12 Best Practices for a Core Banking Upgrade | Bank Systems & Technology http://www.banktech.


1 of 9

The New Bank Systems &

Advertise With Us
Contact Us
About Us
Welcome Guest
Login to your account
Banking Industry

News & Commentary
White Papers
Core Systems
Data Analytics
Management Strategies

Login to your account
About Us
Contact Us
Advertise with Us

19/3/2016 10:11 AM

.banktech.com/core-systems/12-best-practices-for-a-core-ban. 2 of 9 Google+ RSS Follow BS&T: Home News & Commentary Authors Video Reports White Papers Events Webinars Channels Payments Security Core Systems Compliance Data & Analytics Infrastructure Management Strategies Core Systems 4/28/2011 04:00 PM 19/3/2016 10:11 AM ..12 Best Practices for a Core Banking Upgrade | Bank Systems & Technology http://www.

Accordingly." Getting basic information. which is running its legacy and new core banking systems concurrently as it gradually performs its conversion module by module over five years. Cleanse data before the migration. schedule 19/3/2016 10:11 AM . Set a schedule and stick to it. argrees Stefan Besterman. "Data cleansing is something you have to do beforehand. When new data is entered in one system. in order is a critical first step.-based bank put all of its customer information files on its new Oracle (Redwood Shores. The Santa Clara. as a result.the vast platforms that support all retail transactions are that critical to the life of a bank. Calif. head of core banking international at Deutsche Bank. the other core is updated automatically. the costs -. don't expect the new system to do it.8 billion in assets). for their advice on what makes such a project smooth and successful. "Clean up the data in the old system. Here are their top 12 tips: 1. according to Bruce Wallace.to six-year project that began last year.). as well as the analysts who help them.of core banking projects are high. momentum is the most important thing. Silicon Valley Bank ($14.) Flexcube core last year so it would have a single repository even while some accounts remain on the legacy platform. had engineers ensure that its reporting and online delivery systems were getting the right information from both its legacy and new core systems.com/core-systems/12-best-practices-for-a-core-ban. 3 of 9 Penny Crosman News Connect Directly 1 Comment Comment Now Login 100%0% Like 1 Tweet Share 2 12 Best Practices for a Core Banking Upgrade Bankers who have recently completed or are in the midst of a core system replacement share their tips for a successful migration. especially account and customer data. head of global services. senior manager at consultancy LECG (Devon.and risks -. Bank Systems & Technology asked some bankers who recently completed or are in the middle of a core banking upgrade. Calif.." insists Rudiger Schmidt.. which is implementing TCS BaNCS Core Banking for global transaction banking in a five.banktech. To help you improve the prognosis for your core banking modernization initiative. Pa." he says. "Firms need to focus on mastering their data so they can aggregate and maintain control over all of this information. Bankers often refer to core systems migrations as open heart surgery -. 2. "For a program like this.12 Best Practices for a Core Banking Upgrade | Bank Systems & Technology http://www.

