European banks had begun to embrace digitalisation even before COVID-19, but the pandemic proved without doubt to customers and financial institutions that digital transformation is the only way forward. This is for two main reasons – first, to ensure business reliability in situations like the pandemic, and second, because customers’ expectations moving away from traditional brick-and-mortar banking to digital services via web or mobile.
For 150 years Danske Bank has strived to be a driver of growth and development, focused on the ambition of becoming a better bank for everyone. To fulfil our ambition of being among the top two in customer satisfaction, the bank’s Technology & Services team leads several initiatives to modernise applications and put in place a data foundation that will create a better and more digital customer experience. One of these initiatives is the modernisation of the customer information core infrastructure that will help us release the potential of customer data to create digital banking services.
Customer information – the heart of
all the bank’s services and operations
Customer information is at the very heart of the bank, and the basis of all services offered to our customers. Whether to open a new account, buy insurance, issue credit cards, or even for marketing, customer information is required by every service and function of the bank, to serve customers and conform to regulatory requirements. Customer information is also the basis of strategic decisions, to inform the bank on aspects like designing new products, offers, or digital apps and services.
Micro-services based architecture makes customer information easily accessible for faster and new digital banking services
In the journey of digitalisation, enabling the easy use of customer information through APIs will unlock vital business growth for the bank, lead to better customer satisfaction through faster, simplified services, and result in cost savings from the efficiency of operations. To enable this, the Digital Core team undertook an initiative to modernise the core banking infrastructure that stores core customer data. They migrated the core banking infrastructure from a monolithic application with tight coupling and strong consistency to a modern application that is based on loosely coupled services in micro-services architecture.
Modernising the back-end infrastructure with micro-services-based architecture makes it easier for teams to manage their infrastructure independently and efficiently and keep the services running. By exposing APIs through an API Gateway service endpoint, multiple functions of the bank can automatically and safely access authentic customer data to run their services, and also allow them to create new digital services.