Banking – Core Banking Systems Strategy

Frazer Walker helped this customer focused Mutual Bank to undertake its strategic core banking system review to meets the organisation’s long-term business needs as part of the broader IT Strategy and Enterprise Architecture

A key initiative identified in the Bank’s Information Technology Strategic Plan was to undertake a core banking system review, to ensure that the core banking platform meets the organisation’s long-term business needs and aligns with the design of the agreed overall Target Enterprise Architecture

The Challenge

Since implementing their core banking platform in 2004, the Bank had more than doubled in size, and given the pace of digital disruption, required an architecture capable of sustainably supporting future growth, customer needs and digital integration

Part of the challenge was recognition that changing core banking platforms is one of the highest technological cost, risk and complex programs that a bank can undertake requiring significant capital, time, resource investment, careful planning, solid risk management and a dedicated team to effect the change successfully

Our Work

As part of Frazer Walker’s IT Strategic Adviser role to the bank and our independence to all IT vendors, we were engaged to run the market evaluation process and prepare recommendations on the alternate options available to the bank, to achieve their customer focused growth strategy

The Outcome

Frazer Walker successfully produced a comprehensive investigative report into what it would mean for the Bank to transition it’s core banking platforms. This included a thorough analysis of costs, risks, benefits, critical success factors and lessons learned from other banks and vendors who have previously completed a program of this nature. This enabled the Bank to understand the challenges that it would face if there was a decision to change core banking platforms

To achieve the client’s goals, Frazer Walker:

• Facilitated discussions with other banks and key vendors
• Researched contemporary practices on core banking technology transformations
• Determined the potential costs, time, effort and risks for the client if they did transition core banking platforms
• Produced a comprehensive investigative report with insights gleamed from other organisations who have completed a core banking transition
• Included suggestions the client could take to de-risk the program:
  • Risk mitigation prior to and during transition
  • Adopting critical success factors to improve the success rate
  • Presenting alternative methods to transition core banking platforms that take advantage of changing technology options to lower costs and risks other than traditional approaches (for example Software as a Service (SaaS).

Contact

For more information please contact Ian Chisholm, Phone: +61 401 316 004, Email: ian.chisholm@frazerwalker.com