IBM Sales and Distribution
Solution Brief
Highlights
● Standardize and link core processes to
reduce 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
Banking – Back Office and Operations Solutions
Core systems
transformation for
banking
Start at the core
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 costs
with 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 functions—often representing as much as
50 percent of total IT spend—is the place to start.
IBM’s 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 client’s 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.
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.
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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. We’ll work with you to:

● Develop a “transformation plan” by identifying key focus areas.

● Make the most of existing assets—business 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 IBM’s industry and technology expertise to “future-proof” your
core banking environment.

Let IBM’s unparalleled industry and technology expertise optimize

your bank’s 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

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