The vision for Celent’s Model Bank research, now in its eighth year, is to spotlight effective uses of technology in banking. The approach that Celent takes is to seek examples of best practices in technology usage which, in aggregate, would answer these three questions.
These examples span a five-part report series:
- Part 1: Digital Banking
- Part 2: Omnichannel Banking
- Part 3: Innovation and Emerging Technology
- Part 4: Legacy and Ecosystem Transformation
- Part 5: Payments Innovation
In Part 4, Celent profiles three innovative initiatives in Legacy and Ecosystem Transformation:
- BNY Mellon: Global Payments Platform Initiative
- Discover Financial Services: End-to-End Banking Transformation
- ING Vysya Bank Ltd: Core Banking and Data Services Modernization
For all three of this year’s Model Bank Award winners in the Legacy and Ecosystem Transformation category, the planned benefits of legacy and ecosystem transformation was not limited to reducing the complexity and expense of maintaining older systems — indeed, cost efficiencies were merely table stakes in the transformation process. Rather, each of the three winning projects focused on extending organizational capabilities while unshackling them from the limitations of their older technologies in the area of product development.
“The remarkable part of this year’s Model Bank Awards was the geographic and organizational diversity of the participating financial institutions,” says Gareth Lodge, a senior analyst with Celent’s Banking practice and coauthor of the report. “For these institutions, legacy system transformation is not viewed simply as a cost and efficiency play, but something that drives future organizational agility and service innovation.”
“For all of this year’s award winners, the decision to embark on these ambitious banking platform transformation projects represents their belief that modern and flexible technology is the fabric from which innovation and world-class service in banking is sewn,” says Jim O’Neill, a senior analyst with Celent’s Banking practice and coauthor of the report.
Nominations were accepted in late 2014, and the Celent Banking team selected winners based on degree of innovation, degree of difficulty, and business benefits provided. Each Model Bank winning initiative is presented as a detailed case study within the report, including detailed descriptions of business drivers, technology environments, and quantitative success metrics. Lessons learned are proposed at the end of the report.
This 38-page report contains three Celent Model Bank case studies, four tables, and seven figures.
