BIAN_01 : Introduction @ 10K ft
In this article, we will attempt to introduce BIAN to an audience with little or no exposure to this topic.
#bian #soa #banking #framework #api
(i): This article is part of our BIAN Series where we will attempt to get more content around BIAN and its implementation/ details/ options and research propositions.
Why learn about BIAN ?
The Banking industry, is undergoing a rapid transformation driven by digital disruption, regulatory changes, and evolving customer expectations. Customers now expect banks to provide seamless, personalised, and secure financial services across multiple channels — all at fingertips. This change in expectations, compounded by the need for cost-efficiency, security, and compliance, is driving the need for a standardised framework which is rendered by BIAN (Banking Industry Architecture Network).
Read on to know more about it….
What is BIAN ?
BIAN is an acronym which stands for Banking Industry Architecture Network.
In short, BIAN is a “standardised technology framework for Banks and financial organisations”.
BIAN or BIAN Framework, is a Enterprise Architecture framework (software), a collection of — Standardised functional domains, API Definitions, Data models, Business scenarios & Diagrams — supporting software development by collectively defining all services & processes in a Bank, and also enabling easier and faster technology inter-system integration
Most banks have mature IT adopting other standards, so why go for BIAN ?
BIAN covers the entire bank, and not just a specific function or service.
BIAN is a “standardised” collection of APIs, Data Models and Processes — applicable throughout all Banks and ISVs (involved with Banks) across the world and interoperates along with other industry standards.
Banks have varying degrees of IT maturity, with more and more banks trying to offer a “fully digital” service to it’s Customers. The approach of driving System integration through BIAN API’s embeds “Industry standardisation” within the bank, leading to lower costs and standardisation across the banking institution.
… what is the key benefit?
Once implemented, the promise is a clear and significant “reduction in IT Cost” for — system integration, upgrade, migration or replacement of any system — by virtue of standardised APIs and data models, which is used by all organisations in the industry. There are other benefits of improved modularity of business, services orientation and improved agility.
Who manages BIAN ?
“When we dream alone it is only a dream, but when many dream together it is the beginning of a new reality.” — Friedensreich Hundertwasser*
BIAN framework comes out of BIAN organisation.
BIAN Org (https://bian.org) is a not-for-profit organisation supported by multiple companies. Each of these companies (across the world) pay an annual subscription fee to become a “BIAN Member”, which will grant them access to contribute towards the framework.
BIAN Org is responsible for evolution & management of the BIAN standard based on industry consensus, evolving use cases, and interoperability with other industry standards
Without the subscription fee, BIAN framework is available for all to use freely, and that you cannot contribute towards it.
In summary, BIAN Org is an international attempt to Standardise Banking Processes and Interactions.
… know more about BIAN organization (TL;DR)
BIAN Org is a collaborative organisation founded in 2008 by a consortium of banks, technology providers, and consultants with the goal of establishing an industry-standard architecture for the banking sector. Its core purpose is to define and promote a standardised Service-Oriented Architecture (SOA) for the banking industry, promoting “interoperability” between banks, financial institutions, fintechs, ISVs and other technology partners.
BIAN framework is designed to help banks avoid the inefficiencies and high costs that come from maintaining siloed IT systems — which by virtue of lack of standardised interoperable end points, lead to expensive, complicated and difficult to maintain Integration solutions. By adhering to BIAN’s architecture and service definitions, banks can achieve greater interoperability, reuse of software components, and improved integration between internal systems and external partners.
What are the benefits of implementing BIAN ?
- Standardisation: BIAN framework is a common language, a unified framework for defining banking capabilities and services, allowing banks, and ISV’s to communicate and integrate in a cheaper, and standardised manner.
- Interoperability: BIAN promotes interoperability between different banks’ systems and their vendors, reducing complexity and significantly improving time-to-market for new products & services.
- Modularisation: BIAN framework is based on service-oriented approach, which views banking functions in a modularised and discrete services, enabling banks to innovate and swap components without overhauling entire systems.
- Abstraction: Implementing BIAN allows for abstracting the data and integration layer from the underlying golden record systems / SORs via a standardised and extensible Business Object Model (BOM) and API layer, enabling re-use, easier upgrade and cost savings.
