A Road Map to Multi-Channel Integration

by Isabella Fonseca, January 27, 2005

Abstract

Milan, Italy January 27, 2005

Depending on the approach taken to achieve multi-channel integration, Celent believes that banks can expect to achieve between 10 percent and 25 percent yearly cost savings in the areas of IT and operations.

In a new report, , Celent analyzes the various types of multi-channel integration projects followed by banks in North America and Europe, examining three major strategies: single-channel, incremental best-of-breed, and enterprise-level. To address these initiatives, banks consider middleware and enterprise platforms葉he two major technology options謡hich are broken down further into a "buy versus build" approach.

Although much has been written about the potential benefits of multi-channel integration, little attention has been paid to the strategies that will support this evolving technology area. In this report, Celent draws conclusions about the strategy path taken by North American and European banks to address multi-channel integration initiatives. Banks in Europe are placing a greater emphasis on integration of the various legacy systems and integration of these legacy systems to channels. North American banks, in contrast, have worked toward improving operational efficiency first by engaging in business-line discussions, focusing on channel-specific needs.

According to

Isabella Fonseca, an analyst in Celent痴 banking group and author of the report, "The critical missing point for banks to differentiate themselves in areas such as customer service, product offerings, and distribution networks is the lack of integration among channels and data within the bank痴 internal system infrastructure. This has caused many banks to accord additional importance to their current channel architectures and to examine the problems they cause."

The report also contains a case study on HDFC Bank in India. The study highlights the diversity of multichannel projects across regions and details the bank痴 well-thought methodology, which has led to a unified architecture. HDFC痴 strategy can set the example for other banks implementing a multi-channel integration environment.

This 30-page report includes 10 figures and five tables. A

is available online.

of Celent Communications' Retail Banking research service can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

Send mail to info@celent.com with questions or comments about this Web site.

 

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

 

  Milan, Italy January 27, 2005

A Road Map to  Multi-Channel Integration

Return to report Abstract

 

EXECUTIVE SUMMARY 3
INTRODUCTION 5
MULTI-CHANNEL DEVELOPMENTS 7
OPTIONS FOR MULTI-CHANNEL INTEGRATION 10
COSTS AND SAVINGS 14
MULTI-CHANNEL PROJECTS 16
CASE-STUDY: HDFC BANK LIMITED 17
  Background 17
  Technology Background 18
  The Search Process 18
  Implementation 21
  Spending 24
  Results and Looking Forward 24
CONCLUSION 28
OBJECTIVITY AND METHODOLOGY 29
 

Sign in to download reports and access personalized information