Celent Model Bank 2010: Case Studies of Effective Technology Usage in Banking

by Jacob Jegher, May 10, 2010
Case Studies
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Celent’s Model Bank report recognizes 18 bank technology initiatives as Model Bank Components.

The vision for Celent’s Model Bank research was to try to answer an apparently simple question: “What would it look like for a bank to do everything right with today’s technology?” Of course, the question is not nearly as simple as it appears. The terms “everything” and “right” mean very different things to different banks depending on their size, the complexity of their operations and product sets, and their technological starting points.

“Our approach was to offer, at a high level, some key best practices in the usage of technology that a ‘model bank’ would use,” says Jacob Jegher, Senior Analyst with Celent’s Banking Group and coauthor of the report. “These examples span the spectrum from infrastructure and architecture to product development, marketing/sales, distribution/channel management, transaction processing, loan processing, customer service/support, security and risk management, and healthcare banking.”

“Of course, there is no such thing as a single Model Bank—every bank does some things well, and others not as well when it comes to technology. So we set out to gather as many real world examples of effective usage of technology as possible. These case studies are presented as components of a theoretical model bank’s IT systems and practices,” says Rajesh M R, Celent Analyst and coauthor of the report.

Although brief, nearly all of the 18 model bank component case studies include detailed descriptions of business drivers, technology environments, and quantitative success metrics.

Model Bank Components 2010

  • ABN AMRO Bank: Credit Proposals and Security Documentation Solution
  • Bank of America Merrill Lynch: Online Corporate Cash Management Solution
  • Citi: Treasury Diagnostics
  • Citi: Online Corporate Cash Management Solution
  • Fifth Third Bank: Remote Cash Capture Solution
  • HDFC Bank Ltd.: Loan Origination System
  • ICICI Bank: Automation of the Cash Deposit Process
  • Jibun Bank: Mobile Banking
  • JPMorgan Chase: Computer Registration Solution
  • National Savings and Investments: Systems Modernization
  • Northway Bank: Sales Effectiveness Solution
  • Rabobank, N.A.: Online Banking and Bill Payment
  • Star One Credit Union: Tax Filing via Online Banking
  • Swedbank AB: B2B e-Invoicing Solution
  • Umpqua Bank: Interactive In-Store Digital Displays
  • UMB Bank, n.a.: Integrated Claims Reimbursements Portal
  • United Bank Limited Pakistan: Anti-Money Laundering Solution
  • Webster Bank: Teller Automation Solution

Each of the Model Banks will be presented with awards at Celent Innovation and Insight Day. The event will be held on May 13, 2010 at the Westin Times Square in New York City. To learn more about the event and to register, please visit http://www.celent.com/124_2855.htm.

Celent will be gathering cases for the 2011 report throughout the year. Banks may nominate themselves for the 2011 report at www.celentmodelbank.com.

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 part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Erica Ferguson
eferguson@celent.com
Tel.: +1 617 262 8225

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

3

Introduction

5

Summary of Model Bank Components

7

Infrastructure and Architecture

8

Product Development

11

Marketing / Sales / Customer Service

14

Distribution / Channel Management

19

Transaction Processing

26

Loan Processing

30

Security and Risk Management

34

Healthcare Banking

38

Conclusion

41

Leveraging Celent’s Expertise

42

 

Support for Financial Institutions

42

 

Support for Vendors

42

Related Celent Research

43

Sign in to download reports and access personalized information