Celent Model Bank 2016, Part I: Case Studies in Digital Banking Transformation

by Stephen Greer, April 13, 2016
Case Studies
Global

Abstract

The vision for Celent’s Model Bank research, now in its ninth 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 three questions below.

Every year Celent suggests five to eight categories and invite banks to nominate their technology initiatives. Celent reviews all nominations and recognizes a number of them, up to four per category, with a Model Bank award.

In 2016, Celent accepted nominations in seven categories and awarded 18 initiatives. The case studies of winning initiatives are profiled in a seven part report series published today:

  1. Digital Banking Transformation
  2. Omnichannel Banking
  3. Digital Payments and Cards
  4. Corporate Payments and Infrastructure Modernization
  5. Cash Management and Trade Finance
  6. Security, Fraud, and Risk Management
  7. Legacy and Ecosystem Transformation

In Part 1, Celent profiles four award-winning initiatives in digital banking.

  • Citizens Bank Wire by Relay
  • Santander US New Account Opening
  • Garanti Bank: iGaranti & Mobile Interactive Assistant (MIA)
  • DenizBank: IOT and FastPay

Digital banking is a hot topic in the industry, but transformation is not an easy proposition. The cultural and business model changes required for some institutions are daunting, and inertia always has a seat at the table. Without orienting the business towards digital, banks risk losing out to more agile and digitally adept competitors, both from within the industry and from nonbank challengers.

“Banks seem to understand instinctively the importance of digital,” says Stephen Greer, an analyst with Celent’s Banking practice and author of the report. “But in practice they have a long way to go to make the fundamental changes to the institution's culture and operating model.”

Nominations for Model Bank awards were accepted in late 2015. The Celent Banking team selected winners based on business benefits, degree of innovation, and technology or implementation excellence. Each Model Bank winning initiative is presented as a detailed case study within the report, including descriptions of business drivers, solutions, success metrics, and future plans.

This 44-page report contains four Celent Model Bank case studies, six tables, and 16 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 operating unit 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

3

 

Model Bank Overview

3

 

Summary of Model Bank Award Winning Initiatives

5

Key Themes in Digital Banking Transformation

9

 

The Growth of Digital Transformation

10

Citizens Bank Wire by Relay

11

Santander US: New Account Opening Solution

17

Garanti Bank: iGaranti & Mobile Interactive Assistant (MIA)

23

DenizBank: IoT and FastPay

31

Conclusion

37

Leveraging Celent’s Expertise

39

 

Support for Financial Institutions

39

 

Support for Vendors

39

Related Celent Research

40

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