EVOLUTION OF BANKING
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AP Interfaces TO SUPPORT<br />
BANKS’ SERVICE PROVISION<br />
AP Interfaces – Enabling legacy systems in new architecture<br />
models<br />
As banks rethink their technology models, one of the many options would be<br />
to build out a service orientated architecture model which redefines current<br />
functionality as separate, reusable services or Application Programme<br />
Interfaces (AP Interfaces). An AP Interface is a programme that can access<br />
systems, data or technology through a simple interface. AP Interfaces allow<br />
banks to access a range of functions/services including future third party<br />
services which may not yet exist.<br />
Historically, banks have hundreds of independent back end systems, all built for<br />
specific purposes. By building an AP Interface to these services, you unlock the<br />
functionality within a service-oriented architecture so that the services can be<br />
used to benefit customers and banking operations. This will be key in delivering<br />
‘anytime, anywhere’ banking and making multi-channel banking possible when<br />
married with business process and rules engines.<br />
This approach also supports the more evolutionary nature of ‘agile’, where<br />
delivery is quick and then adapts. You build incrementally upon functionality<br />
which is working and make it better inch by inch, rather than trying to deliver<br />
revolution via waterfall delivery methods – which in banking takes years, costs<br />
double the budgeted spend and delivers half the benefits, because the scope<br />
has been changed so much to get it delivered at all, all the added value has<br />
been lost.<br />
External providers have a big role to play in this area going forward, by providing<br />
new services to banks which fit a standard model of required functionality. For<br />
example, the recent FATCA (Foreign Account Tax Compliance Act) regulation<br />
has required all banks to make changes to their systems to capture data<br />
on customers who are US citizens, residents etc. Banks and other financial<br />
services firms have spent $M’s each on developing bespoke systems, whereas<br />
off the shelf solutions may instantly meet 60-80% of requirements and deploy<br />
for significantly less cost, far quicker. Speed matters more than ever before.<br />
The Evolution of Banking and Financial Services | 33
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