Celent Model Bank 2011

Case Studies of Effective Technology Usage in Banking
by Bob Meara,  Stephen Greer, June 10, 2011
Case Studies
Global, Asia-Pacific, EMEA, Latin America, North America
Banking > Retail and Business Banking > Branch Delivery
Banking > Retail and Business Banking > Compliance and Regulatory
Banking > Retail and Business Banking > Customer Relationship Management
Banking > Retail and Business Banking > Internet Banking
Banking > Retail and Business Banking > Risk Management
Banking > Retail and Business Banking > Security and Fraud
Banking > Retail and Business Banking > Cash and ATMs
Banking > Retail and Business Banking > Checks and RDC
Banking > Retail and Business Banking > Personal Financial Management
Banking > Retail and Business Banking > Cards
Banking > Retail and Business Banking > Payment processing
Banking > Retail and Business Banking > B2B payments
Banking > Retail and Business Banking > Cash Management
Banking > Retail and Business Banking > Architecture/SOA
Banking > Retail and Business Banking > Social Media
Banking > Retail and Business Banking > Mobile Banking and Payments
Banking > Retail Banking
Banking > Corporate Banking > Cash Management
Banking > Corporate Banking > Customer Relationship Management
Banking > Corporate Banking > Internet Banking
Banking > Corporate Banking > Regulation
Banking > Corporate Banking > Risk Management
Banking > Corporate Banking > Branch Delivery
Banking > Corporate Banking > Cash and ATMs
Banking > Corporate Banking > Checks and RDC
Banking > Corporate Banking > Mobile Banking and Payments
Banking > Corporate Banking > Personal Financial Management
Banking > Corporate Banking > Cards
Banking > Corporate Banking > Payment processing
Banking > Corporate Banking > B2B payments
Banking > Corporate Banking > Architecture/SOA
Banking > Corporate Banking > Security and Fraud
Banking > Corporate Banking > Social Media

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 Bob Meara, 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, customer service/support, security, and risk management."

"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 Stephen Greer, 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 2011:

  • American Savings Bank: Technology Optimization Initiative
  • Bank of the West: Retail Operating Model Reengineering
  • Citibank: Citi Prepaid
  • Enterprise Bank: Merchant Capture
  • Extraco Bank: Swarm Banking
  • Hana Bank: Smartphone Banking Initiative
  • HDFC Bank: Multichannel Integration
  • JPMorgan Chase: Virtual Remit
  • JPMorgan Chase: US Dollar Clearing - Asia Direct
  • Kennebunk Savings Bank: Business Process Manager
  • Lagoon Home Savings & Loans: Core Migration
  • Metro Bank: Love your Bank at Last
  • Scotiabank: Mobile Banking Initiative
  • TS Bank: Core Banking Initiative
  • UMB Bank: Branch Workforce Management
  • Union Savings Bank: Surveillance Initiative
  • Wegagen Bank: Core Initiative
  • Wells Fargo: ATM Cash Tracker

Each of the Model Banks will be presented with awards at Celent Innovation and Insight Day. The event will be held on June 16, 2011. To learn more about the event and to register, please visit http://celentbanking.eventbrite.com.

Celent will be gathering cases for the 2012 report throughout the year. Banks may nominate themselves for the 2012 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

6

Infrastructure and Architecture

9

 

American Savings Bank: Technology Optimization Initiative

10

 

TS Bank: Core Banking Initiative

13

Product Development

16

 

Citibank: Citi Prepaid

18

 

Hana Bank: Smartphone Banking

20

 

JPMorgan: Virtual Remit

24

 

Wells Fargo: ATM Cash Tracker

27

Marketing / Sales / Customer Service

31

 

Bank of the West: Retain Operating Model Reengineering

34

 

Enterprise Bank: Merchant Capture

37

 

Kennebunk Savings Bank: Business Process Manager

40

 

Metro Bank: Love Your Bank at Last

43

Distribution / Channel Management

49

 

Extraco Banks: Swarm Banking

51

 

HDFC Bank: Multichannel Integration

55

 

Scotiabank: Mobile Banking

57

 

UMB Bank: Branch Workforce Management

60

Transaction Processing

63

 

JPMorgan: US Dollar Clearing–Asia Direct

65

 

Lagoon Home Savings & Loans: Core Migration

67

 

Wegagen Bank: Core Initiative

69

Security and Risk Management

72

 

Union Savings Bank: Surveillance Initiative

73

Conclusion

76

Leveraging Celent’s Expertise

77

 

Support for Financial Institutions

77

 

Support for Vendors

77

Related Celent Research

78

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