Model Bank 2013: Case Studies of Effective Technology Usage in Banking

by Stephen Greer,  Bob Meara, February 27, 2013
Case Studies
Global

Abstract

The sixth annual edition of Celent’s Model Bank awards celebrates 20 compelling examples of effective technology usage in banking and names one Model Bank of the Year.

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.

“Innovation abounds in banking,” says Bob Meara, Senior Analyst with Celent’s Banking Group and coauthor of the report. “With more Model Bank nominations than in any previous year, Celent’s challenge was to choose the most compelling examples of effective technology use in banking.”

“Many initiatives are extremely compelling based solely on their excellence in integrating and implementing complex technological pieces,” adds Stephen Greer, Analyst with Celent’s Banking Group and coauthor of the report. “Obviously, the innovation has to be there, and the success metrics must be exemplary, but complex projects offer compelling insights into best practices in areas that are applicable to institutions and projects of all almost any kind.”

This year, there is a new award category, Celent’s Impact Award, honoring projects that were noteworthy not only for their innovation but also for their simplicity. Impact Awards honor projects that are comparatively easy, low cost, and offer a considerable boon to business outcomes. With these outcomes, Celent asks, “Why isn’t everyone doing this?”

This report examines each of the following institutions and projects:

  • ABSA Bank: Value Bundles
  • ACLEDA Bank: Mobile banking initiative
  • BBVA Compass: Core banking transformation
  • BMO: Online appointment booking
  • Capital One: Mobile 2.0 with rewards redemption
  • Citibank: Citi Payments Analytics initiative
  • Commonwealth Bank: “Right People, Right Place, Right Time” Initiative
  • Ecobank: Unified transaction banking solution
  • Hana Bank: Cyber Hana Bank
  • HSBC: Global Payments Investigations platform
  • ICICI Bank: Next Generation Banking solution
  • JPMorgan Chase: Trusted Advisor Analytics initiative
  • JPMorgan Chase: Mobile RDC for corporate clients
  • Kotak Mahindra Bank: Flexcube to Finacle Replacement
  • RCBC: Core banking migration
  • Regions Bank: NOW Banking initiative
  • Taishin Bank: Integrated Risk and Marketing Analytics Department
  • US Bank: Online marketing and lead management platform
  • University Federal Credit Union: Branch transformation initiative
  • Vietnam Prosperity Bank: New core lending system

This 96-page report contains 38 figures and 27 tables.

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)
Tylor Tourville
ttourville@celent.com
Tel.: +1 617 424 3284

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

1

Introduction

3

 

Summary of Model Bank Components

4

Infrastructure and Architecture

7

 

BBVA Compass: Real Time Core Migration

8

 

Kotak Mahindra Bank: Core Migration

12

Product Development

17

 

Capital One: Mobile 2.0 Rewards Redemption

18

 

Citibank: Payments Analytics

21

Marketing and Sales

25

 

Regions Bank: Now Banking

26

 

Taishin International Bank: Information Based Decision Support

29

 

US Bank: Online Marketing and Lead Management Platform

34

Customer Service and Support

38

 

HSBC: Global Payments Investigations

39

 

ICICI Bank: Next Generation Banking

42

 

J.P. Morgan: Go Green and Fraud Analytics

46

Distribution / Channel Management

50

 

ACLEDA Bank: Unity Mobile Wallet

51

 

University Federal Credit Union: Branch Transformation

55

Transaction Processing

59

 

ABSA Bank: Value Bundle

60

 

Ecobank: Transaction Banking Platform

63

 

RCBC: Project Destiny

66

Loan Processing

70

 

Hana Bank: Cyber Bank

71

 

Vietnam Prosperity Bank: Loan Processing

74

Celent Impact Awards

77

 

BMO Financial Group: Online Appointment Booking

77

 

Commonwealth Bank: “Right People, Right Place, Right Time”

81

 

J.P. Morgan: Corporate Mobile Deposits

85

Conclusion

89

Leveraging Celent’s Expertise

90

Related Celent Research

91

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