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 A Tale of One
City: Core Renewal via SOA at National City Bank, 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.
