Celent Model Bank 2016, Part VII: Case Studies in Legacy Transformation

by James O'Neill, April 13, 2016
Case Studies
Global

Abstract

The vision for Celent’s Model Bank research, now in its ninth year, is to spotlight effective uses of technology in banking. The approach that Celent takes is to seek examples of best practices in technology usage which, in aggregate, would answer three questions below.

Every year we suggest five to eight categories and invite banks to nominate their technology initiatives. We review all nominations and recognize a number of them — up to four per category — with a Model Bank award.

In 2016, Celent accepted nominations in seven categories and awarded 18 initiatives. The case studies of winning initiatives are profiled in a seven part report series published today:

  1. Digital Banking Transformation
  2. Omnichannel Banking
  3. Digital Payments and Cards
  4. Corporate Payments and Infrastructure Modernization
  5. Cash Management and Trade Finance
  6. Security, Fraud, and Risk Management
  7. Legacy and Ecosystem Transformation

In Part 7, Celent profiles three award-winning initiatives in legacy system transformation.

  • Sberbank:  Centralization 2.0
  • Umpqua Bank:  CrossBank Service Platform
  • Vietnam Bank for Social Progress: The Mobile Branch

Legacy and ecosystem transformation is one of the most challenging aspects of a bank CIO’s agenda. The banking ecosystem of most large banks today is a mélange of the old and the new, with robust but inflexible legacy core banking systems (CBS) overlaid with retail and business product delivery systems of every vintage and variety.  Some delivery systems like branch and teller quality for pension benefits, while others like mobile banking and NFC payments have arrived on the scene as the freshly scrubbed cadets of bank customer service delivery.

“Today’s bank CIO faces a cacophony of demands from bank marketing departments, line of business executives, and risk management personnel seeing greater access to the insights and lessons to be learned from data that is bound up in the bank’s legacy processing systems,” says James M. O’Neill, Senior Analyst with Celent’s Banking Group and author of the report.  “As each business unit seeks to gain actionable insights through the emerging science of data analysis, they often come to realize that the lack of openness of their CBS platform is a major inhibitor.”

Nominations for Model Bank awards were accepted in late 2015. The Celent Banking team selected winners based on business benefits, degree of innovation, and technology or implementation excellence. Each Model Bank winning initiative is presented as a detailed case study within the report, including descriptions of business drivers, solutions, success metrics, and future plans.

This 32-page report contains three Celent Model Bank case studies, six tables, and eleven figures.

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

Executive Summary

1

 

Key Research Questions

1

Introduction

4

 

Model Bank Overview

4

 

Summary of Model Bank Award Winning Initiatives

6

Key Themes in Legacy Transformation

10

Case Studies in Legacy Transformation

11

 

Sberbank: A Federated CBS Platform

11

 

Umpqua Bank: The CrossBank Service Platform

16

 

Vietnam Bank for Social Policies: The Mobile Branch

21

Conclusion

26

Leveraging Celent’s Expertise

27

 

Support for Financial Institutions

27

 

Support for Vendors

27

Related Celent Research

28

Sign in to download reports and access personalized information