- Cost Efficiency: By using standardised components and services, banks can reduce costs related to development, integration, and maintenance of their IT systems.
- Agility: BIAN provides a foundation for banks to quickly respond to regulatory changes, customer demands, and technological advancements by adopting a flexible architecture — by its separation of functionality based on modularised services.
How does BIAN framework look / feel like?
BIAN framework is a collection of API Definition, Data models, Business scenarios & Diagrams showcasing each of these entities. These are documented under — https://portal.bian.org
These artefacts are constantly evolving as BIAN tries to find its place across multiple standards and evolving digital banking landscape.
Which banks have implemented BIAN completely?
The answer is no one at this point in time, though there are banks who are seriously taking steps in the right direction. BIAN covers literally every aspect of Bank and implementing BIAN in its entirety would mean introducing a change at every aspect of the bank, which is a big change — and hence will take time. What we may expect is that Banks may implement BIAN at different verticals in the bank, based on the business and market requirements as ongoing steps leading to a full implementation.
… are there banks who have implemented BIAN partially ?
yes, there are banks who have implemented BIAN in few niches within the Bank. More and more banks and software vendors (Fintech, ISVs and other Core banking platforms) are either adding a BIAN layer on top of their existing Integration layer (or) are changing their API exposure layer to be BIAN compatible.
Also note that there are a large number of banks who are a part of the BIAN ecosystem and they all have a programme to implement BIAN sooner or later.
How to know more about BIAN ?
There are multiple events around BIAN with an international BIAN Summit event at least once every year. In 2023, the BIAN Summit was based in London, UK in which a large number of participants (Banks, ISVs) participated. Similar or more turnout is expected for future as well. For more information refer — https://bian.org/participate/upcoming-events/
Rapid fire questions
Does one need to take subscription / BIAN org membership to use BIAN ?
No. BIAN is free and available openly to all at BIAN.org website. BIAN is a (banking) community effort, dedicated to solve common banking issues. So contributions from each bank in terms of the historical knowledge, and learning will make the industry stronger. This contribution is accepted only from BIAN members.
Does one need to be a Bank to be a BIAN Member?
No. Any organisation with interest in the banking / financial sector, which includes Banks, Financial oranisations, ISVs, Fintech, Technology consulting providers etc. can be a BIAN member. Do connect with BIAN.org for further information.
How does BIAN work with other standards?
BIAN is interoperable with other standards. BIAN doesn’t replace any other standards (or banks investment in standards), but works along with these standards.
BIAN Org works in close partnership with OMG (Object Management Group), The Open Group and ISO for ISO 20022 semantic models. More details are documented here — https://dev.bian.org/deliverables/bian-and-other-standards-bodies/
Is BIAN an AS-IS implementation standard?
Should not be considered as a hard — black or white standard. BIAN is a conceptual reference architecture and the functional domains (aka. service domains) is core mechanism to scope the boundaries of components such as “microservices” , “applications” , “software development projects” etc. The more closer a Bank is to aligning per BIAN standards, the higher its interoperability with other BIAN compatible banks, and the lower the integration costs (from System Integration — to — M&A scenarios). .
Conclusion
In an era where agility, cost efficiency, and customer-centricity are critical, BIAN offers a powerful framework for banks to standardise their IT architecture.
Do note that, while adopting BIAN has challenges w.r.t maturity and growing expertise in banking industry, the long-term benefits of cost savings, flexibility, and improved integration make it a worthwhile investment.
As more banks & service providers are adopting BIAN, streamlining their IT architecture, this enterprise architecture framework seem to continue to evolve, shaping the future of banking architecture in an increasingly digital world.
We @ BridgeApps are available for BIAN Consulting, PoC’s development and proving, Integration implementation approach consulting — around BIAN & BIAN trainings.
Do connect with us — for more information on this at — info@bridgeapps.co.uk
*Friedensreich Hundertwasser — there is a subtle contradiction in using this Austrian artist’s quote in this context, as he was someone who didn't believe in standardisation :)
