Time for Real Time?

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Is it Time for Real Time? An Industry dialogue on the benefits, challenges, implementation approaches and lessons learned

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Transcript of Time for Real Time?

Page 1: Time for Real Time?

Is it Time for Real Time?

An Industry dialogue on the benefits,

challenges, implementation

approaches and lessons learned

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Panel Participants

Moderator:

Jim Neckopulos – Executive Director

Panelists:

Rick Kuhn: Director of Performance Management

Don Miley: Design & Development Director - Deposit Appls

Doug Gross: General Manager

Michael Upton: Digital Customer Experience

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Rick Kuhn: Director of Performance Management

Organization Profile

• First Niagara Bank, N.A., is a multi-state community-oriented

commercial bank

– 430 branches, approximately

– $35 billion in assets,

– $28 billion in deposits

– 6,000 employees

– Upstate New York, Pennsylvania, Connecticut and Massachusetts

• First Niagara leverages the MISER core system, which is a real time

engine supported by FIS. The past four years have been a period of

rapid growth for First Niagara, where the Bank has grown by more than

4 times as measured by assets.

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• Real time processing is common at community banks, but many do not

recognize the competitive advantage that real time provides.

• What is First Niagara doing to leverage real time processing?

– The goal is to “finalize” all transactions within 90 minutes.

• Virtually eliminate cross-cycle adjustments

• Creates significant improvement to customer experience

• Significant reductions in expenses relating to transactional corrections

– Open the Core to exponential increases in intraday notices and reports

– Architectural

• Reduce risk of contention to the Core by leverage an Operational Data

Store

• Leveraging service layers to perform repeatable processes will reduce

development and testing time.

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Rick Kuhn: Director of Performance Management

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Don Miley: Design & Development Director of Deposit Applications

Organization Profile

• BBVA Compass is a leading U.S. banking franchise with operations throughout the

Sunbelt Region and ranks among the top 20 largest U.S. commercial banks based on

deposit market share. Operating 716 branches in Alabama, Arizona, California,

Colorado, Florida, New Mexico and Texas. BBVA Compass ranks among the largest

banks in Alabama (3rd), Texas (4th) and Arizona (5th). BBVA Compass has been

recognized as one of the nation's leading Small Business Administration (SBA) lenders,

earning 'Lender of the Year' honors in 2009 and 2010.

• In 2011, BBVA Compass announced that it would replace it’s legacy core banking

systems with Accenture’s Alnova core banking application in an effort to achieve real-

time processing capabilities, improve time to market, and respond more quickly to

customer needs and expectations. Customer files, checking, savings, CD and IRA

deposit accounts and cards are all on our new core system. Loans are scheduled to

deploy in Q2 2013.

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Don Miley: Design & Development Director of Deposit Applications

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1. Celent Model Bank 2011, June 2011

Is it time for real time? It’s an infrastructure decision!

• New core banking platform is an enabler for further expansion

– Foundation now in place to grow channels and product offerings

– Account opening times cut in half

– Product time to market reduced by up to 75%

– Optimization of straight through processing (Ex: image capture)

• Key technology elements include Service Oriented Architecture (SOA), Enterprise Service

Bus (ESB) and Business Process Management (BPM) 1

– Elements benefit all areas of bank including customer service, sales, risk management

and product development, among others

• Improved and more accessible banking experience for customers1

– Access to banking functions via new channels

– Instant reconciliation of transactions

• Tailored delivery of product offerings to customers1

– Highly granular segmentation based on detailed customer information

• Superior operational efficiency and cost savings1

– Redundant operations across multiple legacy applications unified

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Don Miley: Design & Development Director of Deposit Applications

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Is it time for real time? It’s a business decision too!

• More than a technology project

– Must align with the Line of Business’ vision

– Must include elements of change management and process redesign

• Requires a paradigm shift within the organization

– Organization must begin to think in real time

– If in the end, employees try to make the new systems work the way the existing ones

worked, the transformation was a futile effort.

• Creates advantages for the customer

– Our customers expect information in real time

– We can create innovative products/features for our customers

– We can offer customers products/services they can’t get elsewhere

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Doug Gross: General Manager

Organization Profile

• Clear2Pay is a global provider of payments software to financial institutions

and processors for financial institutions. The Clear2Pay platform was designed

from the ground up as an enterprise payments processing platform/hub.

• Clear2Pay facilitates banks and financial organizations in their provision of

payments services, whether they be Card, ACH, Branch, Bulk, High Care or

International payment transactions.

• Clients include global and major regional financial institutions such as Wells

Fargo, Banco Santander, Crédit Agricole, BNP Paribas, The Federal Reserve,

Royal Bank of Scotland, The People’s Bank of China (PBOC), Bank of East

Asia, Rabobank, Bank of New York Mellon and Commonwealth Bank of

Australia.

• Recently, Clear2Pay was recognized for excellence in payments technology in

Global Finance magazine’s 2013 survey of the World’s Best Treasury & Cash

Management Providers.

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Doug Gross: General Manager

• Customers expectations are re-baselined – they expect less complex

and increased convenience for payment services

• Internal customers in credit and risk areas require real time information

to make the right decisions

• The path is proven and best practices exist

• Case studies are increasingly available

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Michael Upton: Digital Customer Experience

Organization Profile

• Capital One Financial Corporation (www.capitalone.com) is a financial

holding company whose subsidiaries, which include Capital One, N.A.

and Capital One Bank (USA), N.A.,

• Headquartered in McLean, Virginia, Capital One offers a broad

spectrum of financial products and services to consumers, small

businesses and commercial clients.

• Capital One, N.A. has approximately 900 branch locations primarily in

New York, New Jersey, Texas, Louisiana, Maryland, Virginia, and the

District of Columbia.

• A Fortune 500 company, Capital One trades on the New York Stock

Exchange under the symbol “COF” and is included in the S&P 100

index.

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Real time digital is just better…

• Customers compare their digital banking experience against everything

else that’s digital

• If you are a banking customer real-time digital is just better

• If you are a financial services company real-time digital is just better

• Real-time digital improves customers trust in their financial institution

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Michael Upton: Digital Customer Experience

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Michael Upton: Digital Customer Experience

• One size does not fit all. Customers’ value real-time for some

payments more than others.

• Payments that “Should” be real-time – Internal “good funds” money

movement is a no-regret low risk service that is foundational to

supporting multi-product ownership

• External payments and transfers – ACH has time based rules and

increased risk

• Customer Segmentation needs can and should differ

• Mobility is the new normal and is influencing money movement

strategies based on time & location

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Q & A Session

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