Newcomers: A Tesla in a Trojan horse
The traditional Core Banking System adresses the entire scope of needs of a retail bank in a purely monolithic fashion. All situations are taken into account, and a bank will be able to handle all requests, whether these come from their ordinary customers or from the regulator. But the world is changing, and new players are coming onto the scene and commonly seeking to tuck into a subset of the banking offering. Naturally, these disruptors are the first to adopt the DBS architectures. In them they are finding significantly reduced costs and extreme agility.
It is not the traditional retail banks that will be the first to adopt these new solutions, but rather, the e-money issuers, the payment institutions or the new providers of collaborative loans or financing, etc., who are cleverly using the new technologies to their advantage. Retail banks are thus finding themselves in competition with new players using new tools. If they want to stay in the race, they need to take on board these new means, pronto.