Celent Model Bank 2012: Case Studies of Effective Technology Usage in Banking

by Bob Meara,  Stephen Greer, June 13, 2012
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Celent’s Model Bank report recognizes 21 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 21 model bank component case studies include detailed descriptions of business drivers, technology environments, and quantitative success metrics.

Model Bank Components 2012

  • ABSA Bank: Mobile Banking Initiative
  • Bank of America Merrill Lynch: Payment Services Hub
  • Bank of Montreal: Online Banking for Business
  • Citibank: Global Commercial Card Platform
  • Coastal Federal Credit Union: Personal Teller Machines
  • DBS Bank: Emerging Markets and Overseas Countries (EMOC) Core Migration
  • Emirates NBD: Core Transformation
  • Fifth Third Bank: Remote Currency Manager
  • HDFC Bank: CRM Initiative
  • Huntington National Bank: iPad Sales Tool: “Selling Technology with Technology”
  • ICICI Bank: Account Portability
  • Rakuten Bank: Happy Program Customer Loyalty Initiative
  • Redstone Federal Credit Union: Core Development Using DNAcreator
  • RHB Bank Berhad: Easy by RHB  - Celent 2012 Model Bank of the Year
  • Standard Chartered Bank: Breeze Living
  • Taishin Bank: Transaction Analytics
  • Taishin Bank: Unified Facility and Risk Management System
  • US Bank: Online Platform Transformation
  • USAA Bank: Easy Deposit
  • YES Bank: Insights 2 Engage
  • YES Bank: Governance, Risk and Compliance Competency Framework

For the first time, Celent chose to honor a single Model Bank with the distinction of Model Bank of the Year. For 2012, this distinction belongs to RHB Bank Berhad, headquartered in Kuala Lumpur, Malaysia, for its Easy by RHB branch transformation initiative. A detailed case study of the Easy by RHB initiative will be published separately.

Celent will be gathering cases for the 2013 awards throughout the year. Banks may nominate themselves for the 2013 awards 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

6

 

Summary of Model Bank Components

7

Infrastructure and Architecture

11

 

Citibank: Global Commercial Card Platform

13

 

Emirates NBD: Core Transformation

15

 

Redstone Federal Credit Union: Core Development Using the DNAcreator

18

Product Development

23

 

Bank of America Merrill Lynch: Payment Services Hub

24

 

Bank of Montreal: Online Banking for Business

28

 

Fifth Third Bank: Remote Currency Manager

32

 

USAA; Easy Deposit Initiative

36

Marketing / Sales / Customer Service

41

 

Huntington Bank: iPad Sales Tool: “Selling Technology with Technology”

44

 

HFDC Bank: CRM Initiative

48

 

ICICI Bank: Account Portability

52

 

Rakuten Bank: Happy Program Loyalty Initiative

56

 

Standard Chartered: Breeze Living

59

 

YES Bank: Insights 2 Engage

63

Distribution / Channel Management

67

 

Absa Bank: Mobile Banking

69

 

Coastal Federal Credit Union: Personal Teller Machines

71

 

RHB Bank Berhad: Easy by RHB

79

 

US Bank: Online Platform Transformation

86

Transaction Processing

90

 

DBS Bank: Emerging Markets and Overseas Countries (EMOC) Core Migration

92

 

Taishin International Bank: Transaction Analysis

93

Security and Risk Management

102

 

Taishin International Bank; Unified Facility and Risk Management System

103

 

YES Bank: Governance, Risk and Compliance Competency Framework

107

Conclusion

111

Leveraging Celent’s Expertise

113

 

Support for Financial Institutions

113

 

Support for Vendors

113

Related Celent Research

114

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