# Bringing financial services into the digital era
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-11-08
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: How Banks Can Overcome Interoperability Obstacles in the
Meta Description: Discover how BIAN is leading the way in standardising core banking architecture to boost innovation and collaboration in the digital era.
URL: https://financedigest.com/bringing-financial-services-into-the-digital-erahtml

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_By_ **_Hans Tesselaar,_** _Executive Director of BIAN_

The financial services industry is facing significant change. In today’s digital environment, financial organisations have realised without a comprehensive digital infrastructure; it’s impossible to bring services to market as quickly and efficiently as they would like – and need.

The pandemic put a spotlight on the need for [digital transformation within the financial services](https://www.financedigest.com/how-to-enhance-banking-services-with-digital-performance-intelligence.html "HOW TO ENHANCE BANKING SERVICES WITH DIGITAL PERFORMANCE INTELLIGENCE") market. But how can banks overcome the obstacles surrounding interoperability that prevent [financial services](https://www.financedigest.com/trends-in-the-financial-service-landscape-and-the-impact-on-fraud.html "Trends in the financial service landscape and the impact on fraud") from collaborating and moving forward into the ‘digital era’?

**A lack of** [industry standards](https://www.financedigest.com/the-gibraltar-blockchain-exchange-announces-public-token-sale-event-to-create-world-leading-licensing-and-regulation-standards-in-the-industry.html "The Gibraltar Blockchain Exchange Announces Public Token Sale Event To Create World Leading Licensing and Regulation Standards In The Industry")

During the pandemic, banks were forced to become digital entities virtually overnight, with consumers increasingly anxious about their financial well-being and ability to [manage their finances](https://www.financedigest.com/how-parents-can-help-students-manage-their-finances.html "How Parents Can Help Students Manage their Finances") online. However, it became evident to the industry that the extensive use of legacy technology within banks, and a lack of industry standards meant the speed at which these established institutions could [bring new services to life](https://www.financedigest.com/trump-charges-bring-new-york-zombie-case-back-to-life.html "Trump charges bring New York ‘zombie case’ back to life") was often too slow to satisfy the customers demand.

The lack of [industry standards has meant that banks continue to be restricted by having to work with partners based on their proprietary language and the way](https://www.financedigest.com/5-ways-the-fs-industry-can-support-the-recovery.html "5 ways the FS industry can support the recovery") they operate alongside their existing ecosystem. This is instead of their functionality and how they could potentially transform the [bank and its services](https://www.financedigest.com/britain-seeks-to-boost-banking-services-from-fintechs.html "Britain seeks to boost banking services from fintechs"). This limits the industry’s ability to deliver new best-of-breed [services aligned to today’s digital consumer](https://www.financedigest.com/do-consumers-want-robo-advisory-services.html "DO CONSUMERS WANT ROBO-ADVISORY SERVICES?").

**The** [need for collaboration](https://www.financedigest.com/why-finance-needs-to-collaborate-to-get-rid-of-internal-worries.html "Why finance needs to collaborate to get rid of internal worries")

To innovate and overcome these obstacles, [banks must](https://www.financedigest.com/why-finance-professionals-must-bank-on-a-journey-to-the-cloud.html "Why finance professionals must bank on a journey to the cloud") prioritise working outside of their four walls. But to do this, it must be possible for [financial institutions](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023") to communicate with ease, and transfer information securely and freely, rather than face barriers to this cooperation.

This is why the not-for-profit [Banking Industry](https://www.financedigest.com/how-is-green-finance-reshaping-the-banking-industry.html "How is green finance reshaping the banking industry?") Architecture Network (BIAN) was set up in 2008. The organisation, which consists of leading banks, technology providers, consultants and academics from all over the globe, continues to [focus on lowering the cost](https://www.financedigest.com/gms-cruise-to-focus-on-cost-cuts-as-it-ramps-up-robotaxis.html "GM’s Cruise to focus on cost cuts as it ramps up robotaxis") of banking and boosting the speed of innovation in the industry.

