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Leading the journeyEngaging a system integrator toorchestrate your core bankingtransformation

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Deloitte | Leading the journey | Engaging a system integrator to orchestrate your core banking transformation

Core banking transformation is oftencompared to open heart surgery. Indeed,the challenges and risks involved in corebanking replacement would appear to givethis statement a ring of truth. With this inmind, this paper aims to demonstrate thevalue of engaging a system integrator (SI)in any core banking transformation and tointroduce a set of selection criteria toguide decision-makers in selecting theright SI.

Banks are currently seeking to improvetheir competitive position and enhancecustomer experience by adapting flexibleand scalable digital channels. New corebanking solutions create the steppingstones to increase a bank’s efficiency andfoster its growth. Thus, there has neverbeen a better time for banks to considerreplacing old legacy banking systems withmore flexible, agile and efficient packagedsolutions.

However, core banking implementationprograms impose great businesschallenges and technological risks. Keyactivities, such as architecture, integration,data migration and operational readiness,are often underestimated, resulting in thefailure of the transformation journey formany banks. Furthermore, defining thetarget operating model andsimplifying/improving the bank’s processesare often overlooked when designing andimplementing the new solution. Finally,reaping the long-term benefits may proveto be as challenging as those met whenjustifying the need to invest in a new coresolution.

Indeed, core banking implementationoften leads to complex projects involvingmultiple stakeholders. The role of an SI isthen pivotal to coordinate the efforts of allstakeholders, thereby reducing the risksassociated with the program. An SI is apartner in the transformation journey andis an integral part of the program. Theirrole is to manage the transformationprogram and to map and implement thefuture state of the business.

Consequently, banks should consider anSI that exhibits proven qualifications andcapabilities in the following areas:• Maintaining the benefits case • Breadth of experience encompassing

business, people and technology• Business and solution architecture• Business operations and change

readiness • Software package expertise • Data migration • Integration• Vendor management• Project governance and delivery • Quality assurance and management• Capacity building and knowledge transfer

This paper aims to define the role of the SI in core banking implementation andhighlight the key SI capabilities to addresschallenges faced during core bankingimplementation. Additionally, this papersets out to provide insights into how toproactively manage the risks of a coretransformation.

A system integrator is a partner in thetransformation journeyand is an integral part of the program

Executive summary

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Core banking transformation by definitionrefers to the replacement, upgrade, oroutsourcing of a bank’s core systems.Over the last decade, core bankingtechnology has rapidly advanced tobecome enterprise-wide systems coveringmultiple banking products and functionalareas. The focus on the convergence ofdigital channels along with increases inscalability and flexibility has enabled real-time channel processing and multi-channel integration capabilities that havehelped grow the global banking sector.

Although banking technology hassignificantly developed in the last decadeand continues to evolve through mobile &payments applications and digitalization,the global banking sector is now facing adifferent set of challenges, with theaverage return on equity falling to 10%from the highs of 16% in 2007 mainly due

to external and internal economic andregulatory factors. The implications offalling returns are driving those banks withoutdated or legacy systems to adopt off-the-shelf core banking systems as part oftheir cost reduction/growth strategies.1

Core banking transformation driversCore banking transformation is driven by abank’s need to respond to internalbusiness initiatives that foster growth andefficiency, or as a response to externaldrivers, such as regulation, competition orcustomers’ needs. Banks have beenunderstandably reluctant to undertakesuch an initiative due to the high risksinvolved, although in recent years, manybanks are investing more in customerservice, product innovation and regulatorychange. Some of the key drivers forundertaking a core banking changeinclude:

Over the last decade,core banking technologyhas rapidly advanced tobecome enterprise-widesystems coveringmultiple bankingproducts and functionalareas

System integration: An integral part of a corebanking transformationjourney

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• Increased regulatory burden resultingin a need to cut costs, increase capitalreserves and improve risk management.

• Heightened customer expectationswith real-time digital banking viasmartphones and tablets. Mobilepayments are becoming commonplace,although they are accompanied by anincreasing service cost.

