the eight stages of core banking transformations

Anabatic Technologies is one of the IT system integrator companies in Indonesia that has been doing some Core Banking System implementations. Based on George Cowell blog about eight stages of core banking transformation, I would like to share these eight stages where the most banks will go through for undertaking a core banking transformation. Hopefully it can be useful for all the banks. Here are the eight stages of core banking transformations:

Stage One – The Excitement of Something New

Most banks go through an extremely detailed, time consuming, and costly RFP process when assessing core banking solutions, integrators, and other peripherals required for their transformation project. The elation at the end of the RFP process with the selection of a solution (Vendor), integration partner (Integrator), and the other required hardware components normally generates an amazing amount of excitement. The bank is over optimistic at this point and the new project kicks off, all parties land on the ground… it’s the excitement of taking on the new!

Stage Two – Why is this so hard? It’s the integrator!

The excitement only last so long until the bank realizes that this is harder then they assumed. Gaining traction and momentum on the implementation takes longer than expected. All of the parties don’t seem to play well together. The bank assumes that the problem has to be the integrator they hired to help them implement the system. They rethink the strategy, they look back at the contract the bank and the Integrator descend into a renegotiation, the Bank looks for alternatives, time and money are wasted sorting out the blame game. In the end there is normally a replacement of the integrators senior management on the project some sort of concessions made and the project continues.

Stage Three- The Vendor’s product is defective and full of gaps!

Ill-defined processes start to come out of the woodwork. The capabilities and standards of the purchased solution start to be understood by the bank. Enhancements, extensions, and configurations start to be identified, effort and duration start to increase. “The solution was oversold, “ says the Bank! “You have asked for non-standard processes or functionality that was identified to you in the RFP” responds the vendor.  This creates noise and uncertainty within the project as suddenly scope is in question, the Bank and Vendor relationship is in question. Again the Bank looks for alternatives, time and money are wasted sorting out the blame game. In the end there is normally a replacement of the Vendors senior management on the project some sort of concessions made and the project continues.

Stage Four – Maybe we should cancel the project and sue!

The Bank is still upset! They feel cheated and betrayed. Pride takes over and leads a Bank right to the edge of canceling the project and letting the lawyers sort it out. Thankfully extreme actions normally also lead to extreme introspection. The healthy self inspection normally takes the bank back to the strategic decisions made related to the selection of the solution, the understanding that the need to transform is still in front of them. This normally pulls them back from the edge and the project continues.

Stage Five – Maybe we don’t know our processes?

Stage four’s introspection normally leads the Bank to question their own understanding of their processes. The understanding that a complete view of processes is missing within the organization allows them to question their status quo and opens their process up to true transformation

Stage Six – Maybe it’s our organization?

The natural progression to question the status quo of the processes normally leads to an epiphany related to the banks overall organization structure and questioning their management by silo mentality. Internally a power struggle over the definition and ownership of the business processes starts as the business realizes this isn’t an IT project it is a dramatic transformation of the business with the core banking transformation acting as a catalyst.

Stage Seven – All Hands on Deck!

The organization wakes up. The executive sponsor realizes that they actually need to do something other than sitting in status meetings. An all hands on deck mentality manifests as the Bank realizes internal infighting will not solve their problems. Normally there are some drastic changes in the Bank’s senior management structure at this point.

Stage Eight – Successful go live all is forgiven

Two or three years have passed, with multiple releases, and the final transformation is ready to go live. There will always be issues to resolve but for the most part the go-lives are successful. The core-banking platform has been replaces, processes redesigned, and the organization transformed for the better. The Bank has forgotten the trials and tribulations and normally becomes a supporter of the Vendor and their solution, and considers the Integrator a trusted business partner going forward.

Banks concerned with saving time and money in transformations will do the work required early on to address their own processes and organization issues (moving steps five and six ahead of step number one). They will also diligently work to remove steps two through four from their transformational journey. I would be interested to hear from others that have seen this pattern.

Source: Core Banking Blog

by Eko Priyanto – Corporate & Marketing Communications Manager

banking transformation

Sejak dimulainya era global market, interaksi antar sesama dapat dilakukan tanpa harus berinteraksi secara langsung (face to face). Hal ini dikarenakan hubungan interaksi bisa saja diselesaikan melalui dunia maya atau yang sering disebut internet. Maraknya jejaring sosial atau social network adalah merupakan ciri dari kemajuan teknologi berbasis internet atau online seperti facebook, twitter, linkedin dan masih banyak lagi yang semuanya mengandalkan kemajuan teknologi terkini.

