Should you completely transform you core banking platform? Should you leave your legacy systems intact and build new user interfaces and integration layers on top of them? Is doing nothing a good strategy?
Perhaps. I think all of these approaches can be valid depending on the context and the strategy of the organization.
Either way, here are some arguments for and against an end to end core banking transformation program:
- These projects are extremely challenging requiring an almost zen like focus of the entire organization, ninja’s that double as technicians and architects, fully invested and engaged business stakeholders, and omniscient program management. Even with all of this, it’s going to be gruelling.
- These are big investments requiring a clear line of sight on benefits and a view of the strategic advantages of the transformation. The true transformation benefits require more than just system transformation and these benefits can be elusive.
- As a major business led initiative, the program will run up against organizational silos and barriers — part of the transformation will require reconsidering some of these structures and boundaries.
- It is difficult to find good partners, advice, resources, guidance, best practices and leadership on the topic.
- You may lose friends, your spouse will grow impatient with the constant discussion on the topic, and you may (in extreme cases) even be compelled to write articles in a blog on the topic.
- Banks can achieve a new level of operational capability and reach new levels of performance by transforming both process and platform.
- The programs are tough, but the people grow and become stronger. This is a great opportunity for a team to come together and understand the old and new organization end to end.
- If the benefits are clearly articulated and a focus is kept on realizing these benefits before, during and after the program they can be attained.
- Processes, structures, silos, and boundaries will be questioned and some will be left behind in the move to the new reality. Some of the most powerful changes can be what’s missing rather than what’s been added. This can be a great opportunity to simplify.
- It’s an opportunity to learn who your true partners are, who your real friends are, and if you happen to end up chattering away on a blog somewhere about core banking you may find others that are similarly affected.
Whether you are for or against end to end core banking transformation, these are some arguments that you can use to propel your case. So what do you think.. is it worth it?