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12 It's vital that banks adjust to the new status quo of constant change. Part of this new paradigm is that even once banks have completed the transformation to being fully componentized, there will always be new applications waiting to be swapped into the system. That, after all, is partly what "agility" and "futureproof" mean. It should also be noted how such increased agility will inevitably result in more dynamic competition between banks and other players. With more flexibility in customer-facing services, componentized banking is sure to usher in a new age of innovation, as more targeted applications and packages are rolled out to lure customers from one bank to another. In fact, Forrester lists "Improved customer service and experience and product and service innovation" as among the top three reasons for digital transformation among financial services firms in 2019. Inevitably, there will be winners and losers from such a jump in competition, though it's likely to be the banks that do not sign on to componentized banking early enough who will suffer most. Overall, the componentized revolution is likely to only be a positive for the banking sector, cutting costs, leading to more exciting innovation and allowing large institutions to offer services more in line with customer expectations in a number of other fields, banking or non-banking. Conclusion: componentized banking and a new age of innovation 05/ CONTENTS 01/ Executive summary 02/ What is componentized Banking? 03/ How to componentize 04/ Challenges & solutions 05/ Conclusion