New Deloitte white paper examines core banking transformation has been saved
New Deloitte white paper examines core banking transformation
27 March, 2017— As banks seek to be more competitive and enhance customer experiences, many look to transform their old legacy banking systems with more agile and efficient new core solutions. Such a banking transformation though brings a number of challenges and risks, rendering the role of a system integrator crucial. This subject is explored in depth in a new Deloitte white paper, titled: Leading the journey: Engaging a system integrator to orchestrate your banking transformation.
“Core banking transformation is often compared to open heart surgery, because of the significant business disruption that takes place during the implementation or deployment stages,” said Khaled Hilmi, Partner and Consulting Financial Services Industry Leader for Deloitte in the Middle East. “It often results in complex projects involving multiple stakeholders and this is where a system integrator would be crucial to coordinate all stakeholders, thereby minimizing the disruption, challenges and risks.”
The white paper sets out to define the role of the system integrator (SI) in core banking implementation and highlight the key SI capabilities that are used to address the challenges faced during core banking implementation. Additionally, the paper introduces a set of selection criteria to guide decision-makers in selecting the right SI and provides insights into how to proactively manage the risks of a core transformation.
Core banking transformation is driven by a bank’s need to respond to internal business initiatives that foster growth and efficiency, or as a response to external drivers, such as regulation, competition or customers’ needs. Banks have been generally reluctant to undertake such an initiative due to the high risks involved, although in recent years, many banks are investing more in customer service, product innovation and regulatory change. At the same time, over the last decade, core banking technology has rapidly advanced to become enterprise-wide systems covering multiple banking products and functional areas. The focus on the convergence of digital channels along with increases in scalability and flexibility has enabled real-time channel processing and multichannel integration capabilities that have helped grow the global banking sector. All of these factors have played a role in driving the need for core banking transformation.
Ridhwaan Saloojee, Consulting Director at Deloitte in the Middle East, said, “An SI is a partner in the transformation journey and is an integral part of the transformation program. Their role is to manage the program’s implementation and to design and implement the future state of the business.” Banks considering such an undertaking should note that, according to the Deloitte white paper, the path to a successful transformation starts well in advance of any solution development. “Experienced systems integrators understand the challenge such transformations have and can identify an inclusive methodology to effectively manage risks early on,” concluded Hilmi.
To view the whole report, go to: http://bit.ly/2n8yDUW
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About Deloitte & Touche (M.E.):
Deloitte & Touche (M.E.) is a member firm of Deloitte Touche Tohmatsu Limited (DTTL) and is a leading professional services firm established in the Middle East region with uninterrupted presence since 1926.
Deloitte provides audit, tax, consulting, and financial advisory services through 26 offices in 15 countries with more than 3,300 partners, directors and staff. It is a Tier 1 Tax advisor in the GCC region since 2010 (according to the International Tax Review World Tax Rankings). It has also received numerous awards in the last few years which include best employer in the Middle East, best consulting firm, the Middle East Training & Development Excellence Award by the Institute of Chartered Accountants in England and Wales (ICAEW), as well as the best CSR integrated organization.