It’s all change in banking! I’ve worked in Banking IT for more than 20 years and never has the pace of change been so quick. Now, rather than the traditional ‘Big Names’ always coming up with new ideas and technologies, new start ups and FinTech’s are seriously getting in on the game. The rapid developments in Coding languages, IAAS (Infrastructure as a Service), the falling cost of IT and new, innovative and highly collaborative ways of working has meant that Innovators can develop new technologies using real user data to design and develop existing, highly desirable services and solution – and get them to market in record time.
A major catalyst is the European Open Banking Directive. This encourages new, disruptive players to get involved to develop and deliver new Banking functionality which is outside of what would be considered traditional Bank servicing.
What’s more, the UK Open Banking Implementation organisation has developed an agreed set of API’s (Application Programming Interface) that TPP (Third Party Providers) can utilise to access Bank data. This means that both the Banks and FinTechs have the opportunity to exploit and develop new Applications to compare banking Product sets and aggregate Customer and Account data across the Banks.
So how should a FinTech with a great application idea (and a brilliant team) get started?
Today, Industry sandboxes offer a new way forward. FinTech’s can now develop, test and prove ideas, producing a robust Proof of Concept using an industry sandbox. A sandbox enables start ups with new product ideas to accelerate development and testing using test bank data so that innovative ideas can get to market quickly and cost effectively. Many established banks are getting in on the ‘sandbox’ initiative, Danske Lloyds and Nationwide all have a Developer Portal giving access to code examples and other helpful documentation. Leading banks including Allied Irish, Barclays and Royal Bank of Scotland have all invested in Sandbox technology which FinTech’s can access. This means that FinTechs can prove API’s work with Industry approved data, using Production like Test Data always throws up Use Cases that you did not consider.
New entrants are also making it easier to get involved. Avaloq and Starling Bank actively encourage innovation with their Developer Platforms. Both deliver access to their test data and have a wealth of documentation with a much greater range of functionality. Starling even let individuals test by accessing personal own account to prove instant value and engagement. Not sure where to start? Why not take a look at GITHUB. It has code examples, collaboration projects to listen, learn and grow ideas and discussion forums covering every stage of the development life-cycle.
Or why not check out Open Bank Project Berlin? This Project is the leading Open Source API and App store for Banks. It’s open source APIs and surrounding ecosystem of tools, together with a pro-active Fintech developer community helps banks rapidly engage with the next generation innovators safely and securely.
You know that brilliant idea you had last night? What’s stopping you?