• Competition from other banks whohave rationalized their systems alreadyor new entrants such as FinTechs thatcan offer more competitively pricedproducts, and improved functionalfeatures.

• High operating costs and risksassociated with running legacyplatforms because of poor automationand/or the sheer complexity of existing ITestates that hinders product innovationand customer service.

• Inability of the legacy system toaccommodate the bank’s businessgrowth.

• Not being able to integrate disparateauxiliary solutions. This underminesthe bank’s overall efficiency and limit itsservices’ range.

• Maintainability of the core systemand/or people to operate the legacyimposes a major risk in operating orenhancing the current applicationinfrastructure.

Challenges in core bankingtransformationCore banking transformation is oftencompared to open heart surgery, due tothe significant business disruption duringthe implementation or deployment stages.The challenges and risks involved in corebanking replacement while running day-to-day operations certainly give thisstatement some credence.

Data migration, integration, process andsystems consolidation pose high risks tobanks during a core bankingtransformation project, as these affect abank’s core business operations andcustomers. Apart from the technological

risk, there are various otherimplementation challenges associatedwith core banking transformation.

• The high risk of failure: there are manyexamples of replacement programs thathave significantly exceeded their originalbudgets and timetables or failedcompletely, and these have tended toovershadow the successful programs.

• Core system replacement requires asignificant multi-year investment.Therefore, creating a compelling

business case based on directbenefits is difficult. The cost of suchprograms is likely to appear well inadvance of any benefits that will accrueover several years, usually in a longertimeframe than a bank’s planninghorizon.

• Ability of banks to “run” the banksimultaneously with “changing” thebank. This puts significant strain on theorganization’s capacity to deal with thismulti-year transformation.

• A bank’s legacy processes tend todepend on many inter-relatedapplications, leading to complex andcostly operations. The core bankingtransformation should not only focus onreplacing the outdated technology butdesign a simpler, more cost-effective,responsive and agile architecture thatcorresponds to the needs of thebusiness.

• Though core banking transformationinvolves a significant technologyinvestment in terms of resources andactivities, failing to align thetechnology with the business’scurrent and future needs can hamperthe success of the implementation.

• Although core banking package vendorshave made huge investments over thelast two decades in their products, therecan be significant gaps in support forspecific banking products and localbanking processes and regulations.

• Many factors work against embarkingon a core system replacement,including existing investments insystems, the range and complexity ofproducts offered by a bank andorganizational structures within theirown power bases.

Core banking transformation projects,therefore, have to deal with severalbarriers that may cause these projects tofail. A proper understanding of theaforementioned challenges must beincorporated into every core bankingtransformation strategy.

The need for a system integratorIn Deloitte’s work with banking leadersglobally, and more so in the Middle East, it has become clear that in many corebanking transformation projects, banksrely on their internal capabilities and

Data migration, integration, processand systems consolidation pose highrisks to banks during a core bankingtransformation project, as these affecta bank’s core business operations andcustomers

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those of the software vendor for theimplementation. The rationale for thisapproach is simply that the bank knows itsbusiness and legacy systems far betterthan anyone else and that the softwarevendor must be fully involved andresponsible considering the large financialinvestment made by the bank in thevendor’s software solution. For corebanking replacements, this approachoften leads to failure since bankingleaders lack the know-how and experienceof undertaking a core bankingtransformation and its associatedcomplexities. Software vendors, on theother hand, are mainly focused ondeploying their solutions and may not have the full set of core bankingtransformation capabilities to deploy anend-to-end integrated solution focused ontransforming the business. Using a simplemetaphor, the SI can be compared to theconductor of an orchestra while the bank’sbusiness, IT and the many vendors are likethe instrument players.

