Reflection of my Soul-“Next-Gen Dream Bank”

I am a customer of your bank, ensure proper care to me.

Bank has my financial data, analyze it & be my financial advisor.

I have put my trust, ensure that my money is safe & data is secure.

I want to explore diverse products & services, make sure that UX is simple & Unique.

Delight me and ensure availability of service when I need it.

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With my little understanding on banking and considering the next-gen customer behavior, I feel that Banking as a service (BaaS) is going to be the next big concept -which can serve the above-mentioned customer expectations all through. But how banks in Bangladesh can adopt BaaS? There are substantial ?global references ??, who are practicing BaaS, but is it really possible to roll out BaaS success story in Bangladesh? After all we have some unique macroeconomic perspectives ??. ?

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I strongly believe that “IT IS POSSIBLE”! and to create glowing BaaS model, we would need to change our attitude & approaches at first. BD Banks have to be opened up with non-financial companies or 3rd party service providers and enable them to create or design time sensitive & contextually relevant customized financial products & services on behalf of banks to decrease friction and improve consumer engagement through continuous learning on Customer Journey mapping (CJM). Banks have to evolve their role as AISP/PISP.

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Sounds like theory :P but practically how is it possible? lets dig it with my pain point :D

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Problem Statement: When I pay my daughters tuition fee through MFS platform with a transaction charge of 100 Taka, I always feel low, not because of the expense, but for missing out the opportunity of grabbing that 100 Taka to my Bank. What can be the way to earn that piece?

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Solution Statement: A non-siloed API program based on scalable technology stack can be the enabler or the springboard to bring that 100 Taka in my pocket within few seconds. But who will design that program or the tech stack? To do that, Banks should focus on new breeds of technology leaders who are conversant on current tech language and have authority to create relevant, data-centric products and services by doing hyper personalization through API integration. “Monetization of API” approach would be the new art of generating revenues and that approach will let banks do what they couldn’t dream earlier.

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There are lots of technology concepts or solution providers out there, who claim to enable a bank for such BaaS model. But do we have any proven use cases or successful prototype in terms of ROI in regards Bangladesh ecosystem? The answer is “NO”. Probably the concepts have references in Singapore or Europe or Africa, but who can guarantee that, it will work out in Bangladesh.

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Then what should we do? Rather waiting for the right solutions or platform, we should take the initiative and drive immediately to structure our existing data and built an open data lake platform, where we should allow linkage with external data sources & create a new data pipeline in collaboration with prudent 3rd party sources. The change makers who will lead the initiatives should have access into the data set to take the right decision in context of designing products & services platform. Prior to taking decision, change makers should have the empowerment from the top of the organization and tops should have mindset that, every idea will not hit the jackpot. Not every WOW! moment will be panned out.

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In addition to that, management should have tolerance for failure and enthusiasm for nurturing risk-taking mindset. Without risk, innovation/transformation can’t take place. Organizations should not pull the plug on an idea too soon by considering the risk or challenges, instead they should prepare the mitigation strategy. Change makers understanding or clarity about business kinetics and desired anatomy of customer experience is the pre-requisite to design the BaaS Model with “Dream Tech Stack” to ?build a sustainable “Next-Gen Dream Bank”.

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I have been studying this concept for last 02 years and I believe that, “A widely accessible API Sandbox platform can pave the way to build the BaaS model for bank and equipped change makers to ensure delightful CX . The ultimate objective of this platform is very simple: Creating More service per consumer (MSC) . More transaction per service (MTS). Based on that objective successful prototype in the sandbox will drive segmentation, product/ service through private cloud native architecture with embedded security feature. One highlighter point is, “Security need to be built in not on” and CISO should be the core member for in such initiatives.

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Highlights on Dream Stack: The “Dream Stack” will encapsulate data frameworks, user behavior analysis, collaborative innovation, design pattern, UX grammar and evolving cyber threat landscape. The API sandbox platform in that stack should have

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·?????? Platformization approach to host or adopt any technology framework.

·?????? API marketplace to connect 3rd Party Fintechs & independent developers with Bank & enable data sharing by following Bangladesh Bank regulation & government approved data protection act.

·?????? Open APIs for testing and showcasing solutions in PoC bed.

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Platform:

·?????? Orchestration module, Customizable front-end, workflow library.

·?????? Fine grained access platform to Fintechs, developers with Zero-Trust philosophy.

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API Marketplace:

·?????? In-house or 3rd party collaborated API marketplace. e.g. Auth API, Payment API , Data API.

·?????? Flexible search function, based on BB regulated controls & standardized taxonomy.

·?????? 3rd ?party profiles, which would be customizable and verifiable.

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Sandbox:

·?????? Technology stack agnostic which would be available on-demand.

·?????? Next-Generation coding languages & Database platform testing bed..

·?????? Developers should be able to create POCs by accessing and working with several data sources and APIs.

·?????? POCs from multiple developers can be stitched together to create end to end user journeys.

·?????? POCs can be tested in a 3rd party sandbox environment before deploying them to prod.

·?????? POCs can be evaluated with the sandbox operator setting rules, constraints and other controls over the environment.

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Focus areas of innovation & Features:

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·?????? Create a seamless digital UX catering to under served Gen Zs , consumer segments , trade finance & supply chain finance.

·?????? Integration across multiple platforms,3rdparty to create embedded finance ecosystem.

·?????? Enhanced data and analytics to provide personalized services.

·?????? Meet / exceed global benchmark, regulatory and customer trust expectations.

·?????? Independent test environment: Safeguard production APIs and data sources while testing,

reducing information security risk of unauthorized access or data breaches.

·?????? Rapid prototyping: Facilitates quicker development due to faster testing and/or failure cycle.

·?????? Evaluate feasibility, performance and applicability of partner solutions.

·?????? Simulates an end-to-end customer / product / data journey(s) resulting in streamlined cooperation among stakeholders and follow Devsecops practices.

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Because of my daughters, I became fan of animated films by Disney and wonder how Walter disney’s predicted the evergreen taste bud of kiddos. I loved one of his quotes and always believe,

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“All your dreams can come true, if you have the courage to pursue them.”

I believe the “Dream Stack” will lead us to “Dream Bank” One day ??

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I trust readers will find this article interesting and useful. Please feel free to email me your thoughts ([email protected]. ). Based on your observations and experience. future editions of “Next-Gen Dream Bank” will be woven.

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Reference: APIX Sandbox-Hackolosseum Platform

?Written By:

Md. Mahbubul Alam (Rafel)

A learner in the fast-evolving Fintech & Cyber Security Space