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Implementing the Core Banking System transformation

In recent years, MINDSPIRE Consulting’s experts have participated in the transformation of several CBS systems.
Discover our services related to the execution of core banking system transformation!

3. Implementing the core banking system transformation

The implementation of the core banking system transformation is the third stage of the MINDSPIRE CBS methodology.

Our competent CBS experts can also provide effective assistance in the implementation of the core banking transformation strategy.

implementing the core banking system transformation illustration

1. Developing a Core Banking Transformation Strategy

2. Preparing the core banking transformation

4. Core banking system maintenance and support

The main steps of Implementing the Core Banking System transformation

Following the strategic decision and the execution of the preparatory steps, MINDSPIRE’s core banking system transformation methodology is divided into the following five stages.

Basically, this seems like a structured waterfall-based approach, which, in our opinion, has no real alternative in high-level task planning.

In case of phased projects, the segmentation is more detailed, since a high-level iteration is given from the beginning. However, the relevance of iterative or agile practices during the CBS implementation also cannot be questioned.

MINDSPIRE Consulting can provide core banking system experts and analysts for its clients during the implementation of the CBS transformation. In addition, our employees can also play a role in the planning of the integration, but this usually does not extend to development tasks.

Our company has a mature, boxed migration methodology that covers every detail from the analysis to the execution.

Our seasoned Core Banking System experts support the bank’s employees during testing and in the coordination of the going live operation.

i.

Analysis

ii.

Design

iii.

Build and test

iv.

Data migration

v.

Go live

1. Developing a strategy

2. Preparing the transformation

3. Implementation

Analysis

Design

Build & Test

Data migration

Go live

4. Maintenance & support

Analyzing the functions of the existing and planned core banking systems

The functions to be implemented are usually identified during a phase-by-phase analysis.

If the product and process simplification has been completed during the preparation, then the starting point is the documentation prepared there. Otherwise, it is recommended to rationalize the products and processes at this point. The materials created while executing this task can be utilized in the completeness verification of the requirements analysis.

During the analysis of the current status (as-is), the expected requirements (to-be), and the conformity of the system (selected at the preparation phase) to these should be examined. The system can cover some requirements without modification (fit), others with modification only (gap). It is worth considering the specific aspects of the core banking system described in the next section, already at this point.

During the GAP analysis, our experts with significant experience, bank specific knowledge and analytical attitude can effectively support the comparison of the capabilities provided by the supplier with the requirements of the bank.

In our opinion, in most cases, only internal banking experts can make the specific decision, which are the basic functions that suit the colleagues, and which really require development. However, in connection with this, we have offered valuable support to our clients in identifying important issues, coordinating and facilitating negotiations, and suggesting possible alternative optio

1. Developing a strategy

2. Preparing the transformation

3. Implementation

Analysis

Design

Build & Test

Data migration

Go live

4. Maintenance & support

Designing the core banking system in detail

Based on the experience of our numerous previous projects, the following aspects should be taken into account during the detailed design of a bank’s account management system:

  • Overview of requirements by business domains, products, and processes.
  • Determining the exact target architecture for a given phase.
  • Defining the exact integration patterns and specific integrations for each stage.
  • Specifying a detailed target operating model.
  • Defining the IT infrastructure, environments, and configurations necessary for the given phase. During the core banking system transformation, at least seven, but in many cases more than twenty environments are created. If they are not scaled properly, project execution will be slow or the procurement of the oversized hardware will create unnecessary costs.
  • Developing customer document templates (statements, advices, slips).
  • Defining accounting and controlling requirements. For example, replacing a chart of accounts on-the-fly during the project, requires to start over the parameterization and testing, and may affect some integrations as well.
  • Designing the reports (operations, sales, controlling, management information, mandatory reports) and the connection to the data warehouse.
  • Ensure compliance with regulatory and group requirements.
  • Planning the IT security tasks.

Our experienced consultants can support the execution of the above tasks with solid banking and analytical experience.

In addition, we can provide our clients with our templates for an efficient overview and management of the listed requirements. However, where appropriate, we are also open to use the bank’s own templates or modeling tools.

In addition, MINDSPIRE Consulting’s core banking experts contribute to the identification of the actors to be involved, the organization, coordination and facilitation of the collection of requirements, and, if necessary, the validation of completeness based on our previous industry experience.

1. Developing a strategy

2. Preparing the transformation

3. Implementation

Analysis

Design

Build & Test

Data migration

Go live

4. Maintenance & support

The core banking system’s setup, build and testing

Core banking systems typically have an extremely wide range of configuration options, also known as parameterization or for some systems, configuration.

The experts of MINDSPIRE Consulting have significant experience in parameterizing various account management solutions for financial institutions. In addition to our extensive business and banking background knowledge, we also rely on our in-depth and practical system knowledge to perform such tasks.