Members [combine their industry expertise](https://www.financedigest.com/emvco-and-pci-ssc-combine-expertise-on-3-d-secure-2-0.html "EMVCo and PCI SSC Combine Expertise on 3-D Secure 2.0") to define a revolutionary banking technology framework that standardises and simplifies core banking architecture, typically convoluted, outdated, and inconsistent. Its [service landscape consists of banking](https://www.financedigest.com/axion-swiss-bank-and-avaloq-sign-long-term-contract-for-bpo-services.html "Axion Swiss Bank and Avaloq sign long-term contract for BPO services") business areas comprising business domains, each subdivided into service domains. A BIAN [service domain represents a generic business capability for which BIAN seeks to define the standard canonical semantic service for the banking industry](https://www.financedigest.com/73-of-employees-in-the-banking-and-financial-services-industries-are-looking-for-better-physical-and-mental-wellbeing-support-in-the-workplace.html "73% of employees in the banking and financial services industries are looking for better physical and mental wellbeing support in the workplace") and deliver a universal language. This has provided a future-proofed [solution for its members while fostering industry](https://www.financedigest.com/squirro-launches-new-augmented-intelligence-solution-insurance-industry.html "Squirro launches new Augmented Intelligence solution for the Insurance industry") collaboration.

**Coreless Banking**

The most recent initiative from BIAN is a key example of how [organisations can collaborate to overcome this lack](https://www.financedigest.com/lack-of-collaboration-and-skills-shortage-is-limiting-organisations-ability-to-meet-ifrs-9-requirements.html "Lack of collaboration and skills shortage is limiting organisations’ ability to meet IFRS 9 requirements") of industry standards. BIAN and its members have worked together to design the Coreless Banking platform, which [supports banks](https://www.financedigest.com/comserve-to-support-allied-irish-bank-nationwide.html "COMSERVE TO SUPPORT ALLIED IRISH BANK NATIONWIDE") in modernising the core banking infrastructure.

This initiative empowers banks to select the software vendors [needed to obtain the best-of-breed for each application area without worrying about interoperability and being constrained to those service](https://www.financedigest.com/do-you-need-to-buy-guest-post-services-why.html " Do You Need to Buy Guest Post Services? why?") providers that operate within their language. By translating each proprietary message into one standard message model, communication between [financial services](https://www.financedigest.com/the-future-for-financial-services-is-digital-engagement.html "The future for financial services is digital engagement") is, therefore, significantly enhanced, ensuring that each solution can seamlessly connect and exchange data.

With the capacity to be reused and utilised from day one, and the ability to be used by other institutions, the Coreless Banking initiative provides these endless opportunities for [financial services](https://www.financedigest.com/as-hackers-declare-cyberwarfare-financial-services-cannot-afford-to-be-complacent.html "As hackers declare cyberwarfare, financial services cannot afford to be complacent") industries to connect, collaborate and upgrade.

**Setting the standard**

It’s clear that the [world is facing a digital](https://www.financedigest.com/fraud-in-a-mobile-digital-world.html "FRAUD IN A MOBILE DIGITAL WORLD") awakening, and banks are eager to jump on board. It has never been more critical for [financial institutions to be able to work](https://www.financedigest.com/turning-a-blind-eye-wont-work-for-financial-firms-as-the-fca-tightens-its-grip.html "TURNING A BLIND EYE WON’T WORK FOR FINANCIAL FIRMS AS THE FCA TIGHTENS ITS GRIP") together and communicate in a universally recognised language. [Technology should not stand](https://www.financedigest.com/banks-stand-to-make-the-most-from-chatbot-technology.html "Banks stand to make the most from chatbot technology") in the way of this, but enable development and further encourage both digitisation and cooperation.

Additionally, ensuring that the rapidly evolving consumer has everything they need in one place has never been more essential, and the [time to enhance the digital](https://www.financedigest.com/playground-xyz-study-finds-carbon-emissions-from-digital-ads-fall-by-63-on-average-when-measured-and-optimized-for-attention-time.html "Playground xyz study finds carbon emissions from digital ads fall by 63% on average when measured and optimized for attention time") experience is now. By collaborating to a unified and common set of standards, [banks can overcome](https://www.financedigest.com/how-can-banks-overcome-the-tech-trust-gap.html "How can banks overcome the tech trust gap?") interoperability, embrace best-of-breed solutions across the board and achieve more than ever before.


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