All strategic drivers of a bank (revenue, cost, risk) are today significantly driven by new technology platforms. Traditional banks have to speed-up their digital transformations or risk losing their market position. Big Tech and FinTechs are already here and showing the way. Banks should respond with a Brownfield and Greenfield strategy mix!

Why European banks should re-launch their digital transformations

  • With the rapid and accelerating emergence of new technologies (e.g. event streaming, blockchain, cloud) in the last years, banks have now come to a decision point if and in how far they want to help to shape the new bank structures with new technologies
  • Leading global banks are going in new ways and are thinking banking in a fundamentally new way about their bank platforms and how they intend to serve their customers going forward
  • In addition, BigTechs and FinTechs launch innovative financial services utilizing tech capabilities while operating a modern platform at higher speed and a lower cost base
  • In our view, banks have to get ready and use their existing competitive edge areas (client intimacy, product know-how, regulatory depth) in order to adapt and defend their market position within the new technology paradigm
  • With focus on bank steering, strengthening the adaptiveness and moving quickly towards efficient fit-for-purpose architecture while complying with new regulatory paradigms is unavoidable to reach the ambient cost reduction targets

Key drivers for the transition towards a fully digital platform

  1. Client demand and growth
  2. Efficiency
  3. New partnerships
  4. Synergies
  5. Self-financing business case

How Bearing Point can help

As a foundation for individual digital transformation initiatives, Pearsons Consulting Ltd provides guidance for strategy and execution using – among other assets – its new banking platform architecture models as well as tailored roadmaps for the digital transformation journey.

The spectrum of architecture models seen in practice vary from traditional architectures over Brownfield architectures to Greenfield architectures. To obtain significant business results by exploiting the digitalization potential, a minimum level of well-architected technical capabilities along with business and organization capabilities is necessary to be established at scale. Therefore, we recommend establishing basic capabilities while moving from traditional architectures to a Brownfield architecture model and scaling matured capabilities when moving to a Greenfield architecture model.

 

Digital transformation journeys typically aim towards a Brownfield or Greenfield architecture model, often based on a strategy-mix distinguished by division or product.

Pearsons Consulting Ltd assists clients in their individual digital transformation journey and based on their ambition from strategy to execution in multiple phases:

  1. Get ready for Brownfield: Move from a traditional architecture model to a Brownfield architecture model by developing a target picture and a roadmap to establish necessary basic capabilities in business and IT for initial business results through exploitation of initial digitalization potential
  2. Get ready for Greenfield: Move from a traditional architecture model or a Brownfield architecture model to a Greenfield architecture model by developing a target picture and a roadmap to establish scaled mature capabilities in business and IT for significant business results through significant exploitation of digitalization potential
  3. Expand innovation: Move beyond an established Greenfield architecture model by developing a target picture and a roadmap to expand innovative capabilities in business and IT for advanced business results through advanced exploitation of digitalization potential

Digital bank steering transformation

The consistent use of data lineages allows the step-by-step generation of cost reductions by an early operative use of the new fit-for-purpose bank steering architecture. Our unique approach enables the institutions to plan and execute the upcoming transformations more precisely, cost-effectively and with less risk than conventional transformation strategies.

Our experts and trusted advisors to clients in the banking and capital markets sector provide guidance and share experience with you. Get in touch!

Would you like more information?

If you want to get more information about this subject please get in touch with our experts who would be pleased to hear from you.

Banking & Capital Markets

New Banking: The path to efficiency and sustainable growth
Read more