Due to the complexity of configuration activities, we have developed our own parameterization approach, which we are using for core banking projects. We have prepared several parameterization concepts for our customers, aggregating conceptual questions related to the possible settings.

In addition to the parameterizations, the functional system development identified in the previous section, the interface developments and the related settings also has to be performed. Our experts support the development activities by answering business and banking related questions.

Having significant experience in performing functional and integration tests following the development and parameterization phase, we support our clients, based on our own testing methodology or the internal approach. In addition to preparing, administering and monitoring the test scenarios and test cases, we can also take part in actual testing, test management, error correction monitoring and retesting according to the needs of our clients.

Due to the complexity of core banking projects, usually it is a significant task to register the environments and to continuously monitor the parameters, configurations, integrations and applications included in these.

Due to the different needs of concurrent IT activities, multiple development environments have to be created and maintained. Verifications also require a number of environments, and the functional, lifecycle, integrated, migration, acceptance, performance and penetration tests are not always possible to execute in a single environment due to tight deadlines or other interdependencies.

To support the above challenges MINDSPIRE’s experienced core banking system experts provide customized release management services. Besides this, our proprietary solution that supports the efficient parameterization of the Oracle FLEXCUBE system is also available to our clients.

Discover the advantages of MINDSPIRE Oracle FLEXCUBE Parameter TRANSPORT tool!

WHY CHOOSE MINDSPIRE’S SERVICES DURING IMPLEMENTING THE CORE BANKING SYSTEM TRANSFORMATION?

MINDSPIRE Consulting is capable to take on the role of a full CBS integrator based on its knowledge about various core banking systems (e.g.: Flexcube, Transact (T24), Murex, CAMS and SMAC), its own CBS implementation methodology and also its efficiency-enhancing tools that can handle even the most complex changes of banking systems.

Methodology title

We offer our own CBS transformation methodology tested in many core banking projects to our clients.


Our experts reduce the cost of strategic planning using the methodology.

Toolset title

By using our CBS templates, core banking transformation projects can be executed more efficiently.


Our self-developed CBS tools can reduce the risks of transformation projects.

Resources title

Our team of 80+ CBS experts has proven its ability to deliver on several occasions.


We have participated in a number of successful core banking transformation projects in Hungary and the region.

Successfully Delivered Core Banking Transformation Projects

Countries of CBS deliveries so far

Number of our Core Banking consultants

CBS related experience in man-years

1. Developing a strategy

2. Preparing the transformation

3. Implementation

Analysis

Design

Build & Test

Data migration

Go live

4. Maintenance & support

Data migration tasks related to core banking system transformations

One of the key services of MINDSPIRE Consulting is providing data migration services to financial institutions, which also plays an important role in the transformation of core banking systems.

Our data migration services are based on industrial standard approaches, best practices and on our several years-long implementation experience. Utilising our deep business knowledge on financial institutions, we offer adequate approach and proper tools and always consider the specifics to customize our standard methodology.

Migration is not only about choosing the right tools and building the correct technical process, it also needs an operation framework. We offer comprehensive professional support during the conceptual design, the detailed design and development, the testing, the rollout and the post go-live phases.

For more information about the challenges and our solutions related to the data migration tasks of core banking systems please click on the button!

1. Developing a strategy

2. Preparing the transformation

3. Implementation

Analysis

Design

Build & Test

Data migration

Go live

4. Maintenance & support

Going Live with a Core Banking System

The tasks to be performed when going live with a core banking system are also known as cutover or rollout activities.

During the go live phase, the core banking system and its environment, such as the interfaces, have to be prepared for live operation. All this must be done in a way that it is possible to revert to the previous solution at the decision points built into the rollout process.

In order to operate a live system, various operational, client management and back-office manuals have to be generated as well. In addition, the financial institution’s involved staff have to be prepared to use the new core banking system, which should be supported with targeted training courses at the end of the project.

In order to reduce the risks involved in the cutover phase of the core banking system, dress rehearsals (or mock runs, dry runs) are often executed as preparation.

In addition to the above, MINDSPIRE Consulting’s experts can also provide support in the reporting and communication tasks required by law. In doing so, we mainly participate in the coordination of communication activities, the phrasing of the specific documents is typically compiled by the communication and legal departments of the bank.

The preconditions of the cutover, the tasks and responsibilities of the implementation, the lead times and the mandatory tasks to be performed immediately after the rollout will be set out in an integrated plan, which will allow the activities to be monitored.

Throughout the days and weeks following the successful go live phase of the core banking system, we support the professional analysis of the reported incidents, as well as their follow-up and coordination. In some cases, we have created a so-called ‘known error database’, which helped the day-to-day operation providing them with identified workarounds.

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