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"An immediate and critical priority for banks is to offset the impact of squeezed revenue streams, which are under pressure from all sides."

Absolutely right!

IMHO,

BEFORE jump on in Digital Transformation, banks must solve its biggest problem: 

operational costs.

Fully agree with the concept of 'Fincumbent'.

See following my thoughts:

"  Agnostic Banking Infrastructure Platform

I totally disagree with the leaders of the largest banks in the world with regard to “technology companies with banking licenses”...

https://www.businessinsider.com/digital-banking-ecosystem-report

“The banking industry is in the grips of an identity crisis.

Leaders of the world's largest banks — such as Citi, BBVA, and Goldman Sachs — have begun describing themselves as technology companies with banking licenses.”

This is the completely wrong way to solve the identity crisis!

The Banking Business infrastructure is common for any Bank!

The Banking Business is a financial service provided to people, regardless of which the Bank is providing it.

That said, it is a huge waste of resources what banks are doing today, when each bank develops its own infrastructure spending Billions of Euros/Dollars on it.

So the proposal is to develop a quality infrastructure, as shown below, to serve banks, saving billions of dollars on the Banking Business which should be worth to help the un/underbanked to access banking services, among others.

Here comes into play my proposal of the Agnostic Banking Infrastructure Platform.

Thus, the Bank will do Banking and the Agnostic Platform will transform the financial activities into information and storage.

Then the Technology Vendor will sell/install/maintain the infrastructure, as “Tech vendors like Temenos, SAP, FIS and Fiserv among others may provide great technology, but consumers don’t know them from Adam.”

The Architecture proposal "Bank of the Future" completely fulfills the requirements of the "Agnostic Platform".

"Bank of the Future" Architecture

“The BotF reshapes the handling of Financial Systems, by eliminating the back office batch tasks, the products data and processes silos and all the DWs and corresponding ETLs.”

Having seen that, it was possible to construct a single framework for the banking business, carrying properties that give flexibility to adapt the framework for any region, respecting local customs, languages, accounting, currencies, and compliances among others.

The Future Scenario

Agnostic Banking Infrastructure Platform

By just having a 'single technical center', the Architecture allows to eliminate today's redundancies of having multiple data centers all around the world for the same Corporation."

-oOo-

That's it!

“The banking industry is in the grips of an identity crisis. Leaders of the world's largest banks — such as Citi, BBVA, and Goldman Sachs — have begun describing themselves as technology companies with banking licenses.”

https://www.businessinsider.com/digital-banking-ecosystem-report

I totally disagree with the leaders of the largest banks in the world.

Taking in mind that the Banking Business infrastructure is common for any Bank, my proposal is the Agnostic Banking Infrastructure Platform where the Bank will do Banking and Agnostic Platform will transform the financial activities of Banking into information.

By just having a 'single technical center', the Architecture allows to eliminate today's redundancies of having multiple data centers all around the world for the same Corporation.

@Sandrine Ferdane:

"...As lower interest rates globally reduce margins, efficiency is key.”


@Paula Cardosa:

“We prefer to focus on the skill we want to develop than in the number of startups we may lure into La Fabrique.”


In this world full of buzzwords, trends in any directions, 'Innovation Theaters' etc. your words focusing skills and efficiency are very proper and I fully support on.

I think it will be very productive to discuss the subject, as I developed a model on the matter.

The focus of the model is basically by eliminating legacy back office systems and the batch processes, being an end-to-end, integrated digital bank (Data in real time - at birth).

The technology to achieve that is here, fully available.

It implies a necessary potential shift in mindset and culture.

So feel free to contact me.
joao.bohner@gmail.com

P.S. Im not a Startup. I'm Independent Consultant.

@Amanda,
What happens in the Financial Industry is that the 'FIBox' is too old.
So we should not 'think-out-of-the-box' but 'forget-the-box'.
With this focus, I have built a Disruptive Architecture, Holistic Enterprise Architecture, "The Bank of the Future".
In this Architecture the Bank has to change the way it treats financial data and modify its operational processes through a Holistic Enterprise Architecture.
The ONLY way to achieve this is by eliminating legacy back office systems and the batch processes, being an end-to-end digital bank.
The technology to achieve that is here, fully available.
It implies a necessary potential shift in mindset and culture.
The paradigm shift, however, will compensate regally.
I am available to provide more details of the Architecture as well as my thinking of how the financial business will be managed near future.
joao.bohner@gmail.com

IMO the ocean, sea, lake or another river should not exists.
So the streaming data never 'stops'. The time is what flies forward and backward over the data stream to seek information according to analytical needs.

This is the wrong way of HSBC (and Barclays, Deutsche Bank, Citigroup, Societe Generale and many others) to cut costs.
The right way is to "eliminate" the legacy back office systems which 'eats' 70 thru 80% of the budget just to maintain them.
It's the huge drain of money spent for maintaining legacy back office systems.
To stop the drain, the Bank has to change the way it treats financial data and modify their operational processes through a Holistic Enterprise Architecture rather than 'by line of business'.
The only way to stop the drain is by "eliminating" legacy back office systems and the batch processes, being an end-to-end digital bank.
The technology to achieve that, is here.
It implies a necessary potential shift in mindset and culture.
The paradigm shift, however, will compensate regally.
joao.bohner@gmail.com

"the bankers do not master their data!"

It's so true!

Well said, Joris!