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IBM Sales and Distribution Banking – Back Office and Operations Solutions

Solution Brief

Core systems
transformation for
banking
Start at the core

How will banks begin making money again without turning off
Highlights recession-strapped customers? Strengthening balance sheets is a multi-
year journey that will require raising equity, redefining business models
● Standardize and link core processes to and retaining profits. Banks will have to achieve radically lower costs
reduce cost and complexity
with reduced complexity and accelerated mergers, acquisitions and
● Update existing technology to speed up divestitures.
systems and handle increased transac-
tion volumes
The core systems transformation solution for banking from IBM can
● Use component-based models to help you address the paradox that bankers face: how to cut costs today
design new core banking systems,
while investing in the future. Growth often depends on smarter cost
keeping costs down
containment and holistic risk management plus deeper customer rela-
● Improve access to key information by tionships. For many banks, core banking modernization of deposits,
centralizing customer, account and
product data lending, mortgage and other functions—often representing as much as
50 percent of total IT spend—is the place to start.
● Optimize implementation of regulatory-
driven change
IBM’s solution is based on proven progressive renovation, not disrup-
tive “big bang” change. Our analysis indicates that banks must redefine
their business models to return to long-term health. For Tier 1 and
Tier 2 banks, there are two basic scenarios (in addition to hybrid
models):

● Architecture-driven modernization that reengineers existing applica-


tions with service-oriented architecture (SOA) to simplify and accel-
erate reuse.
● Package-driven modernization using independent software vendor
(ISV) solutions.

Regardless of a client’s build vs. buy strategies, our comprehensive


banking industry framework accelerates smarter solutions. Its banking-
specific software platform can help institutions address pain points,
through:

● Banking extensions and prebuilt solution accelerators.


● Leading practices and business-specific usage patterns to lower risk.
● Adoption of open and industry standards.
● A choice of business applications from IBM Business Partners.
● Aligning technology with business needs.
What steps must firms take today to win? They must:

● Revitalize the balance sheet.


● Rebuild customer intimacy.
● Rethink their business model.
● Integrate risk and compliance management holistically. © Copyright IBM Corporation 2009
● Refresh processes to eliminate complexity. IBM Corporation
● Restore shareholder value. Route 100
Somers, NY 10589
● Reform their culture to make risk-based decisions.
● Recast analytics for CRM, risk and intelligence. Produced in the United States of America
November 2009
All Rights Reserved
Our solution can create a single set of business foundational services
for new and existing delivery channels, optimizing efficiency by: IBM, the IBM logo and ibm.com are trademarks or
registered trademarks of International Business Machines
Corporation in the United States, other countries or both. If
● Standardizing and linking core processes seamlessly to reduce cost these and other IBM trademarked terms are marked on their
and complexity. first occurrence in this information with a trademark symbol
(® or ™), these symbols indicate U.S. registered or common
● Updating existing technology to speed up slow and unresponsive sys- law trademarks owned by IBM at the time this information
tems and handle increased transaction volumes. was published. Such trademarks may also be registered or
● Using component-based models to design new core banking systems, common law trademarks in other countries. A current list of
IBM trademarks is available on the Web at “Copyright and
enabling modular application plug-ins as needed and keeping trademark information” at ibm.com/legal/copytrade.shtml
costs down.
Other product, company or service names may be
● Reducing organizational complexity by centralizing customer, trademarks or service marks of others.
account and product data, improving access to key information across
your organization.
Please Recycle
● Optimizing implementation of regulatory-driven change.

Our banking industry framework and models are driven by client


value, solution enabled, analytically grounded and globally executed.
We help accelerate results through componentization and specializa-
tion, using small projects that speed ROI. We’ll work with you to:

● Develop a “transformation plan” by identifying key focus areas.


● Make the most of existing assets—business services and processes.
● Assess suitability for reuse.
● Build flexible business solutions.
● Accelerate development of applications, Web services and interfaces
that close gaps but use existing assets.
● Create modern Web and GUI front ends and integrate applications.
● Use IBM’s industry and technology expertise to “future-proof” your
core banking environment.

Let IBM’s unparalleled industry and technology expertise optimize


your bank’s business value.

For more information


To learn more about core systems transformation, please contact
your IBM representative or IBM Business Partner, or visit:
ibm.com/banking

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