PwC, AWS, and Engine by Starling: A digital transformation in banking (COP216)

Here is the detailed summary of the video transcription in markdown format, broken down into sections:

Introducing Engine and PWC Collaboration

  • Nicola Quincy from PWC is responsible for the AWS Alliance across Europe, Middle East, and Africa.
  • Sam Everington, the CEO of Engine, joined Starling Bank 8.5 years ago as a software engineer and then took on the leadership role when the technology company was separated from the bank 2.5 years ago.
  • Steve Davis, a partner at PWC, builds digital banks.

The Landscape of Traditional Banking

  • Traditional banking systems, built 20-30-40 years ago, are difficult to replace due to the complexity of "Core Banking Software".
  • Many bank executives have tried to replace their core systems, but often failed.
  • This has created a "graveyard for Consultants and Software Engineers".
  • However, the landscape has changed dramatically in the last few years with the advent of Cloud, Open Banking, and APIs.
  • Starling Bank was born in this new environment, helping to reinvent banking.

Introducing Engine

  • Engine is the software solution developed by Starling Bank to run a digital bank.
  • It includes all the technology needed to run a digital banking proposition, from onboarding and origination to core systems, payment processing, and customer service.
  • Engine was built to be cloud-native, real-time, and event-based, unlike traditional banking systems.

Key Differences of Engine

  • The user experience is rich and allows customers to create their own curated experience and proposition.
  • The data model is customer-centric, unlike traditional bank systems that are product-centric.
  • Accounts don't contain money or account details; instead, they use a "spaces" identifier data structure, enabling features like personalized savings and virtual cards for children.
  • The "Management Portal" is the key differentiator, providing everything needed to run a bank in one place, enabling a different operating model.

Technical Principles of Engine

  • 24/7 availability is a top priority, with multiple daily releases during business hours.
  • The system is built with a presumption of failure, with automatic recovery and resilience testing.
  • The tight integration between engineering and the business allows for rapid iteration and innovation.

Architectural Principles

  • Engine runs entirely on AWS, leveraging cloud-native services and infrastructure.
  • The use of AWS allows for scalability, performance, and resilience, with the ability to exit any material provider if needed.
  • Integrating with payment schemes and external systems still requires some physical infrastructure, but the majority of the platform is cloud-based.

Real-World Examples

  • Starling Bank, a successful digital bank in the UK, has demonstrated the viability of Engine's economic model, with high customer satisfaction and profitability.
  • Salt Bank, in Romania, replicated Starling's model using Engine, going live in under 12 months.
  • AMP, a financial services group in Australia, is also using Engine to drive growth in their business banking segment.

Future Developments

  • Engine is focused on addressing the core problems of traditional banking systems, enabling the deployment of more advanced technologies like generative AI.
  • The platform provides a foundation for banks to innovate and improve both the customer and employee experiences.

Conclusion

  • Interested parties can learn more by visiting the PWC stand at the event or contacting the Engine team directly.
  • The collaboration between Engine and AWS has been instrumental in the platform's development and success.

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