Core banking transformation is oftenthought of as a technology exercise,although the reality is that core bankingtransformation is a business-drivenexercise to upgrade a bank’s offerings andcreate a platform for new products thatmeet customers’ needs. Banks often fail toidentify core banking transformations askey strategic initiatives, thinking of them astactical solutions instead. Undertakingsuch large transformational programs(compared to regular enhancementswhich most banks are used to) will impactalmost all aspects of the legacy system.Underestimating such programs results inprojects having to deal with executioncomplexities, timeline extensions, andbudget overruns.

Prior to undertaking a core bankingtransformation journey, it is imperative for banks to define their business caseand business needs, whether the bankwants to reduce operating costs, improveefficiency, or diversify products, etc. Thetransformation must be driven by apositive business case, as well as the buy-in from all stakeholders on the needfor the core banking transformation. Asuccessful implementation should resultin a market differentiator or an enrichedcustomer value proposition. The mosteffective core banking implementationshave designed their IT architectureanchored in business needs.

Implementing a core bankingtransformation program often leads to a large, complex project, with multiplestakeholders across several teams withinthe bank. To mitigate this risk, one shouldlook for an SI with the requisite businessknowledge and technical expertise. TheSI’s role is to orchestrate this operationand coordinate the efforts of allstakeholders.

The path to a successful transformationstarts well in advance of any solutiondevelopment. Experienced systemsintegrators understand the challenge such transformations have and canidentify an inclusive methodology toeffectively manage risks early on. The next section highlights the role of an SIand their involvement in every aspect ofthe transformation journey.

The system integratorcan be compared to theconductor of anorchestra while thebank’s business, IT andthe many vendors arelike the instrumentplayers

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Systems integrators are not softwarevendors but rather a bank’s strategicpartner with the breadth and depth oftransformation capabilities mandated to lead and deliver the challengingtransformation journey. Their role is tohelp the bank define and implement the future state business architecture,processes and technologies whileoverseeing the transformation with propergovernance and controls. Deloitte hasdeveloped a comprehensive path tobanking transformation (Figure - 1), whichserves as a blueprint for core bankingtransformation. The methodology isdesigned to address all aspects of thetransformation journey and is structuredinto interrelated services/work-streamswhich are critical for a successfultransformation. When selecting an SI,banks should emphasize on most, if notall, of the following services/work packagesto be delivered by the SI.

a. Program governanceGiven the complexity of thetransformation journey, banks should look for SIs with proven experiences,

methodologies, tools, and processes toplan, govern, manage, and control theprogram. Large transformationalprograms tend to stumble upon manyunknowns, have frequent changes torequirements and include manystakeholders with various levels ofinfluence. Therefore, setting up the proper governance and channels upfront, managing and directing the workcompleted and monitoring and controllingthe program constraints is essential. Theleadership should be directly engaged inthe management and governance of thetransformation.

b. Strategy Creating a positive business case toundertake a core system transformation isnotoriously difficult. The costs of corereplacement are significant and crystallizewell ahead of the long-term benefits,typically exceeding banks’ planninghorizons of one to three years. Banksshould look for an SI who can help validatethe management’s vision and decisions bydefining the future state of the bank’sarchitecture and operations. Thus the SI

Given the complexity of the transformationjourney, banks shouldlook for systemintegrators with proven experiences,methodologies, tools,and processes to plan,govern, manage, andcontrol the program

The role of the systemintegrator

Corporate visionand objectives

Program management office/governance

Strategy workstream

Operations workstream

Technology workstream

People workstream

Convergence workstream

Future statestrategy

Risks and issues

Operating model Facilities

Process design

Architecture

Current state

Future state

Changemanagement

Leadership alignment

Leadershipalignment

Stakeholder engagement

Communications

Organizarional designand workforce transitionDataVendor delection

Define scope

Assess current stateOrganization

Program sponsor

Governance

Team structure

Planning

Work plan

Charter

START

Figure 1: The path to banking transformation – Deloitte core banking method2

REQUIREMENTS

DESIGN BUILDFinance

Refinedstrategy

Businesscase

Strategydesign

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will create the required business case toundertake such a transformationalproject. The benefits of core replacementin terms of additional revenue are moredifficult to model and measure, and casesthat are only made positive by suchbenefits tend to have less credibility withdecision-makers who mainly seek afinancial case.