Dukungan teknologi yang berkembang pesat memungkinkan semua aktifitas bisnis maupun non-bisnis dapat dilakukan tanpa dibatasi oleh ruang dan waktu dengan sangat cepat. Konsep transformation ini juga sangat berdampak kepada perkembangan sektor bisnis perbankan.

Beberapa bank kelas dunia seperti BNP Paribas, Deutsche Bank, dan lain-lain sudah mulai melakukan transformasi core banking sejak tahun 1999 dimana terjadi pembenahan aplikasi dari sebelumnya banyak aplikasi stand alone, menjadi integrated application dalam satu core banking.

Beberapa alasan yang menyebabkan bank melakukan transformasi bisnis adalah :

1. Legacy system tidak lagi dapat mendukung perkembangan bisnis bank
2. Komponen aplikasi yang tidak memungkinkan untuk melakukan efisiensi terhadap seluruh kebutuhan perbankan
3. Kehilangan kesempatan untuk berkompetisi dengan bank lain
4. Adanya issue terkait dengan perubahan regulasi dan resiko bisnis

Survey yang dilakukan oleh Ernest & Young Global Consumer Banking Survey tahun 2011 di beberapa Negara seperti Eropa, Amerika, Amerika Latin, Jepang, Kanada, Cina, India dan Afrika Utara menunjukkan tingkat kepercayaan nasabah kepada institusi keuangan atau bank tidak lebih dari 55%.

Dan hasil survey yang dilakukan oleh beberapa lembaga lain juga menunjukkan kompleksitas aplikasi menyebabkan dukungan terhadap growth suatu bank menjadi terhambat. Oleh karena itu untuk menunjang perkembangan teknologi seiring dengan kompetisi meraih pasar, perlu dilakukan proses transformasi.

Hasil survey yang di lakukan oleh IBM Institute pada tahun 2009 kepada sejumlah bank menunjukkan statistic data sebagai berikut :

Dampak positif yang dirasakan oleh bank secara langsung pada dengan proses transformasi adalah sebagaimana digambarkan dalam gambar berikut ini.

3 hal yang penting dalam melakukan proses transformasi teknologi untuk mendapatkan hasil yang maksimal adalah sebagaimana digambarkan dalam diagram di bawah ini.

Inilah yang dinamakan Banking Transformation. Merubah paradigma dunia perbankan bagi customer dengan memberikan kemudahan tanpa batas yang disertai dengan dukungan teknologi yang memungkinkan suatu bank dapat melakukan segala aktifitas bisnis dan berkompetisi serta berkembang seiring kemajuan teknologi terkini.

Keuntungan customer terkait dengan adanya proses transformasi di dunia perbankan diantaranya adalah :

• Semua elemen pengalaman nasabah terhadap investasi, inovasi produk dan pelayanan serta etos kerja di bank menumbuhkan keinginan untuk tetap mendapatkan yang terbaik dari bank tersebut (Brand enhancement programs).
• Hubungan personal terhadap kebutuhan terhadap produk perbankan yang bisa disesuaikan dengan kebutuhan nasabah akan lebih bisa memberikan persepsi yang baik terhadap brand tertentu (Personalizing banking).
• Transparansi dan penempatan nasabah sebagai salah satu kekuatan sales yang dimiliki oleh bank serta model insentif yang mungkin bisa diterapkan oleh bank merupakan penghargaan tersendiri kepada nasabah yang merasa menjadi bagian dari bank itu sendiri. (Create brand ambassadors).
• Adopsi social media dengan pendekatan improvisasi persepsi terhadap brand dan sistem konsultasi online untuk setiap kebutuhan nasabah menjadi bagian penting dalam menjamin kemudahan nasabah mendapatkan layanan perbankan (Embrace online innovation).

by Umarudin Zaenuri - Training Manager

what do sales people need?

Maintaining Self-Confidence

This is the absolutely the most important skill a salesperson can cultivate. Why? Because all the other skills are based on persistence. If you have every other sales skill listed below but you give up at the first hint of a “no,” then you’ll never have a chance to use those skills. The first time you speak to a prospect, they might not want to talk to you because they’re having a bad day… but if you call back a week later they’ll be eager to buy.

