Celent Model Bank 2015, Part 4: Case Studies of Legacy and Ecosystem Transformation in Banking

by Gareth Lodge,  James O'Neill, March 23, 2015
Case Studies
Global

Abstract

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:

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.

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 a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

4

 

Summary of Model Bank Components

5

Legacy and Ecosystem Transformation

9

Case Studies in Legacy and Ecosystem Transformation

11

 

BNY Mellon: Global Payments Platform Initiative

12

 

Discover Financial Services: End-to-End Transformation

18

 

ING Vysya Bank Ltd.

24

 

Summary

30

Conclusion

31

Leveraging Celent’s Expertise

33

 

Support for Financial Institutions

33

 

Support for Vendors

33

Related Celent Research

34

Sign in to download reports and access personalized information