Aligning IT to the business is a sequentialprocess that starts with understanding thebusiness context and strategy, followed bydefining the capabilities and requirementsnecessary to support that strategy.

Effective core banking business cases arenot built on financial benefits (i.e. ROI)alone, but tie the required benefits to yourorganization’s overall business strategy.Technical drivers for change (such as

technology currency, system availability,etc…) are not compelling if they do notclearly support the overarching businessneed. In addition, an effective caseconsiders all dimensions of your businesswhen structuring your business case byassessing the benefits in terms of howthey help to CHANGE the business, RUNthe business, and MANAGE the business.

When building a core system replacementbusiness case, it is important todifferentiate between the benefits that will be achieved directly with corereplacement alone, versus benefits thatwill still require changes to surroundingsystems. A well-defined boundarybetween core versus surrounding on both the costs and benefits sides of theequation is important.3

Deloitte’s Point of View on core bankingreplacement, “Making the case forchange”, outlines a pragmatic approach to building an effective business case sobanks can make and justify the case forchange.4

c. Operations Many banks fail to define the future stateof their business. In other words, theydefine their requirements to address theexisting model, and not aligned to thefuture strategy of the bank. An SI shouldbe responsible for integrating theinterdependent functions and businessprocesses of the bank, assessing thecurrent state and helping to define thefuture operating model for the business.An experienced SI understands thatfocusing on the bank’s business segmentis a critical success factor driving the

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transformation, and thus makes sure thatthe transformation is essentially businessdriven with technology integration. Thus, itis imperative to involve the business usersat every stage of the transformationjourney.

The biggest challenge in re-designing theentire operating model is to configure thecomponents in such a way that they worktogether smoothly. We observe that manybanks struggle to simultaneously manageinitiatives that have different objectives,ignoring interdependencies betweenvarious functions. In particular, necessaryinteraction between top line growth andefficiency improvement programs is often ignored. Many banks are alsooverwhelmed by the complexity of theirbusiness model and simply give up aimingfor coherence across all layers.

The Deloitte Target Operating Model(TOM) methodology’s main goal is toseamlessly align all components of thebusiness model, thereby eliminatinginefficiencies. Business complexity isreduced by deconstructing theorganization into its constituent parts,enabling management to clearly map and visualize interdependencies and tounderstand the key gaps between thecurrent and target states. It breaks theoperating model down into nine keyconstituent layers, starting fromcustomers/channels through to theprocesses that will be required to deliver the strategic objectives such asorganization, technology and people.5

Moreover, the SI is expected to be aware of all changes and their respectiveimpact that occur as a result of theimplementation. In this regard, it isimperative and crucial to highlight the risk of scope creep and change inrequirements throughout the project; the involvement of multiple stakeholdersis often accompanied by divergent newrequirements, which increases risk, time,and cost overruns.

Although customizations are required, it is important to assess how muchcustomization is necessary. Banks oftenmake the mistake of customizing so muchthat they stop harnessing the benefits ofchoosing a package. Rather, they build acomplex solution that becomes difficult tomaintain in the longer run, and create exitbarriers to upgrade and increase total costof ownership. An SI must therefore beable to challenge each and every businessrequirement to limit customizations. It isessential that the SI creates a balancebetween additional requirements,business benefits, and system complexity.

d. Technology Most banks try to replicate their legacysystem, practices, and processes whiledefining the new system. Legacyarchitecture tends to be complex andmight have limited documentation on how the individual systems are definedand interact with each other. An SI willhelp the bank in defining the newarchitecture and infrastructure, revisitingthe target operating model following an“adopt rather than adapt” approach.Successful technology integration andarchitecture will always be driven from the business benefits and needs ratherthan driving them. Guided by businessrequirements and presented with basicbusiness terminology, an SI can help inaligning complex technical specificationsand thus invite greater engagementbetween IT and business professionals.

