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, BearingPoint 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.

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