving Booking Position Identity Corporate Loan Branch CRM Security Product Pricing Decision Contract Account Client Contact Recovery Transaction Output Archiving Booking Position Identity Corporate Loan Internet CRM Security Product Pricing Decision Contract Account Customer Dealer Recovery Transaction Output Archiving Booking Position Identity Consumer Loan Extranet CRM Product Pricing Decision Contract Collaterals Account Contact Recovery Transaction Output Archiving Booking Position Identity Customer Retail Mortgage Branch Product Pricing Decision Contract Collaterals Account Customer Recovery Transaction Output Archiving Booking Position Identity Retail Loan Branch CRM And data saved redundantly Products are implemented redundantly and inconsistently across product lines and channels
- 40. Security Product Pricing Decision Contract Account Customer Contact Recovery Transaction Output Archiving Booking Position Identity Retail Loan Internet CRM Product Pricing Decision Contract Collaterals Account Client Recovery Transaction Output Archiving Booking Position Identity Corporate Loan Branch CRM Security Product Pricing Decision Contract Account Client Contact Recovery Transaction Output Archiving Booking Position Identity Corporate LoanInternet CRM Security Product Pricing Decision Contract Account Customer Dealer Recovery Transaction Output Archiving Booking Position Identity Consumer Loan Extranet CRM Product Pricing Decision Contract Collaterals Account Contact Recovery Transaction Output Archiving Booking Position Identity Customer Retail Mortgage Branch Product Pricing Decision Contract Collaterals Account Customer Recovery Transaction Output Archiving Booking Position Identity Retail Loan Branch CRM High operating costs Slow implementations Difficult to innovate
- 42.
- 43. Implementation time reduced by50% Process costs reduced by 80% speed costs standardization re-use
- 44.
- 45. API = ApplicationProgramming Interface A browser is for a person the same as an API for a computer { “headline": “API“, “description“: “In computer programming, an application programming interface (API) is a set of routines, protocols, and tools for building software applications. An API expresses …“ } www.FrankSchwabSpeaks.comSource: Wikipedia.com
- 46. Source: www.programmableweb.com In 2017,most banking APIs were released Category # APIs Data 256 Financial 249 Analytics 184 Payments 180 Messaging 125 Banking 117 Mobile 112 Cloud 109 eCommerce 104 Security 99 www.FrankSchwabSpeaks.com
- 47. Fidor Bank setsa global standard for API documentation and API community in the financial service industry www.FrankSchwabSpeaks.com
- 49. Because of itsAPI infrastructure Fidor Bank could already integrate more than 20 partner into the customer account Crowd finance – SMAVA Crypto currencies - Kraken Precious metals - Goldmoney Crowd finance – kapilendo
- 50.
- 51. APIs enable Re-use ofwhole business models
- 52.
- 53. www.FrankSchwabSpeaks.com Integration costs reducedby 95% -95% Traditional IT of banks API Banking IT
- 54. PSD 2 Access toaccount
- 55. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com Services Application Level 1 Service Level 2 API Level 3 ?re-usestandardization
- 56.
- 57. Amelia, Source: IPSoft ITService Desk Agent SEB Bank 3 weeks 700 employees 4,000 inquiries
- 58.
- 59.
- 60. 40 B2C /B2B Robo Advisors in Germany Source: Techfluence, Nov 2017
- 62.
- 63. Minimum investment volume Robo 2,500 TraditionalBank 50,000 1.5 0.75 Annual costs Robo Traditional Bank in EUR in % Factor 20 Factor 2
- 64. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com Services Application Service API AI ^ Level 1 Level 2 Level 3 Level 4 speed standardizationcosts re-use automation
- 65.
- 66. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com Data Flat Level 1 Rational Level 2
- 67.
