On the Money: Transforming Banking with Smarter People and Processes
Shaku Selvakumar 060001XT47 firstname.lastname@example.org | | Tags:  bpm banking smartwork industry soa ibmimpact frameworks
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Contributed by Nancy Rivera
Recent events demonstrate how quickly economies, credit markets and access to capital can change. All of these changes can directly impact financial institutions in a matter of weeks, days, or even hours – leaving little time to respond and adapt.
Here are some of the key challenges banks face:
IBM is helping financial institutions modernize core banking infrastructures by connecting and reusing assets to reduce duplication, increase security and improve auditability. Connected bank systems enable a complete view of customer accounts, providing the right information for faster business decisions while reducing business risks. Shared information between bank systems provide banks with a basis to tailor product offerings that meet customer needs.
More agile, dynamic and connected systems help banks reduce the time and cost to respond to new business needs or regulations. Rapid connections to payment gateways across global finance markets increase return on investment (ROI) and improve compliance to internal and external regulations.
Bank of the Future
At First National Bank, a subsidiary of First National of Nebraska, the future is now. The bank, the largest private bank in the U.S., worked with IBM to design and implement a “branch of the future” that uses technology to create a seamless self-service experience that strengthens the bank’s brand while enhancing customer satisfaction.
At its Silver Lake branch, First National implemented a first-of-a-kind self-service solution that defines a whole new level of customer engagement. Designed with IBM Everywhere Branch Optimization at its core, customers enter an interactive gateway to information and self-directed branch services. To choose an option, a customer steps on a button, such as “products and services” or “open an account. For example, a customer can walk through the entire account creation process, including the production of an ATM/debit card that customers get on the spot—circumventing the usual lag time most banks require.
To access safe deposit boxes, First National’s branch of the future employs state-of-the-art iris scan technology to perform instantaneous, touchless authentication. 80 percent of customers have signed up for this feature - a proof point of its success. First National plans to broaden the deployment of its new solutions to new and existing branches across the U.S.
Although the new solution has the “wow” factor, it is also driving better business outcomes for the bank. It is experiencing improved customer satisfaction and building stronger customer relationships through a more engaging banking experience. The bank has seen customer growth at 30 percent over target. With an improved ability to provide the latest information on new products and services, First National has expanded its cross-selling opportunities. Customer feedback indicates the new image as a service innovator has strong appeal to younger, technologically savvy banking customers.
Banking Industry Frameworks
IBM provides Banking Industry Frameworks as a middleware platform to support banking solution deployment and integration. The framework gives clients the flexibility to deploy multiple solutions that enable clients to reuse existing assets, reduce risk and accelerate implementation. The frameworks include infrastructure software, along with banking-specific software extensions, pre-built solution accelerators, and best practice software usage patterns to speed deployment of solutions.
The banking framework supports solutions across the enterprise. Framework offerings are organized into four domains:
Core Banking Transformation to modernize and optimize the legacy applications that support core banking functions while aligning with the changing needs of the business;
Customer Care & Insight to build a foundation for creating a single view of the customer and enabling more effective and efficient sales and service;
Integrated Risk Management to support taking a holistic approach to managing financial risk, financial crimes, operational and IT risk, and compliance; and,
Payments & Securities to progressively transform payments operations to become more flexible and efficient.
Want to learn more?
Register for the Smart Work in Banking Webcast : "How First Citizens Bank is Using Business Processes to Work Smarter."
Date: Thursday, September 16. Time: 11:00 AM - 12:00 PM ET
Jon Meyer, VP, First Citizens Bank will discuss how the bank moved to fact-based proactive decision-making and reduced reporting times. Hear about the latest research and thought leadership on the evolution of banking technology from Nancy Pearson, VP AIM Marketing; and, nine ways banks can increase business agility, create a collaborative environment and integrate risk management with James Wallis, VP, IBM Global Payments Industry.
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