product ops. communications structures and all of the other changes needed to facilitate a cutover from one system to another. recalling the common 19/3/2016 10:11 AM . "That means occasionally you'll make some less-than-perfect decisions. you could go into a two-month spin cycle on a certain issue." he continues. Create a high-level decision-making body to arbitrate between different points of view. Conduct this type of test before the new signage goes up and the main bank will be insulated from complaints and criticism about early hiccups in the new software. and if you lose your schedule. which began in 2008. the credit group. 5. you might have to get back to that later." Evoking the common analogy.com/core-systems/12-best-practices-for-a-core-ban. 4 of 9 is important. command center structures. reusing formerly created tools and runbooks." says Commonwealth Bank's Curran. it's a four-year program." Narter notes." relates the bank's Wallace." says Schmidt. If that four-year program becomes a six-year program." Deutsche's Schmidt advises. It's chaired by Greg Becker. you'll lose your budget and everything else. documenting it and making it repeatable." 3. Curran points out. Use a guinea pig. IT. Curran warns. who adds that his group is leveraging experiences from former migrations." 6.because he was sick.banktech.which should include the heads of operations.12 Best Practices for a Core Banking Upgrade | Bank Systems & Technology http://www. The Sydney-based bank is converting its platforms to SAP for Banking. such as lines of business or operations and IT. the front office and the global team. tools and capabilities for migrating to or from any platform. But this is open heart surgery. "You get senior people to meet once every two weeks and make decisions. an executive steering committee that conducts periodic assessments of the core banking migration includes executives from IT. If you're working on the heart and see something wrong with the liver... advises Bart Narter. "Three key executives are intimately involved in the deployment and execution of the program -." says Dave Curran. another meeting." At Silicon Valley Bank." 4. "Each and every defect we find in this migration will be later reworked in the runback. "In our case. Sticking to a schedule also improves decision making. Commonwealth Bank of Australia also has an executive steering committee for its core banking project that's chaired by the bank's group chief executive and meets monthly. According to Deutsche's Schmidt. you could easily get to the point where you can't make decisions because you want to have another discussion. has been publicly estimated at $580 million. the bank has built a "storybook" of structured processes for migrating checklists. it will cost 50 percent more. and improving them. The group -. Deutsche Bank has created a "migration factory" -. according to an industry observer who requested anonymity. reportedly acquired a smaller bank and piloted its new core banking system at the acquired institution in order to work out the kinks before conducting a full-scale rollout. "If you're totally reengineering and creating a new system that will affect all parts of the bank.S. "You should not try to put all the items on your wish list into your requirements for the new system. Curran notes. SVP of Boston-based analyst firm Celent.a set of methodologies. and decisions should be final and binding. and meanwhile you've lost two or three weeks. "That's a clear example of priority setting. it will cost 50 percent more. Create a reusable blueprint. "We're formalizing it. "There will be some users who will feel that if they don't put their wish list in now. "These programs are really big. Don't try to do everything at once. One bank in the Northeast U." The price tag for Commonwealth Bank's four-year core banking project. "If the schedule is not important." he says. they'll never get what they want. commercial banking and commercial lending -. because the biggest cost is people. retail banking. But you can tidy those up later rather than trying to build the perfect solution. he says. program director of Commonwealth Bank of Australia's (US$770 billion in assets) core banking modernization initiative. the bank's president. adding that the focus on keeping on schedule moves everyone along.that's absolutely critical. "You can't afford to leave the patient on the table too long. "We've had 39 meetings and he's only missed one -. who makes final deployment decisions.should meet at least twice a month. If people work 50 percent longer. another steering group or conference call." Schedule drives cost.

even if you're changing IT platforms.12 Best Practices for a Core Banking Upgrade | Bank Systems & Technology http://www. the migration will involve "cloud enablement of the organization" -Commonwealth plans both to buy services from the cloud and to make its services available in the cloud. "You've got to make sure you have regular releases to business. "Say you're moving from an IBM mainframe to Unix and your IT staff only knows IBM. and then you can start implementing new functionalities. "Not because the deployments didn't go the way we expected them to." Narter explains. "I've never seen a core banking project go on time. say. Yet. and drive $200 million of annual spend out of IT budgets to help fund the core upgrade. "You can't disappear into the background for two or three years. "We have course-corrected a couple of times along the way. "Besides very expensive testing. Half of the effort in deploying a new core banking system with zero downtime is testing.. In a later phase. they understand the operations of the bank.com/core-systems/12-best-practices-for-a-core-ban. 10. complex project. reduce new functionality as much as possible -.banktech." Deutsche Bank's Schmidt says. "Among other things. invest in retraining the best existing staff on the new system. Manage the migration strictly. Commonwealth Bank of Australia's Curran points out that good governance is important at all stages. According to the bank's Wallace. Banks and markets don't have that kind of patience." contends Celent's Narter. "It's incredibly demotivating to people to know that as soon as the project is done. according to Curran.just try to migrate your existing business on the new platform." Narter says. which started its core modernization with a customer data integration project and a deposit program." Schmidt adds. Be prepared to quickly fix glitches in the new system. "Once you are on a new platform. 12. Try to enable and retain existing IT employees. Commonwealth worked to integrate all of its customer service touchpoints. they're going to be let go. "Because it's such a large. an entire year's worth of transactions. 5 of 9 core migration theme. Expect time and cost overruns. "You can only do that when you have the core. after deploying each module." he says." 9. but because certain dynamics or our original assumptions had changed.. At the "get fit before the operation" stage. It started with foreign currency loan software." So far. he reports. you won't be able to test everything. Deutsche Bank's Schmidt asserts. and they're rarely pleasant. "For the first transformation." he relates. Commonwealth Bank of Australia. End-user training on the new core system is also important to user adoption and the ultimate success of the project." he says. service orientation and architecture right. the bank has been averaging two deployments a year. sees its four-year modernization initiative as a series of projects. otherwise you'd need to replay. you have to be able to react fast to any problem after go-live. Have end users practice using the new system before official rollout. "They'll come up with things that don't work right." Instead. with two and a half deployments planned for 2011 -. Create small subprojects that can deliver value along the road. the bank reassesses its strategy. Silicon Valley Bank is taking a modular approach to its core banking conversion. looking at the success of the deployment and what might have changed from a market or client perspective from when the bank made its original assumptions." 19/3/2016 10:11 AM . We continue to reassess each time we do a deployment to make sure we have the right prioritization. To try to make the process as seamless as possible for clients. "The cutover itself has to be a military-like operation to run smoothly. piloting it with a few existing and new clients." 7. and you have to be flexible and prepared for some manual workarounds. there are always surprises. and even then you haven't covered everything." 8." points out Narter. "But at the end. upgrade its customer service and Internet platforms. he adds.two major deployments with a "mini release" of additional capabilities in between. Wallace says. migrating one piece at a time over the course of five years. 11." the bank's Curran notes. you're able to get to a new level of productivity.