In addition, old legacy systems often comewith lack of documentation, missing dataand inadequate expertise. Data mapping,cleansing, extraction and transformationtend to create a significant bottleneck.Migrating data across multiple systemsoften appears to be a complex exercise;inadequate design, mapping andreconciliation might derail the executionplan. An experienced SI will help the bankmigrate to the new system in the mosteffective way, by helping define therequirements for mapping, transforming,loading and reconciliation to align with the bank’s finance, risk and controlexpectations.

e. People The readiness of people and operations is a critical element to core bankingtransformation success and addresses the adoption and sustainability of thechange initiatives. An SI should be able toassess the operational readiness of theprocesses, people and technology in thetransformation. The assessments will help develop an integrated approach tocommunications, stakeholder engagementand preparation, training, andorganizational alignment and transition.

One of the key responsibilities of an SI isto manage communication and changesacross vendor organizations and differentgroups within the bank. It is imperative tocommunicate and manage stakeholderseffectively. By understanding employees’perceptions and expectations at an earlystage of the transformation, the SI canenhance the probability of accepting thenew system by all affected while softeningthe change impact on the day-to-dayoperations during implementation andensuring a smooth post go-live operation.

Moreover, the introduction of newbusiness processes and the simplificationof others often requires a re-validation ofthe existing resources and departments. Itis imperative for the SI to bring on-boardexperienced organization designers that

One of the keyresponsibilities of asystem integrator is tomanage communicationand changes acrossvendor organizations and different groupswithin the bank

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can help align the target operating model,the new core banking solution and thebank’s strategy together to maximize thebenefits from the transformation.

In addition, an experienced SI will supportthe bank in identifying, assessing anddesigning any HR changes as a result ofthe core banking transformation.Successful SIs will also help to developtraining that will address all aspectsimpacted by the implementation.

f. Convergence Now that the requirements have beencollected, and the solution designed, thecore banking transformation will succeedonly when the integration is cohesive andcomprehensive. An SI should continuesupporting the bank in key designdecisions while focusing on dataredundancy, performance impact, andworkflow automation. The complexity ofthe solution needs to be minimized, anddesign decisions must be strategic tosimplify the system’s architecture.

A core banking system can only succeedwhen the integration between the legacyand new solutions is seamless.Transformational programs require robust and proven implementationmethodologies. A “one solution fits all”attitude rarely works. An SI will help banksembrace methodologies suggested byexperts and best practices, leading to asuccessful transformation.

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Selecting the right SI can be a challengingactivity. In addition to ensuring that an SI can deliver the abovementionedcapabilities, the following list provides keyselection criteria for choosing the right SIfor your core banking transformationjourney.

a. Industry expertise with specificsolution and package experienceThe SI must have a proven track record ofsuccessfully implementing the specificsolution/package in multiple core bankingprojects that are of a similar nature toyour bank’s transformation in terms ofproduct scope, geographic scope, numberof branches, etc. It is critical to leveragethe SI’s expertise and lessons learnt fromprevious projects when planning andexecuting your transformation. Your SIpartner should be able to demonstratethe following:• Qualifications in implementing the

specific solution / package.• Governance model and relationship with

the software solution provider. It iscritical to understand the strength of therelationship between the SI and softwarevendor as well as the roles andresponsibilities of each organization inthe context of your transformation.

• Certified and industry accepted tools and methodologies to implement thespecific package solution.

• Product certified and experienceddevelopment resources.

b. Experience and skills of business & solution architectsThe most important role in any corebanking transformation project is playedby business and solution architects thathave in-depth knowledge and experienceof banking processes, referencearchitectures and the products to beimplemented. Below-par architects wouldmean inadequate expertise regardingcommon and good practices as well asout-of-the box functionality, resulting in apoor design and fit gap analysis. It is veryimportant that your project qualityassurance advisor interviews all SIarchitects and senior functional resources.Without this skill-set, it is practicallyimpossible to have a high qualityimplementation. Therefore, it isrecommended to give the experience andskill of architects a relatively higherweighting in the selection criteria. Banksshould look to partner with an SI that canbring the following on-board:• Business and technology architects to

address and design the bank’s business,application, integration, information andsystem architectures.

