By : Vladislav Solodkiy
BaaS (bank-as-a-service) is the new black. One week ago former Barclays CEO Antony Jenkins has launched a new startup that aims to modernise the back office technology used by banks. 10x Future Technologies is working on a cloud-based core banking system — the technology that allows banks to hold deposits and accounts. Essentially, it’s the heart of banking. Antony Jenkins, who founded the company and serves as CEO, says in the statement: “Our core digital banking platform, based on advanced data modelling and database design, will allow financial services providers to develop a much deeper understanding of their clients, cut costs and deal with regulation.”
Recently Starling Bank and Mondo, the latest two challenger banks to win their UK banking licenses, have placed open APIs at the forefront of their strategies to maximize their competitive advantage over their incumbent rivals.
Application programming interfaces (APIs) are the pieces of software that allow two separate IT systems to communicate and interact with each other. Open APIs will allow both Starling Bank and Mondo to crowdsource the development of new products and services far more quickly and cheaply than they could manage on their own. This is a vital consideration for new entrants that have limited resources of their own and need to deploy a full service proposition.
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