A Tale of One City: Core Renewal via SOA at National City Bank
AbstractSan Francisco, CA, USA December 12, 2007
National City Bank has employed SOA to successfully modernize its core banking system by providing cross-LOB relationship pricing. The bank found that a new level of profitability and growth could be achieved by understanding the value of the customer.
SOA is one of the more frequently heard, but rarely understood terms in the IT community. In a new report , Celent examines service-oriented archiecture's use in integrating disparate systems. National City has developed a new, customer-centric business model to drive organic growth. The company used SOA to enable the transition of the bank's core architecture from traditional silos based upon lines of business to one that enables flexibility across products. It is grounded in the bank's ability to understand the present and potential value of the customer.
National City faced the business challenges of a mature market and increasing pressure on NIM. The bank successfully took a proactive approach in addressing those challenges, bringing in IBM Global Services and its Component Business Model to conclude that Customer Management Objectives and relationship pricing would drive the bank to the next level of profitability and growth.
"National City Bank redesigned their IT organization, their infrastructure, and their approach toward the bank's retail business," says Bart Narter, author of the report and senior analyst with Celent's banking group. "The accomplishment of such a dramatic realignment in both LOBs and IT reflects the maturity and flexibility of the entire organization."
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 firstname.lastname@example.org 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 subsidiary of Marsh & McLennan Companies [NYSE: MMC].
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Table of ContentsSan Francisco, CA, USA December 12, 2007
|The Business Need||04|
|The IT Response||04|
|Background: SOA Isn't a What, It's a Way||05|
|Definition of SOA||05|
|SOA Drivers At National City||05|
|A Tale of One City||09|
|The Business Need||09|
|The IT Response||10|
|IBM's Component Business Model||11|
|Options for the Core||13|
|Urban Renewal Projects||14|
|IT Department Remodel||16|
|Funding the Renewal: National City's Enterprise Line of credit||19|
|Taking SOA to the Front Line||19|
|Points from National City||19|
|CMO to Relationship Pricing||20|
|Linking CRM Systems: InterACT and InterLink||22|
|Electronic Funds Transfer (EFT)||24|