The Banking Industry Architecture Network (BIAN), which attempts to define common technology standards and services to advance interoperability, has welcomed four new members to its community at the Sibos trade show, including its first Asian bank, Bangkok Bank.
The largest commercial bank in Thailand joins three vendors at BIAN with Tata Consultancy Services (TCS), Axxiome and Este Group also signing up, alongside the Singapore Management University (SMU) which has forged an academic alliance with BIAN to build a ‘teaching bank’ to demonstrate service orientated architectures (SOAs) and their application in core banking and other services. The university will interconnect the leading core banking solutions using the BIAN service landscape.
SMU has designed a multi-year programme entitled ‘SMU Teaching Bank for Financial Services Technology Education’ (‘SMU Teaching Bank’). The demonstration bank will be built from the ground up, using a mixture of vendor products from BIAN to show real world change scenarios, such as a core banking system replacement or a bank merger project.
Hans Tesselaar, executive director of BIAN, which has members including Deutsche Bank, Credit Suisse, UBS, IBM and ING among others, is in Osaka for Sibos all this week and is being hosted by BIAN member and board member, Microsoft, at stand 1D03, where he will no doubt be keen to sign up other members.
Commenting on the latest BIAN arrivals, he said: “We are delighted to bring on board the four new members and are particularly pleased to have an Asian bank join the BIAN community. Bangkok Bank’s collaboration in the working groups will ensure our efforts have a truly global scope.
“Asian financial institutions are embarking on a wave of core system renewals and upgrades, as new foreign entrants are forcing domestic enhancements,” he continued. “[The] Celent [consultancy] predicts spend on core systems in Asia-Pacific to exceed US$2 billion in 2013. Integration costs can be as much as triple the purchase cost of software, meaning these banks could be spending up to $6 billion on integration, which is in this moment of time, unnecessary. It is imperative that Asian banks collaborate with their international peers when planning these core banking projects and adopt open standards for SOA.”