Editorial & Advertiser Disclosure Global Banking And Finance Review is an independent publisher which offers News, information, Analysis, Opinion, Press Releases, Reviews, Research reports covering various economies, industries, products, services and companies. The content available on globalbankingandfinance.com is sourced by a mixture of different methods which is not limited to content produced and supplied by various staff writers, journalists, freelancers, individuals, organizations, companies, PR agencies Sponsored Posts etc. The information available on this website is purely for educational and informational purposes only. We cannot guarantee the accuracy or applicability of any of the information provided at globalbankingandfinance.com with respect to your individual or personal circumstances. Please seek professional advice from a qualified professional before making any financial decisions. Globalbankingandfinance.com also links to various third party websites and we cannot guarantee the accuracy or applicability of the information provided by third party websites. Links from various articles on our site to third party websites are a mixture of non-sponsored links and sponsored links. Only a very small fraction of the links which point to external websites are affiliate links. Some of the links which you may click on our website may link to various products and services from our partners who may compensate us if you buy a service or product or fill a form or install an app. This will not incur additional cost to you. A very few articles on our website are sponsored posts or paid advertorials. These are marked as sponsored posts at the bottom of each post. For avoidance of any doubts and to make it easier for you to differentiate sponsored or non-sponsored articles or links, you may consider all articles on our site or all links to external websites as sponsored . Please note that some of the services or products which we talk about carry a high level of risk and may not be suitable for everyone. These may be complex services or products and we request the readers to consider this purely from an educational standpoint. The information provided on this website is general in nature. Global Banking & Finance Review expressly disclaims any liability without any limitation which may arise directly or indirectly from the use of such information.

Trends to expect in 2019 – Eugene Danilkis, CEO of Mambu

Digital spinoffs speed ahead

Banks have been forced to evolve and have begun launching their own fintech or digital bank. It is a trend we saw over the past 18 months and is just getting started. Spinoffs like Goldman Sach’s Marcus and ABN AMRO’s New10 are helping to fight fintech with fintech. They are launching greenfield tech-enabled businesses to tap market opportunities and embark on a lower-risk technological evolution. Spinoffs draw on the resources and experience of the parent institution while operating independently, embracing the technology and culture of fintechs. They deliver significant results in a short period of time, free of organisational and technological legacy that holds back traditional organisations.

Transition not transformation

Digital spinoffs spurred a rethink of how to solve specific market, technological or regulatory issues. Spinoffs highlight another trend: strategic and surgical transition projects instead of long, expensive and risky enterprise-wide transformations.There is a movement to centralise control of the balance sheet but decentralise deployment of services. Flexibility of technology enables decentralised deployment by individual businesses instead of the whole organisation. With a modular or componentised approach, the business unit has more agility to innovate and deploy a myriad of services to address specific needs at lower risk and cost. 

Collaboration in technology

Potential lies in a combination of technologies as part of a wider value chain. Institutions are beginning to design their operating model and technology for change which involves an API-driven composable architecture. This allows them to adapt quickly and mix the right technologies for the biggest impact.

 Acceptance of platformification

Platformification in the form of open banking and composable architecture will enable continuous and fast innovation for years. Instead of building in-house and propagating silos, institutions will connect more cloud-based services together, access more digital channels and services. If managed like a product, core assets can be reused, shared and monetised, extending the reach of existing services or provide new revenue streams.

Easing of regulation

More regulators are embracing cloud driven services, noticeably in countries that may not have previously had a public cloud footprint. Following regulators in the UK, France, Australia and Germany, those in Africa and Southeast Asia will continue to loosen regulation on public cloud usage. Supported by banks and cloud vendors, more software and services like information security, business continuity will be cloud-based and cloud agnostic which negates the perceived risk of cloud providers.