There have been a number of driving forces behind this. But, as the graph shows, when cloud solutions we introduced to banking in the last decade, both cost and time decreased rapidly.

This surge of pace was the subject of a recent article for Tech Wire Asia featuring Dr. Christoph Markert, our Head of Architecture. In the piece, he highlighted how banking technology used to be custom-built and unstandardized before cloud computing changed that narrative. “The cloud allowed faster deployments in more environments, saving time and cost with its implementation speed.”

Times have changed since banks needed to take a big bang approach to new product deployment. Banks can now deploy products more efficiently using parallel run, sidecar SaaS options. And most importantly, the cloud, which reduces the time to build and deploy, and allows more focus on feature development.

Reducing costs and time to deploy: SAP Fioneer’s strategy

At SAP Fioneer, we’ve leveraged cloud services to help banks evolve into a commoditized service center marked by efficiency, agility, innovation, and enhanced customer services. This enables banks to modernize their core applications, thus accelerating their digital transformation and delivering valuable and personalized services to their customers.

We recommend building overall core banking using two-platform architecture and complementing the core banking platform with a second platform for business solutions. This way, banks can deploy specific applications rapidly without impacting the core’s codebase. In addition, they can benefit from continuous innovations provided by their vendor. Read more about core banking strategy in our blog “The four pillars of a future-fit core banking strategy“.

We’ve identified three essential areas to help banks cut costs and time in building and deploying new applications:

  • Agile reaction to business needs: We allow banks to respond quickly to ever-changing requirements. By separating core processes for standardized offerings we enable market differentiators like personalized pricing.
  • Component separation: By dividing banking components into packaged capabilities, we offer the possibility for rapid expansion or integration with third-party services.
  • Standardized banking components: With pre-configured, end-to-end products, banks can launch new or improved services quickly without having to build from scratch.

The building blocks of banking: a platform approach

Dr. Markert likens our approach to building with Lego blocks. We’re allowing banks to plug pre-configured content into their platform without spending time building from the ground up. “You don’t have to build from scratch anymore. And this saves a lot of time, cost, and mitigates risks as well.”.

As Dr. Markert emphasized, speed equates to lower costs. By compartmentalizing new development, we consequently reduce risks and free resources for competitive edge development. It’s all about giving banks the agility to innovate and quickly deliver new products to their customers.

At SAP Fioneer, we’ve recognized the transformative power of technology in the banking industry. Embracing the cloud, providing standardized banking components, and implementing agile methodologies have allowed us to redefine the landscape: cutting costs, reducing deployment time, and sparking innovation. With our “Lego block” approach, we’ve made it possible for banks to accelerate into the digital age with precision and agility.

We’re not merely reacting to change. We’re shaping it, and we’re doing it with a vision that focuses on customer satisfaction and competitive differentiation. The path to digital transformation in banking is now clear, driven by SAP Fioneer’s commitment to efficiency, innovation, and adaptability.

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