• Comprehensive repository of referencebanking architectures and technologyarchitectures to accelerate and validatesolution designs.

• Senior business consultants with strongproduct and technical knowledge togather requirements and developfunctional specifications adhering toarchitecture design principles.

c. Focus on the non-technicalimplementation success factorsWhile IT is the engine of thetransformation journey, the businessremains nonetheless the brain and focusto drive such a strategic initiative. The SImust add value by defining the target

SI selection criteriaIt is critical to leveragethe system integrator’sexpertise and lessonslearnt from previousprojects when planningand executing yourtransformation

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operating model, introduce processefficiency, minimize unnecessarycustomizations, support the impact onoperations readiness and deliver therequired training to ensure a smoothtransition to the new banking system. A successful SI will demonstrate:• Strong expertise in people, process

and technology operational readiness.• Proven capability in operating model

design and implementation.• Dedicated resources with experience

in change readiness, communication and training.

d. Data migration capabilityCore banking migration is not a typicalExtract Transform Load (ETL) migration.Legacy systems are often accompanied by poor documentation, inaccurate dataand absence of the right expertise. Datamapping, cleansing, extraction andtransformation, weak designs andincorrect migration often derail theexecution plan. Observing and managingthe holistic architecture, the SI shouldseek to integrate migration into everyprocess of the project, while involving abank’s finance, risk and control units. The bank should seek an SI who can lead migration by having:• Expertise and experience in supporting

the migration from the legacy system to the selected package solution.

• Data migration tools and guidingprinciples to reduce any risks involved in the process.

• Technical capabilities to map the legacysystem to the new core banking solution.

e. Integration capacitySystem integration is often underestimatedduring the transformation. Experienced SIswill ensure that the business processarchitecture is developed with a holisticview of the future state processes. This willhelp guide architectural decisions in termsof process optimization, rationalizationand reengineering as well as set thedirection for the design of the detailedprocesses to-be. Additionally, this will

drive the approach to integration andinterfacing between the various peripheralsystems and 3rd party applications. Themost experienced system integrators willguide banks in developing the requiredtarget integration architecture by on-boarding:• Proven knowledge and skills in designing

and implementing integration solutions,frameworks and architectures.

• Experienced resources with anunderstanding of banking technologysolutions and integration protocols.

f. Project implementation anddelivery approachStrong project management isfundamental to a successfulimplementation of a core systemtransformation. It provides theapproaches and assets for effectiveproject governance, managementstructure, control disciplines and planning.The project plan is one of the keydeliverables of the project planningfunction. It is used to monitor and reportthe status of all project tasks. This activityincludes planning the project’s overallapproach, resources, tools, budget,controls and schedule to direct andsupport effective, efficient projectexecution. It includes adjusting andrefining plans and procedures as theproject progresses and evolves.Possessing the following characteristicswill help in de-risking various aspects ofthe implementation:• Track record in managing and governing

similar projects.• Tools, methodologies and best practices

to set up, manage and control thevarious phases of the transformation.

g. Quality assurance andmanagementThe success of a transformation projectwill depend on timely, high-qualitydeliverables. Unsatisfactory deliverablescan introduce significant risk to thecompletion of a successful project. Yourchosen SI should define the qualityapproach, standards, activities and toolsthat projects use to deliver a high-qualitysolution, as well as the metrics that will beused to monitor and control the projecteffectively. Any relevant benefits and KPIsshould be integrated into the overallquality management approach for theproject. A successful SI partner will ensurebringing on-board experienced individualsat various intervals during theimplementation to review the progressand provide recommendations to improvethe execution of the project.

h. Knowledge transferBanks should seek an SI that is willing towork closely with the bank’s resources,help them build their internal capabilities,and develop a plan to hand over theirknowledge and skills to the bank’sresources so they can leverage them inthe longer run. Training and knowledgetransfer should be integral to any proposal submitted by the SI.

i. Experienced local resourcesWhile banks tend to focus on acquiringSMEs from outside the region, the SIneeds to also complement the SMEs with local expertise who understand theculture, provide the continuous/ongoingsupport and who has knowledge of thelocal banking requirements andregulation.

