Core renewal gets BBVA picked as Model Bank
BBVA Compass, the US operation of the Spanish banking group, has been singled out as Model Bank of the Year in the latest report from international financial research and consultancy firm Celent, which cites the bank’s core transformation project in the infrastructure and architecture section of its Model Bank 2013: Case Studies of Effective Technology Usage in Banking.
BBVA Compass is the US operation of the Spanish banking group. Celent says its $360 million replacement of a legacy core with an Accenture-supplied Alnova real-time system “could be a game changing initiative”. The new system, which is already in use at BBVA operation in nine countries, serves the bank’s commercial, wealth management and 716 retail branches, and according to Celent, is “one of the first successful infrastructure transformations by a major US bank in over 10 years”.
“The implementation of our new core system was a huge milestone for us,” said Manolo Sanchez, BBVA Compass president and chief executive. “By introducing this powerful and flexible technology, we’re able to increase our focus on the rapidly changing needs of our customers and provide them with more personalized and innovative services.”
The new system powers BBVA Compass’ checking and savings, consumer and business lending, and mortgage capabilities – and is fully integrated with its branch and ATM networks, call centers and online and mobile banking services. The $362 million project cut the time it takes to open a new deposit account to as little as five minutes from more than 40, and reduced time to market for new products by up to 75%.
Celent’s model bank research is now in its sixth year, based on the simple premise of asking: “What would it look like for a financial institution to do everything right with today’s technology?” In each of the areas it looks at, the firm identifies key technologies and then looks for examples of best practices in their use.
“Innovation abounds in banking,” says Bob Meara, senior analyst with Celent’s banking group and co-author of the report. “With more Model Bank nominations than in any previous year, Celent’s challenge was to choose the most compelling examples of effective technology use in banking.”
“Many initiatives are extremely compelling based solely on their excellence in integrating and implementing complex technological pieces,” a Stephen Greer, Analyst with Celent’s Banking Group and coauthor of the report. “Obviously, the innovation has to be there, and the success metrics must be exemplary, but complex projects offer compelling insights into best practices in areas that are applicable to institutions and projects of all almost any kind.”
Categories and winners
Infrastructure and architecture
Key technology elements include: service-oriented architecture (SOA), core renewal, business process management, virtualization, and cloud computing.
BBVA Compass: core transformation initiative, Celent’s Model Bank of the Year for 2013
Kotak Mahindra Bank, core migration
Product development
Key technology elements: analytics, SOA, the enterprise service bus, and business process management.
Citibank: Citi Payments Analytics initiative
Capital One: Mobile 2.0 with Rewards Redemption initiative
Marketing and sales
Key technology elements include: analytics, customer data consolidation, understanding customer profitability, and relationship pricing systems.
Regions Bank: NOW Banking Initiative
Taishin Bank: Information Based Decision Support program
US Bank: Online Marketing and Lead Management Platform initiative
Customer service and support
Key technology elements include: analytics, skills-based routing and rules-based workflow, comprehensive interaction tracking systems, VoIP networks integrated with contact management systems, integrated and disciplined multichannel service, and an integrated customer view.
HSBC: Global Payments Investigations initiative
ICICI Bank: Next Generation Banking initiative
JP Morgan: Trusted Advisor Analytics initiative
Distribution/channel management
Key technology elements include: enterprisewide data consistency, user-friendly graphical user interface, depth of self-service integration, ubiquitous and consistent user experience, support for end-to-end process, workflow-based, rules-driven account opening, and multichannel integration.
ACLEDA Bank: mobile banking initiative
University Federal Credit Union: branch transformation initiative
Loan processing
Key technology elements include: automated application processing; real time status communication; instant access to online credit files; a single customer-centric portal; price and product analytics; document and collateral tracking; and consistent processing/underwriting.
HANA Bank: Cyber Bank initiative
Vietnam Prosperity Joint Stock Commercial Bank: core lending system initiative
Transaction processing
Key technology elements include: simplified payment initiation, rich remittance information linked to payments, rules-based engines, and platform modernisation.
ABSA Bank: Value Bundles initiative
Ecobank: Unified transaction banking solution
RCBC: Core banking initiative
Celent Impact Awards, new for 2013, celebrate the significant impact banks are making with relatively simple, straightforward initiatives. So logical and impactful are these initiatives, Celent is left asking, “Why aren’t more banks doing this?” Key technology elements include: business process management, desktop process analytics, image-enabled workflow and simple, intuitive user interface design. The following banks are recognized with Celent Impact Awards:
Bank of Montreal: Online Appointment Booking initiative
Commonwealth Bank: “Right People, Right Place, Right Time” initiative
JP Morgan: Corporate Mobile Deposits initiative
