Many financial institutions benefit from a phased implementation. This practice breaks down the complex task of selecting and integrating a core platform into individual phases that can be approached one by one.
When selecting a new core, banks should assess both present and future needs, as well as any challenges standing in the way of accomplishing their business objectives. Building the business requirements with as much detail as possible equips the institution with the knowledge necessary to select a core banking platform that closest meets their underlying needs.
Selecting the right architecture for a banking system is essential and must match the core banking system, and the bank’s respective requirements. For example, most financial organizations operate within a banking system that amplifies a customer-centric environment whose functionality, among many other aspects, serves to meet the bank’s corporate objectives and goals. To do this, many banks are now gearing up to ensure more flexibility and scalability in their systems, which can require an open and flexible architecture.
The flexibility and scalability of a bank’s core banking platform of choice will determine how effectively the institution can grow and achieve its objectives. The more flexibility a bank’s system incorporates, the better adjusted that bank is to immediately and seamlessly adapt to customer needs in an ever evolving and highly competitive field. Similarly, investing in and focusing on scalability impacts growth rates within the market and commercial environment, especially in terms of products and delivery channels.
By establishing a bank’s core design and interface early as a foundational element driven by robust data, projects will run into fewer potential problems. Detailed systems should include:
As the new core banking system becomes ready, existing data will need to be migrated and converted for use in the new environment. Careful consideration and planning during the previous phases can streamline and even automate much of this step.
Months of hard work planning for, selecting, designing, and testing the new core banking system all culminate for the Go Live weekend, where the old systems will turn off and the new systems will turn on. Despite lots of hard work, organizations should plan for some customer disruption.
Systems changes not only impact employees; customers will also have a learning curve to adopt to new customer facing systems. The best course of action is to communicate with customers often during the process. Provide detailed timelines and specific expectations to minimize frustration. The organization should also plan for increased calls and customer outreach for a few weeks after the go live. Planning for this in advance will ensure that the organization has the proper staffing levels to quicky help customers impacted by the change.
Phase four considers the ongoing challenge of maintaining smooth operations between more than one delivery channel while continuing to maintain technical currency. The organization must implement an ongoing solution management process to ensure future functionality and that as business requirements evolve, the organization can implement change quickly and easily. Proper design and implementation are critical, but ongoing care and support are required to provide years of lasting performance
The switch to a new core banking platform is complex, but it does not need to be unnecessarily costly and difficult. The professionals at Hartman Executive Advisors help financial institutions to pivot without incurring wasted spending or time. Reach out to learn more or to schedule an appointment to get started.