Risk Free Enterprise Architecture for Risk Risk Free Enterprise Architecture for Risk Risk Free Enterprise Architecture for Risk Risk Free Enterprise Architecture for Risk

Free Transformation of a BankFree Transformation of a BankFree Transformation of a BankFree Transformation of a Bank Increasing consumer demands, high costs and widespread dissatisfaction with ageing systems are the

main concerns which banks are facing now a days.

The main concerns from customers to define new goals for the banks are

• Ageing technology which difficult to maintain and support

• Multiple customer views and processes are not integrated because of

segregated infrastructure

• No centralized repository for products and it’s cumbersome to launch

new products

• No support for Risk Management

What is anticipated?

• Architecture that supports flexibility

• Systems capable of global deployment

• Customer centricity in terms of reach to bank’s processes and

functions

• Change Management aligned to business goals

Bank floats RFP’s for various individual requirements and finally it becomes a sea of consultants and SI

vendors creating a hub of functionalities supporting silos and each department is confused when it

comes to overall objectives and goals of the bank.

Goals can be following in a typical banking environment

• Strategic Level – Target sales, new markets, increased customers, reduced debt , End to End Digital

Transformation

• Departmental level – More revenue from loan products, increased fees from deposits, new channels

for launching products, TCO reduction for systems

• Supporting level- Better infrastructure, better risk management, better accounting practices,

streamlined process integration

Series of transformation initiatives can be replaced by a single initiative focusing on

• What are profitable products, services, segments, markets and channels

• What revenues are at risk

• ROI on innovative products and technological enhancements

• Understanding business across segments, channels and customers

• Making what channels most cost effective

• Visualization of best operating model in changing market scenario

• Enterprise wide view for risks and implementation of Enterprise Risk Management

• Become a learning organization with a collaboration between departments

Need of Enterprise Architecture Need of Enterprise Architecture Need of Enterprise Architecture Need of Enterprise Architecture

Enterprise Architecture is comprehensive ER analysis of entities across the enterprise and in case of a Bank

following are the steps to arrive at a comprehensive Enterprise Architecture

• Core enabling and supporting entities of a bank and their

relationship among each other.

• Capabilities of an entity and its relation with value chains

• Domain models for each entity and it’s sub-entities at core, enabling

and supporting level e.g. domain model for payments and online

payments

• Process Model for each entity e.g. process model for payments and

online payments

• Service Model for departments and it’s relation with different

functions

• Applications supporting departmental functions e.g. Applications

and technology functions for internet banking

Enterprise Risk ManagementEnterprise Risk ManagementEnterprise Risk ManagementEnterprise Risk Management for a Bankfor a Bankfor a Bankfor a Bank

Risk Management plays an important role in terms of transformation efforts. From risk management

perspective credit risk, market risk, interest rate risk and operational risk needs to be considered when

we are looking for a change at any level.

Enterprise Architecture should be influenced by recent risk management goals and objectives. All

architectural principles in relation to various risk categories should be considered while visualizing EA for

a bank influenced by goals and objectives.

Capabilities at core, enabling and supporting level must be related to processes, services, solutions,

applications in terms of risk events, processing of a request taking specific risk into consideration and

finally settle a transaction which free from any risk.

Why Enterprise Architecture before Transformation?Why Enterprise Architecture before Transformation?Why Enterprise Architecture before Transformation?Why Enterprise Architecture before Transformation?

Enterprise Architecture is holistic approach to solve a Bank’s business problems with an effort of business

process management in an integrated way, visualization of capabilities and relate it to services provided

to various stakeholders, monitor business developments and their fit in the bank and last but not the least

an enterprise level taxonomy for banking processes, banking, regulations, products, fees, risk

management, banking documents, and much more.