Architecture for Bank as a Platform (BaaP)

By adopting a BaaP approach, banks will be able to shift to a business model that is based on service offerings as a means of delivering greater and more sustainable economic value. This vision calls for a modular and open IT architecture that can coexist with core banking systems while ensuring seamless data exchange between the bank and third parties.

To fulfil the vision of Bank as a Platform, architecture has to be made modular to support platform functions. Modular architecture can be approached from two angles: evolution of an existing monolithic architecture (the most common situation) or implementation from scratch of a brand-new architecture (not common, but necessary in certain situations).

The first step with both approaches is to identify the ultimate goal. A modular architecture must always support six basic requirements to communicate with other architectures:

1. Third-party communication
2. Data flow synchronisation at variable traffic speeds
3. Information symmetry
4. Homogenisation and formatting
5. Modularity management
6. Scalability

This paper aims to provide insights into the types of software mechanisms that a modular architecture should include to support a Bank as a Platform vision.

Bank as a Platform – open, modular and made-to-measure

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