- 68. Source: Philipp Hauer’sBlog Object-oriented database models { _id: „4d0ad975bb30“ fName: “Frank“ lName: “Schwab“ bankAccounts: [ {accNo:395382}, {accNo:824432} ], addresses: [ {city:“Berlin“}, {city:“Heidelberg“} ] } frank: Customer fName=Frank lName=Schwab :BankAccount accNo=395382 berlin: Address city=Berlin :BankAccount accNo=824432 leipzeig: Address city=Leipzig standardization Re-use flexibility
- 69. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com Data Flat Rational Level 1 Level 2 Object Level 3 Blockchain Level 4 usability re-use openness standardization flexibilty
- 70. Blockchain Public ledger Public keyPrivatekey Transaction signed with private key www.FrankSchwabSpeaks.com
- 71. De-centralized Each participant hasa copy of the public ledger www.FrankSchwabSpeaks.com
- 72. „Money is central tous. Money and all forms of transferring money are our core business.“ Burkhard Balz Member of the Executive Board of the Deutsche Bundesbank Source: CFS-Conference, 8th May 2019
- 73.
- 75.
- 76. Trust Trust TrustTrust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust Trust
- 77. Smart Contracts Public ledger Transactionblock with condition condition Example Stocks: dividend payment www.FrankSchwabSpeaks.com
- 78.
- 79. > 2,000 cryptocurrencies > 15,000 markets
- 83. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com Data Flat Rational Level 1 Level 2 Object Level 3 Blockchain Level 4 usability re-use openness standardization flexibilty
- 84.
- 85. 000100 IDENTIFICATION DIVISION. 000200PROGRAM-ID. HELLOWORLD. 000300 000400* 000500 ENVIRONMENT DIVISION. 000600 CONFIGURATION SECTION. 000700 SOURCE-COMPUTER. RM-COBOL. 000800 OBJECT-COMPUTER. RM-COBOL. 000900 001000 DATA DIVISION. 001100 FILE SECTION. 001200 100000 PROCEDURE DIVISION. 100100 100200 MAIN-LOGIC SECTION. 100300 BEGIN. 100400 DISPLAY " " LINE 1 POSITION 1 ERASE EOS. 100500 DISPLAY "Hello world!" LINE 15 POSITION 10. 100600 STOP RUN. 100700 MAIN-LOGIC-EXIT. 100800 EXIT. "Hello world!" Only 1% of active code Skilled people retired Takes up to three months to understand code Legacy
- 87.
- 88. sdfAC_DEFUN([AX_CXX_COMPILE_STDCXX], [dnl m4_if([$1], [11],[], [$1], [14], [], [$1], [17], [m4_fatal([support for C++17 not yet implemented in AX_CXX_COMPILE_STDCXX])], [m4_fatal([invalid first argument `$1' to AX_CXX_COMPILE_STDCXX])])dnl m4_if([$2], [], [], [$2], [ext], [], [$2], [noext], [], [m4_fatal([invalid second argument `$2' to AX_CXX_COMPILE_STDCXX])])dnl m4_if([$3], [], [ax_cxx_compile_cxx$1_required=true], [$3], [mandatory], [ax_cxx_compile_cxx$1_required=true], [$3], [optional], [ax_cxx_compile_cxx$1_required=false], [m4_fatal([invalid third argument `$3' to AX_CXX_COMPILE_STDCXX])]) m4_if([$4], [], [ax_cxx_compile_cxx$1_try_default=true], [$4], [default], [ax_cxx_compile_cxx$1_try_default=true], [$4], [nodefault], [ax_cxx_compile_cxx$1_try_default=false], [m4_fatal([invalid fourth argument `$4' to AX_CXX_COMPILE_STDCXX])]) AC_LANG_PUSH([C++])dnl ac_success=no m4_if([$4], [nodefault], [], [dnl AC_CACHE_CHECK(whether $CXX supports C++$1 features by default, ax_cv_cxx_compile_cxx$1, [AC_COMPILE_IFELSE([AC_LANG_SOURCE([_AX_CXX_COMPILE_STDCXX_te stbody_$1])], [ax_cv_cxx_compile_cxx$1=yes], [ax_cv_cxx_compile_cxx$1=no])]) if test x$ax_cv_cxx_compile_cxx$1 = xyes; then ac_success=yes fi]) 1%
- 89.
- 91.
- 92.
- 93. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com SoftwareIP Self-developed public class Main { public static void main(String[] args) { System.out.println("H ello, World!"); } } Level 1 Vendor packaged Level 2 Open Source Level 3 Open Service 24 Level 4 flexibility standardization openness speed
- 94. Only develop yourown software if you can differentiate yourself in the market and achieve great customer benefit. www.FrankSchwabSpeaks.com
- 95.
