The Banking Industry Architecture Network (Bian) has announced its standardised global IT architecture for banks after completing a project designed to make the replacement of core banking systems simpler.
The Bian Service Landscape 4.0 identifies the standard capabilities of banks and interdependencies of systems. Although no UK banks are members of the group, the development could provide lessons to UK banks hamstrung by complex and inflexible legacy systems.
Bian is a not-for-profit organisation that promotes common banking architecture, with a membership split 50:50 between global banks and IT suppliers.
It includes European organisations Deutsche Bank, UBS, ABN Amro and Société Générale, as well as banks in regions including North America and Australia. IT suppliers Microsoft, Infosys, Tata Consultancy Services and SAP are also members.
Banks have large numbers of systems performing business processes which use the same information. This has created complexity and made it difficult to replace one system without having an affect on another.
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- The Banking Industry Architecture Network called on the industry to move beyond technical discussions and consider which of their core systems banks can move to cloud platforms and share
- The Banking Industry Architecture Network has called for the adoption of a service-oriented architecture framework across the banking and industry and its software and services suppliers to support the move to off-the-shelf software in banks
- Leading banks are pressing IT suppliers to take-up open technology standards, in a drive to reduce the cost and complexity of banking technology
Bian’s standard has identified almost 2,000 examples of business systems sharing information.
The standard will support banks in using application programming interfaces so different pieces of software can interact. It moves away from an approach that has seen core banking IT built in silos.
“Bian members have worked tirelessly to develop this global banking IT standard that will support banks to overcome legacy IT issues and drastically cut the cost of technology integration. To have finalised the model ready for implementation into banks around the globe is a momentous occasion," said Bian executive director Hans Tesselaar.
"By implementing this on a worldwide scale, banks will be able to develop and on-board innovative technology offerings without battling through ageing or tangled enterprise architecture, and at lower integration costs.”
CIO at US bank PNC, Steve Van Wyk, said in the future the bank will need a core banking platform with agility, speed to market and speed to adapt.
“The only way for that to happen is if we collaborate on an industry standard such as Bian,” he said.