Self-confidence doesn’t end with persistence; if you believe in yourself and your product, your prospects will be inclined to believe as well. Self-confidence will also incline you towards a more assertive closing approach, which is vital to your selling success.

Good Listening 

Most salespeople are natural talkers. Unfortunately even a great speaker will only get so far without a little listening. Taking the time to ask your prospect questions and really listen to the answers shows respect for them, and gives you a clearer idea of what they want. So how can you tell if you’re doing enough listening? The next time you cold call a prospect, ask an open-ended question and then hit the mute button and leave yourself muted for at least a minute (or until you are absolutely sure the prospect is finished). By forcing yourself to be quiet, you will notice right away how strong your urge is to jump in and say something before the prospect has stopped talking.

Persuasiveness

Emotion plays a major role in sales. There’s an old saying that “features tell, benefits sell.” Features are the facts about your product or service; benefits are their emotional connotations. For example, a 0% interest rate on a credit card is a feature… being able to save money while buying the things you need is a benefit! Persuasiveness is the skill that allows you to convey these emotions to the customer. If you can make your prospect feel how great it will be to own your product and how much their life will be improved when they have it, you can sell it to them.

Building Strong Relationships

This sales skill is just as important to a salesperson’s business life as it is to their personal life. Building and maintaining healthy relationships is the key to developing a strong network. And networking will allow you to reach far, far more prospects than you could manage on your own.

Remember the theory of “Six Degrees of Separation?” Let’s say you’re trying to reach the decision maker at a major company but you don’t know anyone who works there. A call or two to your network contacts yields someone who knows someone who works for your target; armed with that person’s name and direct phone number, you now have access to the prospect.

Self-Motivating

Even the best salesperson is a work in progress. You can always find a way to develop your skills, work on your pitch, and learn more about the products and services you sell. But the drive to constantly improve yourself has to come from within. Your manager might direct you to make some changes if your sales start to plummet, but if you are constantly working to become a better salesperson you can start working on the issue before it affects your numbers.

Find the Fun

Sales works best when you treat it as a game. Treat each stage of each sale as a challenge that brings you closer to winning, and you’ll find a lot more fun in your work. Setting up a bunch of appointments or sinking your teeth into a juicy new lead list are just as important to the game as the final, closing stages, so don’t fixate on your closing numbers alone. Remember, if you’re enjoying yourself, your prospects will notice and appreciate it.

Treat Yourself

Set a few reasonable, attainable goals for yourself and decide on appropriate rewards. For instance, you might set a goal of 10 meet new contacts/customer this week and treat yourself to dinner at your favorite restaurant if you make them all. Always choose goals that are within your control, not ones that depend on someone else’s actions. In other words, deciding to spend five hours a week doing door-to-door calls or sending 10 emails a day to existing customers are controllable goals. Deciding to close five sales a week is not, because closing sales is dependent on the prospect’s decisions and isn’t something you can control. If you set smart goals for your activities and achieve them, the sales will come.

Learn to Love “No”

Salespeople hear the word “no” a lot. If you take them personally, you will burn out fast. When a prospect turns you down it often has nothing to do with you! He might be having a bad day, or he just bought a similar product from a competitor, or he can’t afford your product, or he’s just not a good fit. None of these things are your doing and they will happen regularly to every salesperson regardless of skill. So every time a prospect says “no” just remind yourself that they’re rejecting your product offering, not you.

Don’t Skimp on Preparation

Feeling nervous before a big presentation? Putting in some preparation time beforehand can really ease your stage fright. The more research and preparation you do, the better you’ll feel heading into a meeting. Preparation is most important before a sales pitch, but it can help with every stage of sales – for example, having a list of common objections and your best responses in front of you while you cold call can make you feel better armed to get the appointment.

Take Risks

It may sound crazy to talk about taking risks when you’re trying to build up confidence in yourself, but it works surprisingly well. When you operate outside your comfort zone, you stretch your mind and learn new things. If you try a new sales tactic – like selling via social media or reaching out to a new type of prospect – you’ll win every time. If you don’t succeed in making sales, you won’t feel too bad because, after all, it’s your first time trying. And if you do succeed right off the bat, you’ll feel terrific. In either case, once you return to your regular sales techniques you’ll find them much easier in comparison to the new methods you just attempted.

Source: http://sales.about.com

by: Edy Yulius - Business Manager

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