How I played with the wrong kids on the school yard and cofounded a - - PowerPoint PPT Presentation

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How I played with the wrong kids on the school yard and cofounded a - - PowerPoint PPT Presentation

Apr 07, 2023 396 likes •737 views

How I played with the wrong kids on the school yard and cofounded a tech bank By Peter Grosskopf This talk is a story about me, change and technology <3 2 Hi, Im Peter. Im a Banker! Developer, founder, creative guy Joined

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How I played with the wrong kids on the school yard and cofounded a tech bank

By Peter Grosskopf

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This talk is a story about me, change and technology <3

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Hi, I’m Peter. I’m a Banker!

Developer, founder, creative guy Joined solarisBank end of 2015 as CTO

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Traditional Bank

Slow Inflexible Hard to change course Old technology Old fashioned services High fixed costs

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Legacy Systems Mergers Lack of Innovation Waterfall Hierarchies and Silos Compliance Driven „Innovators Dilemma“

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Why do humans leave something good behind?

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„This is not the end. It is not even the beginning of the

  • end. But it is, perhaps, the

end of the beginning.“ *

* Winston Churchill

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FULL TIME EMPLOYMENT #WTF

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Bank Startup

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Need to change …

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How to found a bank?

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How to found a bank?

First: find a team Second: create a lot of paperwork to apply for a license Wait: think about a business model first

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Customers want services anytime anywhere

ACCESS 


anyone, anything, anywhere, any device

DATA & TRANSPARENCY


real-time, prediction, transparency

SOCIAL 


collaboration, sharing

CONVENIENCE 


simple, one click, innovative

PERSONAL & ADVICE 


experts, peers, friends individual & personal

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Fintechs have started to unbundle products and services traditionally offered by banks

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Deposit Payment Lending Saving Trading Customers

Trade Lending Saving Deposit Payment Factoring Mobile eMoney

Traditional banks with huge challenges ▪ Changed customer behavior ▪ Lack of innovation ▪ Bad advice & own product bias ▪ Branch based ▪ Legacy systems ▪ High fixed costs ▪ Paralysis through over-compliance etc.

Bank

Product centric Unbundling of products

FinTechs disintermediate value chain ▪ Price, information and product transparency ▪ Niche solutions in several product areas ▪ Bank accounts & aggregation ▪ Loans, savings, payments, asset management ▪ Price comparison engines, marketplaces & brokerages emerging ▪ B2B and B2C business models

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solarisBank as the first European Banking-as-a-Platform

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APIs END CUSTOMERS PARTNERS

Banking as a Platform Connects partners with the world of banking and financial services.

Digital-enabler for Banks &
 Bank-enabler for digital companies Open State-of-
 the-art APIs Fast go-to-
 market solutions Strict neutrality through B2B2X-approach Banking, payment and value-added services Customization due
 to modularity Same DNA as tech companies SUPPLIERS

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solarisBank as the first European Banking-as-a-Platform

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founded in March 2016 headquartered in Berlin received German banking license in under 10 months about 70 employees (> 50% tech) already passporting into five countries

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Modular approach fits diversity of partner business models

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solarisBank components are combinable to respond to business needs of diversified portfolio of partners: ▪ Full flexibility for Partners due to modular services ▪ Adding other / new services always possible at low cost / complexity eMoney bundle Credit bundle Accounts bundle Savings bundle Partner use case n

Accounts Trx License umbrella Risk & Lending Cards KYC processes Add-On’s, e.g.

  • Partner interface
  • 3rd Party Apps

E-money license Trx Accounts KYC Entity Electr.
 Sign. Trx Accounts KYC Entity Scoring Electr.
 Sign. Trx Accounts Brick 2 Brick 3 Brick 4 Brick 5 Brick 1 KYC Entity Electr.
 Sign. Trx Accounts

Other services

Modular services overview

Cards

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Start small and simple (early 2016)

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D E P R E

  • C

A T E D

Success Factors:

  • Ruby based
  • Monolith first
  • Domain Layer as Core Asset
  • First revenue one month

after EZB full banking license got issued

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Architecture Iteration #2

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Auth Proxy Authentication Authorization Credit Services Core Services Policy Check Partner Service Person Service Account Service Transaction Service TAN Service Ident. Service Credit 
 Service … 
 Service SSL Auth Token

Partner

Partner UID Policy Whitelist Escrow Services Policy Check Item Service Vendor Service IDnow Server SMS Server CBS Server REST JSON API Data Persistence Services IDnow API Client SMS API Client CBS 
 Client ORM Database External Services solarisBank Data Center
 InnovoCloud FinTech Systems

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Next stop: Microservices

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Event Sourcing

  • „Capture all changes to an application state as a sequence
  • f events“ (Martin Fowler)
  • Buffering, Ordering, Replay, …
  • Loosely coupled services (messages vs. RPC)
  • Fits well to our business model

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Architecture Iteration #3

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API Gateway

Partner Service Person Service Account Service Transaction Service TAN Service Ident. Service Credit 
 Service … 
 Service Authentication Service Authorization Service

Digital Banking E-Money Credits Savings

Bundles Services

Core Banking System External Services Event Sourcing / async

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„Modern“ Tech Platform

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„Modern“ Tech Platform

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Polyglot Platform Approach Ruby Elixir

Dynamic, object-oriented, interpreted language + Big knowledge base within company + Huge open source community + Easy to learn, read and understand + Great for APIs and Domain Models

  • slower in benchmarks (Interpreted)
  • Process based (horizontal) scaling

Dynamic, functional, compiled Erlang-based 
 language designed for building scalable applications + Fast and stable + Born in Ruby community + Great for concurrency + Efficiency

  • New in production

Static-ly typed compiled language invented 
 by Google to offer an alternative to C + Very fast (as C) + Small deployments + Type-safe + Many users + Used by Google ;-)

  • Great for many use case not any

Benefits of a polyglot platform approach: + Right tool for the job + Attract more developers + Adopt new trends and technologies of
 the future. Avoid monoculture

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Rollout Strategy / Deployment Setup

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GoCD Pipelines

Push code Push Image to local Registry Rollout to servers End-to-end 
 Tests

Production

Push code Build Docker 
 Image Push Image to local Registry Rollout to servers End-to-end 
 Tests

Sandbox

Push code Build Docker 
 Image Push Image to local Registry Rollout to servers End-to-end 
 Tests

Staging

Push code Build Docker 
 Image Push Image to local Registry Rollout to servers End-to-end 
 Tests

Testing

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„State-of-the-art“ Dev Organization

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Platform Services /
 Teams Vision Roadmap -> Principles

Autonomy, Mastery,
 Purpose

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Why I love what I do?

  • Huge business potential for a challenger bank
  • Enforced professionality driven by compliance and

regulation

  • Many opportunities to make things different (full

automation, „compliance as code“)

  • Big technical challenge
  • Parents love it 😄

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My learning over the years

  • Don’t reinvent the wheel in the beginning of a project
  • Build for now, prepare for later
  • Create a fast-adopting change-embracing culture
  • Embrace change. Be curious. Try new things.

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Play with other kids. You can learn from them and discover new lands

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Thank you for your attention!

Peter Grosskopf

CTO
 peter.grosskopf@solarisbank.de @peterlih