Banking Industry Knowledge Document

1. Industry Overview

Market Landscape

• Global banking market: $200+ trillion in assets
• Key segments: Retail, Commercial, Investment Banking, Wealth Management
• Major players: Traditional banks (JP Morgan, HSBC), Digital banks (Revolut, N26)
• Rise of FinTech disruption and digital-only banks
• Open Banking and Banking-as-a-Service (BaaS) trends

Regulatory Environment

• Basel III/IV requirements for capital adequacy
• Regional regulations (Dodd-Frank, PSD2, MiFID II)
• Data protection requirements (GDPR, CCPA)
• Know Your Customer (KYC) and Anti-Money Laundering (AML)
• Open Banking regulations

Industry Challenges

• Digital transformation pressure
• FinTech competition
• Regulatory compliance costs
• Legacy system modernization
• Cybersecurity threats
• Customer experience expectations

2. Business Architecture

Value Chain

Primary Activities:

• Product Development & Innovation
• Customer Acquisition & Onboarding
• Account & Transaction Services
• Lending & Credit Management
• Investment & Wealth Management
• Risk Management & Compliance

Support Activities:

• Technology Infrastructure
• Financial Operations
• Human Capital Management
• Regulatory Compliance
• Security & Fraud Prevention

Business Capabilities

L1 Capabilities:

1. Customer Management

   • Acquisition
   • Service
   • Relationship Management

2. Product Management

   • Development
   • Pricing
   • Portfolio Management

3. Operations Management

   • Transaction Processing
   • Settlement
   • Reconciliation

4. Risk & Compliance

   • Credit Risk
   • Market Risk
   • Compliance Monitoring

Operating Model

Typical Structures:

• Line of Business-based (Retail, Commercial, Investment)
• Geography-based
• Customer segment-based
• Product-based
• Matrix combinations

3. Technology Landscape

Core Systems

1. Core Banking Systems

   • Account Management
   • Transaction Processing
   • Customer Information

2. Channel Systems

   • Online Banking
   • Mobile Banking
   • Branch Systems
   • ATM Networks

3. Common Platforms

   • Core Banking: Temenos, FIS, Fiserv
   • CRM: Salesforce Financial Services Cloud
   • Payment: Swift, FIS, PayPal
   • Risk Management: Moody's, SAS

Technology Trends

• Cloud adoption (Private/Hybrid)
• API-first architecture
• Microservices transformation
• AI/ML for automation
• Blockchain/DLT
• Real-time payments

IT Operating Model

Structure:

• Business-aligned IT teams
• Platform teams
• Infrastructure & Operations
• Security & Compliance
• Innovation Labs

4. Value Streams & Processes

Core Value Streams

1. Customer Onboarding

   • Application processing
   • KYC/AML verification
   • Account setup
   • Service activation

2. Lending Operations

   • Application processing
   • Credit assessment
   • Approval & Documentation
   • Disbursement
   • Monitoring

3. Payment Processing

   • Transaction initiation
   • Clearing
   • Settlement
   • Reconciliation

Support Value Streams

1. Regulatory Reporting

   • Data collection
   • Report generation
   • Verification
   • Submission

2. Risk Management

   • Risk assessment
   • Monitoring
   • Mitigation
   • Reporting

5. Agile Transformation Context

Transformation Drivers

• Time-to-market pressure
• Customer experience demands
• FinTech competition
• Cost optimization
• Regulatory agility
• Legacy modernization

Common Patterns

1. Transformation Approach

   • Digital-first initiatives
   • Product-oriented teams
   • Customer journey focus
   • DevSecOps adoption

2. Organization Structure

   • Product-aligned teams
   • Feature teams
   • Platform teams
   • Centers of Excellence

6. Change Management Considerations

Cultural Aspects

• Risk-averse mindset
• Compliance-driven culture
• Hierarchical decision-making
• Technology resistance
• Siloed operations

Stakeholder Management

Key Groups:

1. Internal

   • Board/Executive Leadership
   • Business Unit Leaders
   • Operations Teams
   • IT Teams
   • Risk/Compliance Teams

2. External

   • Regulators
   • Customers
   • Partners
   • Shareholders

7. Reference Information

Industry Standards

• BIAN (Banking Industry Architecture Network)
• ISO 20022 (Financial Messaging)
• PCI DSS (Payment Card Industry)
• SWIFT Standards

Key Frameworks

• TOGAF for Banking
• ITIL in Banking
• COBIT for Financial Services
• Risk Management (COSO, Basel)

Metrics & KPIs

1. Business

   • Customer Satisfaction (NPS)
   • Cost-Income Ratio
   • Return on Equity
   • Market Share

2. Operations

   • Transaction Processing Time
   • System Availability
   • Error Rates
   • Compliance Violations

3. Digital

   • Digital Adoption Rate
   • Mobile Banking Usage
   • Online Transaction %
   • Digital Sales %

Glossary

• Core Banking Terms
• Regulatory Terms
• Technical Terms
• Industry Acronyms