Finacle Whiteboard

Yesterday (28/4/09) saw an amazing amount of coverage in the press on the ‘Co-operative Financial Services, UK selects Finacle for home-market transformation’ press-release. Seeing this at the end of 26 months since we first engaged with CFS, and thinking how drastically the environment has changed from then to now, there is a strong feeling of pride, but there is also lots to ponder.

Being in the thick of core-banking and core-systems-led transformation for more than a decade, one has observed the changing landscape for banks across the world and the paradigm-shifts that have happened over this period as they gradually began to let go of their decades-old legacy environments and use the opportunity to completely transform themselves into the digital age. Those who have been the first-movers, have freed themselves off the shackles of their legacy core systems, and achieved what genuinely seemed impossible till then - launching new and innovative products in weeks and not months, and servicing their customers effectively with a single-view of the relationship, giving a unified experience across channels, whether self-service or assisted, and all this at levels of operational efficiency and cost which are different by an order of magnitude. In Europe, and closer home in the UK, the last 24 months have seen a paradigm shift of thinking in this direction and more and more banks are biting the bullet.

But the downward spiral of the financial services market in the last few months have made many quite jittery – IT costs and discretionary spend is being cut down drastically – so where does a full-blown core systems transformation program stand a chance? It does – and the real visionary banks will see this as the right opportunity and time. When the chips are down, and your competitors are focusing on survival, is the best time to invest in setting your house in order, and prepare yourself with the competitive edge, before the next upturn around the corner.

And that is what CFS is doing. As a conservative bank, CFS has weathered the slow-down a lot better than the other UK banks, and in fact, has posted at the end of 2008, a 70 percent rise in banking profits, a 65 percent increase (y-o-y) in current account customers and a 20 percent increase in customer deposit balances. It has boldly decided to move ahead with one of the biggest and ambitious business transformation programs in its history – the Enterprise Platform will deliver to CFS a head start, which will give it an early-mover advantage in the UK market of tomorrow. If the Britannia merger goes through, the combined super-mutual with 9 million customers and £70 billion in assets can fully leverage the potential of the Finacle-based Enterprise Platform. And if it then exploits the footprint of the Co-op group’s 4500+ outlets in the UK and the Internet and mobile channels …. It can significantly shake up the UK market-place.

And I’m sure CFS will... because there’s a way…

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Posted by Rajesh Ravindranath at 05:37 AM | Permalink | Comments (0) | TrackBacks (0)

“Over 3 billion people are unbanked.” An exciting or depressing statement, depending on which side of the fence you view it from. For the day-laborer who cannot commute 10 miles on a week day to make her deposit, of less than a dollar’s equivalent, at the nearest bank, it’s disheartening. But, for banks willing to accept the challenge of remedying this situation, with an eye on sustainable profits and the bigger picture, it’s a virtual goldmine!

Consider for a moment, banks that have leveraged new age technology to redraw the retail landscape favorably for themselves, extending banking to include more segments of the masses, than ever before. I believe what’s achieved, though undoubtedly commendable, is a mere indication of the true potential of all that’s possible in the retail banking space. If banks can effectively accommodate banking transaction tickets of a smaller size, they would have a clear business imperative in converting the periphery into the mainstream, and banking the unbanked. This would mean flexibility in savings and repayment schedules, simplicity in processing, small product sizes when it comes to loans and low-balance savings accounts. Undoubtedly, proximity and ease of access, along with basic financial education or information, will go a long way in easing the pain. And if the technology advantage could be harnessed to achieve the scale, reach and efficiencies to do it then, what’s to stop the ambitious from leveraging the edge that technology can provide to bank the unbanked, NOW?!!!

The technology is ready. The business is great. The cause is good. The unbanked await a change leader to lead the way…

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Posted by Haragopal Mangipudi at 05:29 AM | Permalink | Comments (1) | TrackBacks (0)

A statement as ridiculous as saying “A core banking solution, is all it takes to transform”.

Most banks will agree, when I say that a transformation partner’s agenda must definitely go beyond technology enablement. The aim should be to empower bankers with holistic and integrated ammunition to develop new, improved capabilities, and build a more resilient, yet flexible business organization. The transformation journey must help the business emerge with the prowess and agility to respond to changing business dynamics, across multiple dimensions.

At the onset of transformation the partner’s transformation assets, cognition of end-state goals and ably-charted plans must inspire confidence in the bank. Not just solutions, but transformational services that the partner brings in, will play a crucial role in enabling the bank to shift its strategic and operational priorities. Finally, the partner’s track record of having enabled banking transformation for your toughest competitors will help build the case internally.

And yes, with the core at the core acting as a robust transformation engine, you’ve got a winning move in the making. No, it’s not simple. But then again, getting rich, rarely is.

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Posted by Basudev Banerjee at 05:17 AM | Permalink | Comments (0) | TrackBacks (0)

The popular clothes retail chain, at my favourite mall wore a sign some weeks ago that screamed “What if the party is over…you still have the party-wear!!!!” It advertises their new scheme that allows customers to buy ‘essential’ clothing, and earn points they can redeem for the fancier stuff. Perfectly appealing to the recession-hit shopper, who can now enjoy ‘guilt-free’ wardrobe building, even as she apparently shops for essential wear. A great way to get rid of stocks that could go cold, as well! And all this achieved because of the chain’s ability to respond to change, quickly…relevantly.

Now, what would it take for a bank to ‘respond to change’ as nimbly and profitably? Undoubtedly, they’d need to have a ready connect to the source of the change-triggers. Then, there’s the need for a mechanism to outline the implication of these changes for the bank, in terms of ‘actionables’. This intelligence must be fed consistently across the business ecosystem. At the heart of this system must lie a robust core ready to respond to this intelligence born of change, in ways that can help the bank not just survive but thrive in the changed scenario. This would get the inception of the ’agile bank’ started.

I firmly believe, an integrated and consolidated technology engine is what it’ll take to drive this nimble organization - promising happier customers, lowered costs, increasing profits – all created from the bank’s renewed ability to respond to change meaningfully, and faster.

And like the retailer claimed…we may still have something to smile about…though the party has supposedly cooled off.

Posted by Anuradha Mallya at 09:50 AM | Permalink | Comments (0) | TrackBacks (0)

Yes! You read that right! I was pondering about how banks can harness customer energies to steer their business, more meaningfully.

I think, there is a distinct merit in banks considering customers not merely as clients but as partners with whom to embark upon a joint exercise in wealth creation. Service strategies and innovations shaped by their ideas, suggestions….feedback…can form a dynamic core around which the business can be continuously evolved, profitably.

Perhaps an optimal mode of incorporating customer feedback is through a 'Customer Advisory Council'. You can invite customers to participate in this forum. Volunteering customers can also be welcomed. Your bank can put forth its plans – for future products and services before this Council. The Council in turn, can validate it, offer suggestions and active feedback. Fresh concepts, inspired by ideas on customers’ wish lists, can also be brought to life. Needless to say, this will have a hugely positive rub-off on the customer relationship itself. Even better, these customers can turn brand ambassadors for your bank…advocating these products and services they have helped create, through blogs and other networking channels.

Now, it doesn’t take much to see that this can be a great opportunity for your business to build credibility in a difficult environment and add value in a world of lost trust.

After all, if it is the customer who holds the key to the bank’s success, it seems logical to request him to turn it in the right direction as well.

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Posted by Rajashekara V. Maiya at 05:09 AM | Permalink | Comments (0) | TrackBacks (0)