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3 Componentized banking could be the solution to the massive system overhaul banks are so sorely crying out for. By offering a solution as a network of individual connected elements, componentized banking affords banks incredible agility in terms of technology and application. Forrester's Q3 2019 Global Financial Services Architecture Survey showed that more than 90 percent of respondents – representing the financial services industry – say that they have already finished their transformation program, are working on their program today, or plan to start the transformation journey within the next few years. Clearly, across the banking industry, company boards are demanding change in the face of historic obstacles. They want to enhance performance and revenue growth, though they are restrained by a lack of IT agility. They are looking to reduce traditionally high IT maintenance costs and instead are aiming to reduce the intricacy of their legacy systems. They are searching for solutions from "best-in-class" vendors to be implemented, despite the fact that their current IT landscape is not flexible enough to accommodate them. They are trying to escape the limits of depending on single software vendors, so they no longer have to rely on broad "road maps," but rather can find specialists who target particular issues as they arise. And they are finding their answers to all these demands, and more, in the shape of componentized banking. Executive summary 01/ Eighty-eight percent of financial services firms say they are executing their transformation initiative or plan to start it within the next two years — the highest number since 2010. Source: Financial Services Firms Have Solid Plans For Transformation But Lack Urgency, Forrester Research, September 13, 2019 88% CONTENTS 01/ Executive summary 02/ What is componentized banking? 03/ How to componentize 04/ Challenges & solutions 05/ Conclusion

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