The rise of the Bank in a Box solution has led to generation of significant prospects for early adopters. Some of the leading non-bank financial corporations (NBFCs) across the globe are seeking to monetise on their existing customer base and disrupt the traditional banking models using these solutions.
To respond in a rapidly changing business environment, it has become imperative for banks to use technology as an enabler.
A catalyst for banks to gain technology competence is the ‘Bank in a Box’ model, which is a white-label solution spanning across multiple core banking modules, channels and payment solutions to meet the operational needs of a bank.
The rise of the Bank in a Box solution has led to generation of significant prospects for early adopters. Some of the leading non-bank financial corporations (NBFCs) across the globe are seeking to monetise on their existing customer base and disrupt the traditional banking models using these solutions. This has been made possible because of ready technology infrastructure e.g. Tesco and Asda, leading retail stores in the UK, have ventured into financial services using these solutions. These players are unencumbered by the burden of legacy technology infrastructure.
Recent FinTech turbulence has challenged markets and has led to the entrance of a new stream of banks called Challenger Banks. These banks are cashing in on spaces left vacant by traditional banks and are swiftly embracing Bank in a Box solutions.
• Atom Bank has been riding on the rails of the FiS platform for Bank in a Box, and is offering a full repertoire of banking products.
Even larger banks are finding it problematic to sustain profitablity in an Bank in a Box - New kid on the block promising cost leadership and operational efficiencies environment surrounded by increasing regulatory burden and the need to maintain operational efficiency, scalability and flexibility.
Thus, it has become essential for banks to adopt leaner and agile technology models. Bank in a Box solution has been instrumental in simplifying the overall IT landscape by offering service-oriented architectures, rich integrated experience, and highly customisable interfaces to existing IT assets.
An example of a large-scale transformation is the adoption of Bank in a Box by ING Direct in Australia, where they tracked down several processes from minutes to seconds across several applications.
Each bank needs to come up with a clearcut business and technology strategy in dealing with the changing financial ecosystem. Banks can choose to be first movers, followers or take a defensive stand altogether. To align with any of the strategic choices, collaborating with FinTech is seen as a revolutionising trend across the banking ecosystem.
This article is an excerpt from out Thought Leadership document "Fintech in Nigeria: Understanding the value proposition" . Click here to download the publication.
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