Celent Model Bank 2008: Case Studies of Effective Technology Usage in Banking

by Jacob Jegher, March 6, 2008

Abstract

New York, NY, USA March 6, 2008

Celent Model Bank 2008:  Case Studies of Effective Technology Usage in Banking

Celent's inaugural "Model Bank" report recognizes 18 bank technology initiatives as "Model Bank Components."

The vision for Celent's Model Bank research was to try to answer an apparently simple question: "What would it look like for a bank to do everything right with today's technology?" Of course, the question is not nearly as simple as it appears. The terms "everything" and "right" mean very different things to different banks depending on their size, the complexity of their operations and product sets, and their technological starting points.

"Our approach was to offer, at a high level, some key best practices in the usage of technology that a 'model bank' would use," says Jacob Jegher, senior analyst with Celent's Banking Group and author of the report. These examples span the spectrum from infrastructure and architecture to product development, marketing/sales, distribution/channel management, transaction processing, loan processing, customer service/support, and security and risk management. "Of course, there is no such thing as a single Model Bank--every bank does some things well, and others not as well when it comes to technology.

So we set out to gather as many real world examples of effective usage of technology as possible. These case studies are presented as components of a theoretical model bank's IT systems and practices," Jegher adds. Although brief (averaging 200 words), nearly all of the 18 model bank component case studies include detailed descriptions of business drivers, technology environments, and quantitative success metrics. Selected initiatives include:

  • Bancorp South: Front-line pricing discipline for commercial lending
  • Bank of New York Mellon: Flexible Accounting Platform
  • Bremer Bank: Retail online banking platform
  • Citi: Identity Management Services
  • Fifth Third Bancorp: Automation of wire transfer initiation
  • Fortis Bank: Global payments processing platform
  • JPMorgan Chase: Portable Security Transaction Protocol (PSTP)
  • M&I Bank: Automation of business and commercial lending
  • National City Bank: SOA development and delivery
  • National City Bank: Rewards/Loyalty program
  • Pacific Trust Bank: Transactional mortgage account
  • SEB Unibanka: Multichannel customer service management
  • Taishin International Bank: Core banking systems replacement
  • TD Canada Trust: Modernization and outsourcing of ABM infrastructure and operations
  • Washington Mutual: Online new account opening
  • Wells Fargo: Mobile banking
  • Zions Bank: Multifactor Authentication
  • Zions Bank: Remote deposit capture

Celent plans to make this an annual report and event and will be gathering cases for the 2009 report throughout the year. Nominations for the 2009 report will be accepted throughout the year and may be submitted by banks or their software vendor partners. For more information, go to http://www.celent.com/modelbank.htm.  

The report is 32 pages. A table of contents is available online.

Members of Celent's Retail Banking and Wholesale Banking research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.  

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

New York, NY, USA March 6, 2008

Celent Model Bank 2008:  Case Studies of Effective Technology Usage in Banking

 

Executive Summary 04
Introduction 07
Summary of Model Bank Components 14
Infrastructure and Architecture 12
Product Development 14
Marketing/Sales 17
Distribution / Channel Management 19
Transaction Processing 23
Loan Processing 26
Customer Service / Support 28
Security and Risk Management 30
Conclusion 33

 

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