Capability·Driven
Getting started

Define your first capability.

You do not adopt the whole framework at once — you define one capability well. This page is that walk-through: the file every capability carries, the test that decides its boundaries, and a worked example you can copy.

Step 1 · The capability file

Fill in the six-part bundle

A capability file is not a paragraph of description. It is a structured bundle that forces the questions of mandate, competition, regulation, and rationale to be answered before a line is built.

1

Mandate

The statutes, regulations, policies, charters, or strategic decisions that explain why the organisation holds this capability. At least one source, always.

2

Competitive landscape

Where the organisation sits relative to others offering the same capability: table stakes, differentiators, disruptors, unbundling, rebundling, switching drivers.

3

Regulatory horizon

What is currently in force, what is coming in the next two to three years, and which enforcement signals matter.

4

Build-vs-buy

Which elements must be built in-house and which should be bought from vendors — an explicit position, not an accident of tooling.

5

Sub-capabilities

The bounded areas of responsibility that compose the capability, each carrying its own promotion test.

6

Design decisions

Architectural choices with rationale, alternatives considered, and why those alternatives were rejected. No silent deviation.

Revenue model is intentionally not part of the bundle. The capability file describes what the capability is; commercial analysis is a separate concern.

Step 2 · The promotion test

Decide each boundary with the promotion test

For every sub-capability you listed, run four boolean criteria. The count of trues decides whether it stays inside the capability or becomes one of its own.

1

Distinct participants

Does it involve actors absent from the parent's other sub-capabilities?

2

Separate regulation

Is it governed by a materially distinct body of rules?

3

Distinct lifecycle

Does it have phases of operation that appear nowhere else?

4

Independent scale

Do its demand drivers vary independently of the parent?

The prima facie rule. Each criterion is a boolean; criteria_met is the count of trues. If three or more are true, promote the sub-capability to a standalone capability. If fewer, retain it.

Overrides are permitted — a 3-of-4 may be retained, a 2-of-4 may be promoted — but the parent capability's design decisions must record the reasoning. No silent deviation.

Worked example

One capability, defined end to end

This is a real capability from a worked commercial-banking pack — Payment Operations — with two of its sub-capabilities scored against the promotion test, and the design decision that records the harder call.

CAP-003

Payment Operations

Mandate
Payment Services Regulations 2017 (SI 2017/752); the FCA's Payment Services approach; and PSR Specific Direction 17 — mandatory Confirmation of Payee. The bank holds this capability as a direct participant in the UK payment rails.
Competitive landscape
Table stakes: direct FPS, BACS and CHAPS participation, SWIFT correspondent access, card-scheme membership, Confirmation of Payee, real-time sanctions and fraud screening. Differentiator: payment-initiation APIs with ISO 20022 structured data driving 99%+ straight-through processing, plus inline FX. Disruptors: Wise, Revolut Business, and Airwallex in cross-border.
Regulatory horizon
APP-fraud mandatory reimbursement in force since October 2024. CHAPS ISO 20022 enhanced data (LEIs, purpose codes) from May 2025. SWIFT CBPR+ MT coexistence ended 22 November 2025. The RTGS Renewal (RT2) reshapes settlement underneath.
Build-vs-buy
Build in-house: the payment policy engine (sanctions lists, mandates, credit limits, fraud rules) and scheme-participation governance — these cannot be outsourced. Buy: central-infrastructure connectivity (Form3, Bottomline PTX) and card-issuing processing (GPS, Marqeta).
Sub-capabilities
International Payments — correspondent banks, SWIFT and FX desks (absent from domestic rails); FATF travel rule, UK FTR 2017 and CBPR+ ISO 20022; a lifecycle of correspondent selection, FX, nostro management and gpi tracking; demand driven by trade finance and FX, not domestic throughput.
4 / 4 → promote (CAP-003.04)
CHAPS — the Bank of England operates it under its own CHAPS Rules, but internally it shares the same capture → screen → route → settle lifecycle and the same operations team as FPS and BACS. RT2 adds compliance work, not a new boundary.
0 / 4 → retain
Design decision
DD-004. CHAPS retained despite its distinct operator and rules: from the bank's standpoint it needs no separate team or platform, so distinct external governance is not a distinct capability. Promoting it — the obvious move — was rejected. International Payments, by contrast, is promoted under DD-001.

That is one capability. Repeat for each mandate-backed function until the list is stable, then read how they all fit together.

Read the framework — the invariants every capability obeys →