- 96. IBM Mainframe Sun Server Intelblade Thin clients Fat clients AIX Server Server FarmAny technology of each and every decade
- 97. Reduce data centrecosts by 50%
- 98. Cost efficient scalableinfrastructures Watt per MIPS 1975 1985 1995 2005 2015 101 10-1 10-3 10-5 Source: OurWorldinData.org
- 99. Possible IT infrastructuresavings -80% Traditional Bank IT Cloud Banking Services
- 101.
- 103.
- 104. Do not runsystems you did not build Gregor Hohpe
- 105.
- 106. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com Infrastructure Variety Level 1 Industrialised Level 2 Cloud Level 3 Edge Level 4 speed automationcosts openness standardization
- 107.
- 108. Security Product Pricing Decision Contract Account Customer Contact Recovery Transaction Output Archiving Booking Position Identity Retail Loan Internet CRM Product Pricing Decision Contract Collaterals Account Client Recovery Transaction Output Archiving Booking Position Identity Corporate Loan Branch CRM Security Product Pricing Decision Contract Account Client Contact Recovery Transaction Output Archiving Booking Position Identity Corporate LoanInternet CRM Security Product Pricing Decision Contract Account Customer Dealer Recovery Transaction Output Archiving Booking Position Identity Consumer Loan Extranet CRM Product Pricing Decision Contract Collaterals Account Contact Recovery Transaction Output Archiving Booking Position Identity Customer Retail Mortgage Branch Product Pricing Decision Contract Collaterals Account Customer Recovery Transaction Output Archiving Booking Position Identity Retail Loan Branch CRM High operating costs Slow implementations Difficult to innovate
- 109. Traditional banks areorganized in hierarchical silos www.FrankSchwabSpeaks.com ITProduct Operations
- 110. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com Organisation Hierarchical Level 1 Matrix Level 2 flexibility
- 111.
- 112.
- 113.
- 114.
- 115.
- 116. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com Organisation Hierarchical Matrix Level 1 Level 2 Agile Level 3 Self-organized Level 4 flexibility automationspeed
- 117. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com Services Application Service API Interface Function Productivity User Account Amount 123456 399.99 Machine AI ^ IP Self-developed Vendor packaged Open Source Open Service public class Main { public static void main(String[] args) { System.out.println("H ello, World!"); } } 24
- 118. Evolution of paradigmsin Banking IT www.FrankSchwabSpeaks.com Organisation Hierarchical Matrix Agile Self-organized Infrastructure Variety Industrialised Cloud Edge Data Flat Rational Object Blockchain
- 119. New banking builtwith new technologies Crypto Cloud API AIMobileBlockchain Crowd P2P ^ Open Source TokenWallet ICORobot www.FrankSchwabSpeaks.com
- 120.
- 121. Since 2010 >100Billion USD invested Source: CB Insights 2010 1.9 2011 2.5 2012 3.2 2013 4.8 2014 13.3 2015 21.2 2016 23.3 2017 27.4FinTech investments in Billion USD
- 122. FinTech has leftthe niche Source: CB Insights 2013 N26 2.5 2011 TransferWise 2 2013 robinhood 4 2006 eToro 9 2012 coinbase 13.3 # Customers in millions
- 124. R I P Bankingand Banking IT as we know it
- 125.
- 126.
- 127. Effective Banking ITevolution is driven by speed usability flexibility costs By means of standardizationautomation www.FrankSchwabSpeaks.com opennessre-use
- 128. Level 1 Level2 Level 3 Level 4 Interface Function Productivity User Machine Services Application Service API AI Data Flat Rational Object Blockchain Infrastructure Variety Industrialized Cloud Edge Software IP Self-developed Vendor Package Open Source Open Services Organization Hierarchical Matrix Agile Self-organized Evolution of paradigms in Banking IT www.FrankSchwabSpeaks.com
- 129. 2030: Banking disrupted New Traditional BankingService TechnologyNewLegacy Niche Financial infrastructure provider Er Successful disruptors
- 130. Success = 1% talent+ 99 % hard work
- 131.