. Q1 2015 The Forrester Wave: Digital Experience Platforms. Q4 2015 More Reports Comments Newest First | Oldest First | Threaded View Md. 6 of 9 Comment | Email This | Print | RSS More Insights Webcasts [Cloud Security] 5 Best Practices for a Scaling Environment [Threat Intelligence] Processes are a Journey. User Rank: Apprentice 4/30/2013 | 3:26:58 PM Login 50%50% re: 12 Best Practices for a Core Banking Upgrade very valuable tips Reply | Post Message | Messages List | Start a Board 19/3/2016 10:11 AM ..com/core-systems/12-best-practices-for-a-core-ban.banktech. Not a Destination More Webcasts White Papers Breaking Through WAN Performance Barriers and Deploying the Right Tools Top 7 Reasons to Create Agile Business Communications More White Papers Reports The Forrester Wave: Web Content Management Systems.12 Best Practices for a Core Banking Upgrade | Bank Systems & Technology http://www. Hasanur Rahman.

7 of 9 Live Events Webinars Interop Las Vegas Software-Defined Networking Track Networking Track at Interop Las Vegas Come to Interop Las Vegas. 2016 More UBM Tech Live Events Subscribe to Newsletters White Papers Breaking Through WAN Performance Barriers and Deploying the Right Tools Top 7 Reasons to Create Agile Business Communications Accelerate Your Startup with Cognitive Computing Flash-Enabled Real-Time Analytics .banktech.Grow Media Content Top 8 Considerations for Enabling Digital Transformation Within Financial Services More White Papers Current Issue Bank Systems & Technology Dec. Download This Issue! Back Issues | Must Reads Slideshows 19/3/2016 10:11 AM . modernizing core systems..com/core-systems/12-best-practices-for-a-core-ban.12 Best Practices for a Core Banking Upgrade | Bank Systems & Technology http://www.6. whether it involves leveraging the cloud.. 2. 2014 BS&T's 2014 Elite 8 executives are leading their banks to success. May 2 . or transforming into digital enterprises.

.banktech. 8 of 9 SEC Cyber-Security Sweep: Good News. for a conversation about the firm's 11th annual FinTech rankings.com/core-systems/12-best-practices-for-a-core-ban.12 Best Practices for a Core Banking Upgrade | Bank Systems & Technology http://www. Bad News 6 comments | Read | Post a Comment 4 Hot Mobile Banking Security Developments 2015 Banking Regulatory Outlook More Slideshows 4 0 comments Video All Videos Bank Systems & Technology Radio Archived Audio Interviews Recapping the IDC Financial Insights FinTech Rankings Join Bank Systems & Technology Associate Editor Bryan Yurcan. FULL SCHEDULE | ARCHIVED SHOWS About Us 19/3/2016 10:11 AM . and guests Karen Massey and Jerry Silva from IDC Financial Insights..

All rights reserved ICMI No Jitter Enterprise InformationWeek Tower & Small Cell Summit Game Development Interop Information Security IT Services & Support Advertising Contacts Event Calendar Tech Marketing Solutions Contact Us Licensing 19/3/2016 10:11 AM . 9 of 9 Contact Us Customer Support Sitemap Reprints Twitter Facebook LinkedIn Google+ RSS Technology Portfolio Black Hat Cloud Connect Dark Reading Enterprise Connect WORKING WITH US Fusion GDC GTEC Gamasutra COMMUNITIES SERVED HDI Network Computing Enterprise IT | Privacy Statement | Copyright Terms of Service © 2016 Communications UBM.banktech..com/core-systems/12-best-practices-for-a-core-ban.12 Best Practices for a Core Banking Upgrade | Bank Systems & Technology http://www..