Service delivery optimization in banking and capital markets

Meeting new customer expectations and competitive threats

Banking institutions today need to be able to quickly deliver easy-to-use, highly tailored services to address shifting consumer preferences and differentiate themselves from competitors—all while maintaining high levels of quality and efficient operations. As financial services organizations go mainstream with modern technologies, service delivery optimization is no longer an option; it’s a requirement.

Most banks still rely on outdated systems and architectures that were not designed to support the core banking capabilities and services of the future. With pressure to reduce costs and risk, many banks are reluctant to invest in improving service delivery capabilities. But these investments are worthwhile—and arguably inevitable—enabling banks to deliver services at a faster rate and meet the ever-changing needs of the customer.

Nontraditional banks are poised to offer banking services with strong consumer appeal that could capture a large share of the Millennial market. Finally, frequent changes in regulatory guidelines and market factors are forcing banks to rethink value chains and develop more componentized operating models.

Key considerations for service delivery optimization

How do banks deliver software and products faster? Through this paper we plan to explore recommended approaches and strategies to do so by transforming an organization’s operations and adopting Agile or DevOps. We will present an outline of a step-by-step process for any bank to undergo this journey while also highlighting key factors for a successful transformation.

Before undergoing a transformation of this scale, there are several considerations and actions that need to be accounted for as part of preparing for the transformation:

• Understand why you need to transform? Consider forces in the market driving change, like “Lower barriers to entry”
• Determine what should you transform to? Consider changing the way you work to align with key principles such as being “Customer-focused and Outcome-driven”
• How do you transform? By defining focus areas to impact, like iterating and collaborating in solution and process design, development, delivery, and operation
• What is the plan to execute? By enabling teams with tools, training, and data and driving the transformation top-down through appropriate leadership engagement

Keys to successful transformation

A key facet to delivering this transformation is a need to reorganize IT for faster software/product delivery; to achieve this desired end goal, programs are structured with enablers (to drive service delivery optimization), coupled with broader transformation capabilities.

In our experience, there are four enablers and four capabilities that have been critical for success across any such transformation. The enablers are key tenets for delivery transformation, focused on: Agile, DevOps, Enterprise Architecture (EA) Transformation, and Workforce Modernization.

Secondary capabilities which support the overall transformation are: API, Cloud, Enterprise Data, and Process Automation.