Enterprise Architecture Transformation Accelerates Digital Finance
Digital technology has created a new world for the financial services institutions out there. Digital banking and mobile payment are no longer foreign to most consumers. Consumers are now more engaging with technology because they have convenient access to the services on their mobile and through other channels. Financial services institutions embark on the digital transformation journey is stimulated by two main factors. 1) To meet consumer demands and 2) the increasing threat from other financial institutions. Implementing digital transformation in financial services institutions is much more complex than it seems.
Figure 1: Banking Ecosystems by McKinsey & Company
Banking ecosystems are extended into three levels and banks should raise past their core as a future growth. Financial institutions have always relied on their products as a path to grow and a secure and seamless IT infrastructure is required to leverage on all three ecosystem levels.
To get a holistic view of the technology throughout the financial institutions, they should establish an Enterprise Architecture Framework. The framework will align IT infrastructure with the financial institutions’ activities. Enterprise architecture improves organisational structure through productivity, agility, product and service timeliness, revenue growth, and cost reduction. Financial institutions need new focus on the functional capabilities to be able to combine amounts of information and hardware to enhance the current capabilities and create new capabilities that can provide new seamless financial services. Enterprise Architecture can guide financial institutions to get their current IT infrastructure ready for digital future. Architecting for these institutions requires extra effort due to the rules and regulations that they have to adhere to.
Financial institutions are in need of enterprise architecture in the digital IT era because of:
Enterprise Architecture should be able to structure and design the data architecture in financial institutions so that it can facilitate access to the fundamental matters (eg: customers and transactions) to create better digital experience. Enterprise Architecture guides these institutions to establish new digital capabilities and assists them to stay focus in order to deliver new set of values.
ATD Solution is organising a C-Level Breakfast Session discussing on Enterprise Architecture Framework for Financial Institutions this 15th January 2020. It will highlight the value proposition of Enterprise Architecture in organisational transformation, C-level role in Digital Transformation and other related issues. This event is by invitation only but if you wish to know more, contact (Ms) May Ling at 603 2288 1680 / 81 or email us at [email protected].
Author: Aaron Tan Dani
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