Composable Banking Deloitte Be Report v2 en PDF
Composable Banking Deloitte Be Report v2 en PDF
Partner spotlight 07 Technology On the regulatory side, the scope and role of regulators at
AI solutions constantly become smarter and faster. jurisdictional level are evolving in light of activity-based
Therefore, elegant, automated processes are the new regulation, emerging sources of risk, and the entry of non-
Composable banking allows for a new way to transform 09 standard. This contrasts with the technology costs and bank players into the ecosystem.
development pace of incumbent banks.
Flexible delivery models 10
Considerations 11
New profiles and new Connectivity and
Deloitte can provide E2E support 12 ways of working democratised data access
Contacts 13
Evolving banking Smarter, faster
expectations machines
ENVIRONMENT
Changing rules of
Value chain displacement
engagement
01
Unprecedented macroeconomic environment
Composable banking - The banking transformation approach that treats change as a constant Composable banking - The banking transformation approach that treats change as a constant
Flexibility enables neobanks to embrace the Modular does not mean composable
changing environment and disrupt the status Banking system vendors have been touting modularity for years. What they really mean is a predefined
suite of proprietary modules that extend the functionality of their core systems. They are extensible but
they are not flexible nor open. An apt metaphor is the jigsaw puzzle piece vs the Lego brick:
quo
Non-traditional players and neobanks like Revolut or N26 are
growing fast by offering seamless and easily accessible digital
• Founded in Munich in 2013
services. These players possess the business agility to quickly
adapt their product line and offer it through scalable channels,
• Full banking license Modular
with the customer at the centre. This flexibility toward the
• Servicing +7M customers in 25
countries and +150K customers in BE
customer is enabled by the flexibility of their internal systems • E2E core banking system provided by established SaaS vendors
• Functionality of core can be extended by adding architecturally separated modules
Inspiration for established players?
KEY STRENGTHS OF ESTABLISHED • Choice of modules is limited to what the vendor (or his ecosystem) provides: the system is not
Established players can rely on key strengths such as brand
PLAYERS open or flexible
recognition and trust, a strong customer base, extensive customer
data, a high level of compliance with regulations in place or a
Result: A set of puzzle pieces (modules) that can be combined into one, predefined picture, with
Brand recognition and trust limited possibilities to change a piece for a better one.
strong balance sheet to compete in the market. Yet, a lot of these
players are challenged by the lack of flexibility of their architecture
landscape which prevents them from accelerating their pace of Strong customer base and
extensive customer data
transformation and support their latest strategies to stay ahead in
an ever more competitive market.
Composable
Strong balance sheet and proven
Deloitte identifies four transformation approaches that meet profitability
different strategic purposes and priorities. This paper will further • Core banking engine coordinates a set of independent components through open APIs
elaborate on how the recent trend around composable banking High level of compliance with • Functionality can be extended by adding or swapping components
solutions aims to address the current, but also the future regulations in place
• Choice of components is unlimited: any player can integrate with the system
challenges of these organisations.
Result: A Lego structure where blocks (components) can easily be swapped for best-for-purpose
solutions, allowing you to flexibly compose your future-proof solution landscape to design
differentiating customer experiences and address your specific market needs.
Relevant for systems with Relevant for IT driven E2E Relevant for value driven Relevant for non-strategic
high unamortised value replacement of the legacy business transformations activities to optimise cost
and/or highly customised aiming to reduce costs, aiming to build efficiency and availability
functionalities that simplify the architecture differentiating customer of technology expertise.
differentiate them in the within an agreed time experiences whilst setting
market that they want to frame, and adopt out-of- up a future-proof, flexible
keep. the-box functionalities of a and cost-effective IT
proven solution. landscape.
02 03
Composable banking - The banking transformation approach that treats change as a constant Composable banking - The banking transformation approach that treats change as a constant
”
Open, easy to integrate modules are essential for composability. Closed modules severely restrict agility. A risk
assessment application needs to be able to easily call out to an AML module or a KYC service.
04 05
04
Composable banking - The banking transformation approach that treats change as a constant Composable banking - The banking transformation approach that treats change as a constant
09
Composable banking - The banking transformation approach that treats change as a constant Composable banking - The banking transformation approach that treats change as a constant
Client
1. Enterprise architecture
Managed
Making use of a composable approach puts a stronger emphasis on the integration of the different solution components and
Deloitte acts as the single point of contact for
the customer for the delivery and/or the System generates new types of challenges (e.g., end-to-end responsibility on the overall solution design and performance, solutioning of
Mambu potential application failures that might occur in the run) that need to be addressed as from the start of the transformation.
contractualization of the different integration
components of its composable architecture Building a resilient architecture, envisioning different delivery models, and having the right governance to run the platform can
landscape to provide professional services for be the answer to these challenges.
configuration, integrations, custom business Integration Integration Integration
processes, customer builds, and maintenance
of the integrated solution. 2. Procurement
Having the ability to pick and choose a set of different solutions implies increased complexity in terms of solution procurement:
different vendor contracts need to be negotiated and properly managed in order to avoid vendor lock-in and keep the solution
Integration Integration landscape future proof. Therefore, it is crucial to establish a business-driven RFP process to ensure the right clauses are included
Supported
in the contracts with the different vendors.
Deloitte supports as a system integrator in the
Client
implementation of Mambu the integration
with other components of the client’s
architecture landscape.
institution contracts directly
The financial
with each System
3. Roadmap
component of its architecture as well as with integration
the system integrator. Before implementing such a business transformation programme, it is vital to have a clear view on the project set-up
Integrationhg
Mambu (greenfield, brownfield, or integrated) taking into account scope, timing, and budget. Important questions to consider are: What
u
domain of the business do we want to tackle first? When do we start decommissioning legacy systems in order to start realising
cost savings? Therefore, it is essential to develop a clear transformation roadmap bearing in mind the business priorities/needs,
friction points, and current IT landscape constraints.
5. Cloud maturity
Composable ecosystems are cloud-native. For enterprises with low cloud maturity, this implies a paradigm shift toward a cloud-
centric IT approach. This is not a straightforward exercise—it requires careful planning and sponsorship from key stakeholders.
10 11
The Contact Centre
Composable bankingof- tomorrow
The banking
enabled
transformation
by a Cognitive
approach
experience
that treats
| Deloitte
changeas as
a partner
a constant
of the Contact Center of tomorrow Composable banking - The banking transformation approach that treats change as a constant
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