In the 1970s, when the technologies at the heart of current core banking were being developed, the main purpose of a bank was to protect its customers' savings and make them grow. It is what is known as “the safe culture”. Banks were proud of the thickness of their bars, the size of their locks, the complexity of their keys. Today, the cryptography, firewalls and other strong authentication algorithms still belong to the old world that the banks continue to promote. The fortress bank has had its day.

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Although security mechanisms are obviously still essential today, these can be accessed by everyone and no longer form part of differentiating arguments. There was a shift from the “safe culture” to the “ecosystems culture”.


This shift covers all the aspects of open banking, APIs and the new interconnections. Behind these technical concepts hides a business revolution; Digital Banking Systems are going to allow bankers to build partnerships and devise new services with new players, which will generate new sources of revenue. To attempt “open banking” with an old core just doesn't make sense. The challenge lies in rapidly creating value with these different players, in order to boost local economies, which the banks themselves should be driving.

Next episode:

The ninth difference between CBS and DBS:

Seizing the opportunity the mobile represents

To be continued...