BIAN unveils fourth version of Coreless Banking Initiative at Money20/20 USA

BIAN, an independent non-profit standards association, has unveiled the fourth version of its Coreless Banking Initiative. The announcement came following the Money20/20 USA event, bringing to light the collaboration among various prominent financial institutions and tech companies, including Wells Fargo, Bangkok Bank, Bantrab, IBM, Salesforce, SID Global Solutions, Zafin, TCS, Envizion, Solace, and Temenos.

Coreless Banking 4.0 represents an evolution from its predecessor, which was launched last year. This new iteration introduces advanced artificial intelligence (AI) and machine learning capabilities designed to enhance customer retention strategies for banks. The updated proof of concept enables banks to identify customers who might potentially switch to rival banks. More importantly, it leverages data and analytics to create personalised offers that could persuade these customers to remain loyal to their current banks.

This development is crucial in the current financial landscape, which has seen significant customer migration. According to statistics from 10x, a staggering one in eight global banking leaders, or approximately 12%, have experienced a 30-40% loss of their existing customer base to competitors. This highlights the urgent need for innovative solutions to bolster customer retention.

The Coreless Banking 4.0 initiative also confirms that offering these new capabilities via standard service definitions does not necessitate the relinquishment of a financial institution’s intellectual property. These standard definitions serve as foundational elements that banks can customise and implement based on their specific requirements.

Steve Van Wyk, Chairman of the BIAN Board, expressed his satisfaction with the continued success of the Coreless Banking model. He noted, “The fact that our Coreless Banking model continues to go from strength to strength showcases the value of the BIAN working model to solve common industry problems. By combining the expertise of our member organisations with BIAN Models, BIAN APIs, and BIAN Microservices, we’re able to think outside of the box, without the limitations set by working in siloes.”

Bangkok Bank played a pivotal role in the development of the updated concept. Ian Guy Gilliard, Senior Executive Vice President at Bangkok Bank, underscored the transformative potential of Coreless Banking. He remarked, “We fully believe that the Coreless Banking concept will be the key to all banking developments in the future. The updated concept will use the latest technology to analyse customer behaviour insights to help banks to provide clear value to the customer. This will make an incredible difference across our business.”

This initiative signals a potential shift in how banks may conduct their operations, focusing on technological innovation to retain customer loyalty and remain competitive in an ever-evolving financial marketplace.

Source: Noah Wire Services