The seventh issue of the Financial Technologies Quarterly was published with the theme of the future of Core Banking. This issue examines the new concept of “coreless banking” in which, instead of an integrated software, a set of software interact with each other to carry out tasks.
According to Iran digital economy annotation, One of the topics that has opened its way in the banking industry these days with the aim of increasing speed and flexibility is the concept of Coreless Banking. In this type of banking, according to a simple definition, an integrated software does not provide all bank services, but a set of software interacts with each other to carry out tasks. Coreless banking is currently offered by some corebank suppliers in the world, and some Iranian companies have also taken steps in this field. Therefore, the seventh issue of Financial Technologies Quarterly has addressed this issue in a forward-looking approach. In this issue, 10 experts of the country have told about their experiences in this field, advantages and disadvantages, implementation requirements, architecture, hardware and the future of Coreless Banking.
The first article of this quarterly is written by Mohsen Azizi, an expert on digital banking. In this section, he examines the issue of coreless banking and its market size, and in several cases, he lists strategies to reduce its risk. In the end, Azizi says about the implementation of this new type of banking: “There is no escaping acceptance and harmony with the rapid development of technology, and the regulatory and supervisory frameworks have no choice but to accept new trends and concepts.”
Fatemeh Heidari, Dotin’s centralized banking resources product manager, has discussed the architecture of Coreless Banking in an article. Until recently, she believes, the only options available to banks were to live with what they had and try to work around the restrictions, or to accept the significant risk and expense of replacing the old core banking systems. But now there is a third option called Coreless Banking. From Heydari’s point of view, the implementation of this type of banking is beyond the mere implementation of retail services. This requires API management, complete automation and strategic domain segmentation.
Saman Zakerzadeh, the vice president of policy and development of new technologies of the Information Technology Department of the Keshavarzi Bank, is another expert who has expressed his views about this new concept in banking in this issue. He interprets Coreless as a minimal view and says: “To call the change in this centralized architecture Coreless or to try to reduce dependence on Core without creating such a concept. Even if we replace the minimalist view of Core with the maximalist view, it does not make a difference in the main story. Many Iranian banks, without naming Coreless, have taken or are currently taking measures in practice and considering their digital maturity level, the result of which will be the gradual reduction of dependence on Core and the realization of Coreless banking.”
Amirreza Leilazi, Bank Mellat’s consultant, calls the two migration approaches to change the architecture from core banking to coreless banking as simplification, construction, and migration and jumping, and discusses the strengths and weaknesses of each of them. Finally, he concludes that banks should adopt a portfolio management approach to modernize their core banking system.
Farzaneh Gholam Abolfazl, the chairman of the board of directors of Noavaran Lotus Piroozi and the chief advisor of digital transformation, talks about his experiences in the field of information and communication technology and considers Coreless Banking as a factor in facilitating the digital transformation of banks. She states in a part of this article: “The issues that are raised in the bank today as ambiguity, challenge, transformation and concern, happened and passed in ICT more than 10 years ago. In the telecommunication and telecom industry, an integrated giant called the operator’s integrated core used to be built and everything was based on it. Then it was decided to separate the infrastructure layer from the service layer and allow creativity to emerge in the service layer.”
No Comment! Be the first one.