Why banks need the Banking Industry Architecture Network (BIAN) model

Historically, banks who wanted to connect to a new fintech service or replace legacy systems faced several roadblocks. Connecting to a new fintech provider required custom development by legacy system providers, and replacing existing systems involved significant cost and risk. Further complicating things, banks and fintechs evolved one-off, disparate data models, increasing costs and reducing speed to market.

BIAN is a global, collaborative, not-for-profit organization formed of leading banks, technology providers, consultants, and academics to address these roadblocks through standardization. Adopting BIAN has the following benefits:

1.????? Standardizing reduces costs and improves interoperability. The BIAN model is an industry standard framework and APIs for banking processes and services. Aligning to a standard reduces bank development and maintenance costs and improves interoperability between systems and institutions. It also enables more cost-effective communication between legacy systems and modern applications.

2.????? Reference data models ensure interoperability: BIAN offers reference data models and business object models that help banks map their legacy data structures to modern systems. This mapping ensures that data can flow smoothly between old and new systems, ensuring interoperability. BIAN-compliant vendors can "plug and play."

3.????? Breaking down legacy systems reduces risk and improves time to market: BIAN promotes a service-oriented architecture, which allows banks to break down their monolithic legacy systems into smaller, reusable service components. This modular approach makes updating and integrating different parts of the system easier without overhauling the entire infrastructure.

4.????? Improved Compliance and Governance: BIAN's standards-based approach aids in better compliance with regulatory requirements and enhances governance.

5.????? Enhanced agility: The model supports agile development and faster time-to-market for new banking products and services.

BIAN aims to create a more open, efficient, flexible, and interoperable banking ecosystem. By adopting BIAN's framework, banks can modernize their IT infrastructure more efficiently, ensuring that legacy systems continue to deliver value while integrating seamlessly with new technologies.

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