Bankloch

  In today’s hyperconnected digital economy, no company is an island. Businesses thrive when they become part of a broader ecosystem—and APIs are the glue that holds these ecosystems together. APIs (Application Programming Interfaces) are like digital Lego, enabling companies to exchange data and services in a standardized, automated way. When well-designed and thoroughly documented using standards like OpenAPI, they reduce friction in integration, making partnerships easier to establish and more reliable to operate. But APIs alone aren’t enough. They are merely the channel to digital services—what lies behind them is just as critical. Software quality, including strong performance, security, scalability, and resilience, is essential. When APIs from different players are orchestrated effectively, they create seamless, powerful user journeys. The financial services sector has already seen this through Open Banking and PSD2. While the scope and usage remain limited, these initiatives...

In many financial institutions, architecture teams serve as central advisory units, overseeing multiple projects and defining architectural standards. These teams often include various specialists—enterprise, solution, integration, and security architects—each responsible for reviewing, amending, and validating proposed solutions. However, this layered oversight can lead to inefficiencies. Architects must stay continuously updated on project developments and are often only engaged during the design phase. Yet, as deadlines and budget pressures mount, shortcuts are taken. The result is a significant gap between the intended architecture and the delivered solution. While resource constraints are partly to blame, a deeper cause lies in   Conway’s Law . In 1967, Melvin Conway observed: " Organizations which design systems …​ are constrained to produce designs which are copies of the communication structures of these organizations. " In essence, the structure of a company—its team...

In the telecom world, number portability has long been a reality. You can switch mobile providers without losing your phone number — a change that radically transformed the industry. It made switching carriers seamless, eliminating the hassle of informing contacts about a new number. This one innovation significantly boosted customer mobility and competition across the sector. Now imagine if banking worked the same way. Switching your primary bank account today is far from effortless. From opening a new account to closing the old one, the process is often time-consuming and costly. Some banks even restrict flexibility by requiring your salary to be deposited into the same account that holds your mortgage or loans. This bundling makes it even harder to switch. And the challenges don’t end there. A new IBAN means updating every organization that pays or charges you — employers, tax authorities, childcare providers, pension funds, utility companies, and countless subscription services. Di...

On August 1, 2024, the European Union’s   AI Act  came into force—the world’s first legal framework regulating artificial intelligence. Designed to balance innovation and risk, this regulation introduces a series of staggered compliance deadlines, with most provisions becoming fully applicable by mid-2026. However, some prohibited AI uses, such as real-time biometric surveillance in public spaces, will be banned within six months. Fines for non-compliance will also be severe, reaching up to 7% of global annual turnover for violations involving banned AI applications. The AI Act’s   compliance obligations   are still evolving, but organizations must start preparing now. The act introduces risk-based classification for AI systems and imposes specific requirements on developers and providers, particularly in regulated industries like financial services. In the meantime, a lot has been written about this regulation. Supporters praise the EU’s proactive stance, emphasizin...