Composable Banking - what is it?

Composable Banking - what is it?

Premises taken in this white paper--

There is no such thing as a truly composable “core banking system” – core banking systems have not evolved to this level of design yet despite companies that claim to offer “100% cloud banking” including the core “back end”

• Digital and composable banking are mostly one in the same idea for the purposes of this paper
• There is no such thing as a truly composable “core banking system” – core banking systems have not evolved to this level of design yet despite companies that claim to offer “100% cloud banking” including the core “back end”
• Composable banking is not a clearly defined technology yet
• Digital banking has not been 100% successful yet
• There are companies that claim to offer composable banking components and they do but their proof of concept is spurious at best
• Issues exist with any banking in the “cloud,” the primary among which is that it is safe – that is not 100% a true statement
• Banks that have launched digital banking services (defined as banking mostly on a mobile or internet-enabled phone) have not necessarily experienced raving results
• The repositioning of the banking services market “to the cloud” due to the increased use of internet enabled mobile phones is at best not a massive shift in how banks still do most of their business
• Banks that are considering more use of the digital banking services and platforms are still advised to go with extreme caution into this technology because it has been “rushed to market” more than not and those who are offering these products are for the most part either very new companies or very “questionable” companies as to their true expertise in this area
• Composable banking may be the future when faster 5G phones are common but right now there are any number of risks associated with this type of banking where the driving force is attracting the millennial age customer base​

This is in progress - the future of banking is likely going to be composable banking where the traditional on site core system and servers disappear and go to the "cloud" where the banking software is then "composed" via a command center that connects all of the "software" parts of the bank and its products and services. This style of banking core and product software is not fully available yet except with a few companies that are promoting this new banking approach. However, to date only a few banks have launched composable software and have gone live with it. At present a fully functioning composable core banking system "off the shelf" does not exist yet. One may yet come around in the next few years, but it is too early to tell what will develop in this arena and who will develop it. The idea would be that you go to one or a few vendors who have partnered with a composable banking design and architecture and avail yourself of their services where your bank then becomes a part of the their system and you in fact rent what you need and rely on the vendor 100% to provide all of your software needs.

​MORE ON THIS IS COMING AS RESEARCH PROGRESSES - THE FULL WHITE PAPER ON THIS WILL BE ON THIS SITE ON MARCH 1, 2020