Banks
quick on the technology uptake but slow on regular
and uniform upgrade, are stuck with outdated technology
today. Functional richness built into their existing
solutions is preventing them from taking a risky
technology leap. |
 |
Old
and inappropriate technology is keeping their operational
expenses high, controls weak, compliances lacking,
and service offerings anachronous. |
Banks as custodians of people’s money and trust,
need to exercise extreme caution during technology, solutions
and process upgrades. When the initiative is as significant
as replacing a Branch Automation System with a Centralized
Core Banking System, there is nothing like being overcautious,
as success or failure of this migration directly affects
bank’s survival.
Increasing competition is making it difficult for them
to survive profitably without upgrading their delivery
mechanism.
On the face of it, moving from Branch Automation to Core
Banking appears to be a mere technical process, as it
radically changes the existing topology of bank’s
information systems. However, considering that it influences
how and what business is conducted after migration, it
becomes more of a business driven process rather than
a technology centric one. This shift in perspective increases
the worth, and correspondingly, the risk of this implementation.
Add to it the fact that the experience and expertise needed
for such a critical task is usually missing inside the
bank, as this is a once in a lifetime situation for the
bank, and now the picture looks even more bleak.
Core Banking Migration Challenges
Listed below are some of the common questions banks considering
moving to Core Banking solution, irrespective of their
size and category, need to answer
Why Core Banking (Justification)
 Advantages
Compulsions
What Is Core Banking (Concept)
Data
Centralization
Front
& Back-office Separation
Online
Decision Making
What Cost Core Banking (Costing)
Initial
Cost
Ongoing
Gross Cost
Ongoing
Benefits
Ongoing
Net Cost
When Core Banking (Timing)
Funds
Readiness
Team
Readiness
Legacy
Systems Readiness
Which Core Banking (Selection)
Technology
Fitment
Functionality
Fitment
Budgetary
Fitment
How Core Banking (Process)
Software
Selection
Infrastructure
Selection
Pre-Implementation
Planning
Implementation
Process
Post-Implementation
Responsibility
Matrix
Abhyarth’s Contribution
Abhyarth can provide these answers to banks as they near
this difficult transition. We not only have an in-depth
understanding of this implementation process, but also
have actual experience of integrating old age / legacy
distributed and core banking systems with current technology
delivery channels, and also with inter-bank networks,
while keeping the overall transition risk low.
The process of Core Banking Implementation broadly consists
of three phases, including the specific tasks mentioned
below. Abhyarth’s help is available to banks throughout
this transition.
• Pre-Migration Assistance
• Establish Business Case for Core Banking
• Set Bank’s Expectations from this Change
• Build ROI Calculation Framework
• Prepare Budget and Schedule
• Ensure correct Hardware / Network Sizing
• Perform Reference Checks
• Select Solution/s
• Migration Phase Assistance
• Set Direction, Goals and Milestones
• Ensure Actual results follow the Planned ones
• Identify, Check and Act on Deviations
• Post-Migration Assistance
• Setup Support Processes
• Draft Legal Agreements
• IT Spend Optimization / Roadmap preparation and
maintenance
To discuss how these services can help you in your specific
situations, please contact us
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