Strong project management isfundamental to a successfulimplementation of a core systemtransformation

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The core banking transformation is a longand hard journey towards upgradingexisting systems. Therefore, the mostimportant step for banks that take thedecision to transform and replace theircore is to commit fully all of the bank’sleadership, employees and resources tothe journey. The leadership should bedirectly engaged in the management andgovernance of the transformation. This isnot an exercise where the responsibility ispassed to an SI or IT; instead this is thevery essence to surviving and competingin a rapidly changing banking landscape.

As banks compete in this rapidly changingenvironment, the need for a flexible corebanking system becomes crucial.However, such a transformation holdsgreat risk, resulting in large complexprograms. Systems integrators are abank’s strategic partner with the breadthand depth of transformation capabilitiesmandated to lead and deliver thechallenging transformation journey. Their role is to help the bank define andimplement the future state businessarchitecture, processes and technologieswhile overseeing the transformation withproper governance and controls.

The Deloitte blueprint for core bankingtransformation addresses all aspects ofthe transformation and is structured intointerrelated services/work-streams whichare critical for a successful transformation.

When selecting an SI, banks shouldemphasize on most, if not all, of thefollowing services/work packages to bedelivered by the SI:• Program management • Strategy and business case development,• Future business and technology

operations mapping • Stakeholders’ communication and

change management• Convergence management

The role of an SI is pivotal in coordinatingthe effort of all stakeholders whilemanaging the thousands ofinterdependencies and hundreds of risks, thereby reducing the risk of thetransformation. An SI is a partner in thetransformation journey and is an integralpart of the program: their role is tomanage the transformation program andto map and implement the future state ofthe business.

In summary, there is a compelling need for banks to on-board a capable andexperienced SI to lead and deliver theircore banking transformation initiative. The goal is to select an SI with the rightcapabilities and experience and thereforethe focus should be on all aspects of thetransformation journey and not only onsolution implementation. The selected SImust demonstrate experience in corebanking packaged technologies, tools andmethodologies to address the bank’s

needs, and must have a wide range ofproven capabilities to support banks intheir core banking transformation journey.

References1. “The financial services industry reaches

an inflexion point” Deloitte/TemenosJune 2013

2. http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Financial-Services/gx-fsi-core-banking-transformation-map-2012-05.pdf

3. http://www2.deloitte.com/global/en/pages/financial-services/articles/when-legacy-is-notenough.html

4. http://www2.deloitte.com/global/en/pages/financial-services/articles/making-the-case-forchange.html

5. https://www.infosys.com/finsights/Documents/pdf/issue5/07-technology-system-integration.pdf

6. http://www.oracle.com/us/industries/financial-services/idc-ap772404u-wp-488545.pdf

7. https://www.edgeverve.com/finacle/resources/thought-papers/Documents/Top10-%20Challenges.pdf

8. “Bridging the Profitability Gap”Deloitte/Temenos April 2012

9. “The financial services industry reachesan inflexion point” Deloitte/TemenosJune 2013

10. http://www2.deloitte.com/content/dam/Deloitte/lu/Documents/strategy/lu-target-operating-model-tom-banks.pdf

Conclusion

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Contacts

Karam El DikSenior ConsultantTel +966 (5) 5129 [email protected]

Thaer BarakatBusiness AnalystTel +966 (5) 5196 [email protected]

Khaled HilmiPartnerTel +971 (5) 6133 1286 [email protected]

Ridhwaan SaloojeeSenior ManagerTel +971 (5) 6759 [email protected]

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