27.05.2015 Views

EVOLUTION OF BANKING

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

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

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!