In the late nineties I was exploring the impact of the Internet with my financial services clients. At the board level there was curiosity, at the C suite they were considering just what CRM really meant in terms of whole of business transformation however, the line management teams were stuck in large manufacturer product push mentality supplying what they felt remained a largely homogeneous mass market, with a mass produced product.

As we explored how the Internet would support the emerging concepts of an interconnected financial services ecosystem, with customers pulling the product of preference, the likelihood of a collaborative business model of inter-connected intermediary specialist providers participating at multiple points of the value chain began to evolve. Although we had witnessed substantial efficiency in manufacturing from these transformations, this future still seemed some time off for the Financial Services Industry.  As we began to understand the customer empowering characteristics of the Internet, light bulbs started to go on.  An empowered customer able to select and configure products of preference from suppliers of choice began to emerge, it became clear  that the future was unlikely to resemble the past . 

Today the reality of co-operative participation with a multitude of chosen partners is a defining characteristic of successful Financial Services players, with outsourcing and co-sourcing increasingly common. These strategies continue to edge closer to the heart of non-differentiating elements of the business, both at the system of record and system of engagement layers. For the technologists, the emergence of the API economy at the system of engagement provides an unprecedented opportunity to architect the service oriented architecture necessary to support the consumption of unique value adding services for client facing digital solutions, particularly supporting mobile channels. 

As the reality of vast  and rapid, real time interconnection now takes shape, the conversation, and action required has progressed to investment in understanding and implementing an API management strategy that can support cloud native application deployment. 

Financial Services organisations must now establish a secure external API technology platform to support their banking as a service business strategy and hence provide the safe interconnections of preferred and aligned ecosystem partners. 

As I discussed recently with AB&F, regulations are tightening to allow deeper, more prevalent access to banking customer data, with a hot debate raging across the industry around who owns the data. The result of which can support only one outcome – at the end of the day – the customer owns the data, and can elect to provision their data to whoever can provide the highest value added service. 

The message is therefore clear, gear up now for the API economy and get ready to operate like a startup, with all the associated nimbleness and agility.  Like others, Capgemini have designed and configured  what we call the Immediate Environment to assist our clients at this critical layer.  

If you’re interested in how this conversation is playing out in the cards and payments space, please do review the article published in AB&F commenting on the emergence of powerful key regulatory initiatives (KRII’s) designed to accelerate standardistion and hence drive innovation in the Payments industry, where substantial revenue streams are being disrupted. Watch my future blogs for further detail on the KRII’s as we head closer towards our 2016 release date aligned to Sibos – Geneva, where we will release the Capgemini World  Payments Report providing an authoritative view on the changing dymamics impacting the Payments industry.

For those wanting to understand just what your API enabled architecture to support the system of engagement use case needs to look like, please approach your Capgemini Financial Services representative as we are leading the pack in establishing behavioral driven devops solutions to significantly accelerate the software development timeframe for secure API interconnection, all wrapped into what we are now calling the Immediate Environment.  

#Accelerate #Digital #Transformation in #Banking and #Payments @philipgomm