8/9/2019 IBM Banking: Core Systems Transformation for Banking

1/2

IBM Sales and Distribution

Solution Brief

Banking Back Office and Operations Solutions

Core systemstransformation forbankingStart at the core

Highlights

Standardize and link core processes toreduce cost and complexity

Update existing technology to speed up

systems and handle increased transac-

tion volumes

Use component-based models to

design new core banking systems,

keeping costs down

Improve access to key information by

centralizing customer, account and

product data

Optimize implementation of regulatory-

driven change

How will banks begin making money again without turning off

recession-strapped customers? Strengthening balance sheets is a multi-

year journey that will require raising equity, redefining business models

and retaining profits. Banks will have to achieve radically lower costswith reduced complexity and accelerated mergers, acquisitions and

divestitures.

The core systems transformation solution for banking from IBM can

help you address the paradox that bankers face: how to cut costs today

while investing in the future. Growth often depends on smarter cost

containment and holistic risk management plus deeper customer rela-

tionships. For many banks, core banking modernization of deposits,

lending, mortgage and other functionsoften representing as much as

50 percent of total IT spendis the place to start.

IBMs solution is based on proven progressive renovation, not disrup-tive big bang change. Our analysis indicates that banks must redefine

their business models to return to long-term health. For Tier 1 and

Tier 2 banks, there are two basic scenarios (in addition to hybrid

models):

Architecture-driven modernization that reengineers existing applica-

tions with service-oriented architecture (SOA) to simplify and accel-

erate reuse. Package-driven modernization using independent software vendor

(ISV) solutions.

Regardless of a clients build vs. buy strategies, our comprehensive

banking industry framework accelerates smarter solutions. Its banking-

specific software platform can help institutions address pain points,

through:

Banking extensions and prebuilt solution accelerators. Leading practices and business-specific usage patterns to lower risk. Adoption of open and industry standards. A choice of business applications from IBM Business Partners. Aligning technology with business needs.

8/9/2019 IBM Banking: Core Systems Transformation for Banking

2/2

Please Recycle

What steps must firms take today to win? They must:

Revitalize the balance sheet. Rebuild customer intimacy. Rethink their business model. Integrate risk and compliance management holistically. Refresh processes to eliminate complexity. Restore shareholder value. Reform their culture to make risk-based decisions. Recast analytics for CRM, risk and intelligence.

Our solution can create a single set of business foundational services

for new and existing delivery channels, optimizing efficiency by:

Standardizing and linking core processes seamlessly to reduce cost

and complexity. Updating existing technology to speed up slow and unresponsive sys-

tems and handle increased transaction volumes. Using component-based models to design new core banking systems,

enabling modular application plug-ins as needed and keeping

costs down. Reducing organizational complexity by centralizing customer,

account and product data, improving access to key information across

your organization. Optimizing implementation of regulatory-driven change.

Our banking industry framework and models are driven by client

value, solution enabled, analytically grounded and globally executed.We help accelerate results through componentization and specializa-

tion, using small projects that speed ROI. Well work with you to:

Develop a transformation plan by identifying key focus areas. Make the most of existing assetsbusiness services and processes. Assess suitability for reuse. Build flexible business solutions. Accelerate development of applications, Web services and interfaces

that close gaps but use existing assets. Create modern Web and GUI front ends and integrate applications. Use IBMs industry and technology expertise to future-proof your

core banking environment.

Let IBMs unparalleled industry and technology expertise optimize

your banks business value.

For more information

To learn more about core systems transformation, please contact

your IBM representative or IBM Business Partner, or visit:

ibm.com/banking

Copyright IBM Corporation 2009

IBM CorporationRoute 100Somers, NY 10589

Produced in the United States of AmericaNovember 2009All Rights Reserved

IBM, the IBM logo and ibm.com are trademarks orregistered trademarks of International Business MachinesCorporation in the United States, other countries or both. Ifthese and other IBM trademarked terms are marked on theirfirst occurrence in this information with a trademark symbol

( or ), these symbols indicate U.S. registered or commonlaw trademarks owned by IBM at the time this informationwas published. Such trademarks may also be registered orcommon law trademarks in other countries. A current list ofIBM trademarks is available on the Web at Copyright andtrademark information at ibm.com/legal/copytrade.shtml

Other product, company or service names may betrademarks or service marks of others.

BZS03005-USEN-00

http://www.ibm.com/bankinghttp://www.ibm.com/bankinghttp://www.ibm.com/legal/copytrade.shtmlhttp://www.ibm.com/legal/copytrade.shtmlhttp://www.ibm.com/legal/copytrade.shtmlhttp://www.ibm.com/banking