Illustrating the Essence of Core Banking Transformation: Beyond IT to Organizational Synergy.
1. They impact the entire organization, not just technology groups.
A core upgrade changes workflows, processes, data structures and more bank-wide.
2. The goals are business outcomes, not technical implementations.
The drivers are boosting agility, efficiency, analytics and customer experience through technology transformation.
3. All lines of business are involved, not just IT divisions.
LOB teams have crucial roles in requirements planning, user testing, change management and more.
4. The risks span well beyond technical challenges.
Business disruptions, revenue impacts, customer attrition and other enterprise risks must be managed.
5. It enables new business capabilities, not just replaces infrastructure.
A modern core platform allows launching innovative products and channels much faster.
6. The benefits are enterprise-wide, not departmental.
Boosts to productivity, operations, data insight and competitiveness help groups across the organization.
7. Stakeholder alignment is critical from start to finish.
A coordinated effort bridging IT, units, vendors, executives and more is imperative.
8. The focus must remain on business outcomes over technical outputs.
Shifting technology alone doesn’t guarantee benefits without an outcomes focus.
9. Culture change and talent uplift is required, not just new software.
Adoption, mindsets, capabilities and leadership growth are key.
10. Ongoing enhancements continue well after implementation.
Core modernization is a journey, not a one-time event. Progress requires persistence.
In other words, core transformations are complicated bank initiatives – not straightforward IT system replacements. This bank-wide perspective is vital for successful transformations.
Found this article interesting? Check out these three related reads for more.
- Why is it referred to as a core banking transformation instead of just a migration?
- Series (7/10): Why core banking transformations often fail Treating it as a project instead of a transformation
- Series (8/10): Why core banking transformations often fail Treating it like a technology project
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