Few industries rely on technology as much as the financial services industry does. In fact, Gartner estimates that banks spend more than $650 billion on technology each year. Some question whether banks are spending enough, especially when customer expectations are rising, competition is increasing, and the regulatory burden shows no signs of slowing down. With more than two decades’ experience as a senior business leader I think that’s the wrong question.

The right question is about whether the investment is being directed to the right areas. Are banks focusing their investments such that they deliver what customers want, at a price point they are willing to pay and at a cost that is profitable? In the dynamic world of banking, where innovation is the becoming the lifeblood of progress, the concept of Composable Banking has emerged as a transformative force.

But what is Composable Banking, how can you use it and more importantly how can you choose the right provider? 

Sitting at the heart of banks, core banking platforms play a crucial role in enabling or inhibiting banks’ ambitions. Legacy platforms, once the backbone of our industry, are no longer fit for purpose. As the pace of change increases, so too does the need to choose one that will power your business forward.

Composable banking is a new approach that aligns speed, agility, and innovation to stay ahead in a competitive financial market. It allows banks to redesign banking at speed by using a platform to assemble modular, decoupled business capabilities, either custom-built or already available as SaaS or software. This approach enables institutions to quickly 'compose' a new banking application by assembling decoupled services aligned around business domains, with open and secure APIs to support composability.

The whitepaper's central question looms large: How do you know which composable banking platform to choose? How do you address the fundamental challenge of distinguishing between the allure of tech hype and the pragmatic pursuit of perfection? In an era dominated by rapid technological advancements, the excitement surrounding the latest gizmo or trend is palpable.

While innovation is essential, we must avoid the pitfalls of adopting technology merely for its own sake, falling prey to the allure of the latest hype. This is especially true when it comes to Composable Banking platforms.

Turning the promise of Composable Banking into reality, lies in striking a delicate equilibrium. It is about recognizing that technology is a means to an end, a tool that should serve the overarching goals of our institutions rather than dictate our strategies. We must resist the temptation to be swayed by the flashiest solutions and instead focus on those that align with our long-term vision, ensuring scalability, reliability, and practicality. We must scrutinize technological offerings not through the lens of perceived perfection but with a discerning eye for what truly aligns with the unique needs and aspirations of our bank and, ultimately, our customers.

Choosing the right composable banking platform is not a one-size-fits-all decision. It demands a nuanced understanding of the bank's goals, a thorough evaluation of the available technologies, and a commitment to selecting solutions that enhance agility and responsiveness. It is a journey that requires astuteness, guided by the understanding that the pursuit of perfection should not overshadow the practical realities of implementation.

As with all journeys, in addition to demanding a firm understanding of where we are and where we are going, among the keys to success are the quality of the route map and the navigation tools used along the way.