Solutions from Microsoft and its partners enable you to renew core banking systems in a managed, gradual, and modular way at a differentiated cost. Leveraging modern banking applications on a platform based on Microsoft technologies enables a phased, strategic approach that lets your people improve operations, reduce costs, and prepare for growth. Implementing a modular, component-based enterprise solution ensures strong integration with your existing technologies. An overall service-oriented-architecture (SOA) helps banks reduce the risk that can result from multiple data entries and out-of-date information, increase management approval, and avoid the potential disruption to business caused by replacing entire systems.
On This Page
Business challenges
In a multi-channel world, core banking systems are mission critical to banks that are required to operate 24 hours a day, 7 days a week. The costs of keeping legacy core banking systems operating are steep: Aging systems and infrastructures constantly need updates and renewal. Banks that delay updating core systems risk losing their competitive edge.
There are a number of challenges involved in maintaining legacy core banking systems and in updating and renewing them:
| • | Banks need to improve and differentiate the customer banking experience to attract and retain customers more profitably, even though they are constrained by their existing systems' hard coded business logic. |
| • | Disparate, disconnected, and outdated systems make it virtually impossible for banks to integrate customer and transactional information. |
| • | Old, inflexible systems take too much time to upgrade, resulting in a significant lag time introducing new products to market. |
| • | The pressure to reduce costs and improve efficiency is difficult to respond to without making fundamental changes to underlying legacy systems. |
| • | The potentially significant cost of updating ageing core banking systems makes it difficult to present a strong business case to modernize legacy systems. |
| • | The risk and complexity of implementing new core banking systems causes hesitation and uncertainty about where to begin. |
Solutions
Microsoft and its partners focus on helping banks leverage technology to amplify the impact your people can have to drive business success. We help your people develop relationships, drive innovation, improve operations, and build connections. Core banking solutions from Microsoft and its partners:
| • | Offer a modular, line-of-business, workload-by-workload approach to core system renewal. |
| • | Provide a risk-managed strategy to migrate systems. |
| • | Renew core systems in a managed way at a differentiated cost. |
| • | Take advantage of a component-based architecture that has a strong integration with systems already in place. An overall service-oriented-architecture (SOA) helps banks reduce the risk that can result from multiple data entries and out-of-date information, increase management approval, and avoid the potential disruption to business caused by replacing entire systems. |
| • | Easy to maintain and modify, banking solutions offer increased business agility due to use of SOA. |
| • | Enable banks to avoid replacing their entire system and potentially disrupt business. |
Examples of Core Banking needs
| • | Integrate new services: A large banking operation might want to improve and provide access to consistent and comprehensive customer information. Their front-line staff can then provide better customer service and correctly identify opportunities to offer new products to existing customers. A new customer information service that is fully integrated with existing legacy systems is clearly preferable to replacing the entire core banking system at one time. |
| • | Implement new systems: Another bank might want to market a new type of mortgage offering that the existing core banking system cannot support. In this case, it's critical to implement a new and highly flexible lending system that is fully integrated with existing enterprise services, such as customer information, payments, and credit-limit monitoring. With the new system, the bank can integrate processes, provide consistent customer information, and avoid duplicating efforts, such as redundant data entry and writing extra code. |
| • | Deploy an integrated core banking system: Yet another bank might want to fundamentally change the flexibility of its core banking capabilities. They would still need to maintain integration with well-established distribution channels that are based on a multi-channel architecture. For this bank, a new, comprehensive, modern, and open-core banking system may be the answer. Such a system could provide easy integration that is assured through compliance with industry standards. |
BIAN: Banking Industry Architecture Network
Microsoft is a founding member of BIAN, the Banking Industry Architecture Network. BIAN works with leading banks and software providers on helping the industry converge towards a common view of the banking enterprise services landscape, through the development of banking services specifications and semantic standards aimed at making integration easier.
Founding members include ING, Deutsche Bank, and Credit Suisse as well as leading service providers and software vendors SWIFT, Sungard, and Temenos. New members are welcome. Learn more at www.bian.org.
Case studies
Jih Sun International Bank
Jih Sun International Bank wanted to lower its total cost of ownership and implemented a core banking solution into its existing operations. Using Microsoft Windows Server 2003 enables Jih Sun to achieve cost savings and increased productivity. Jih Sun has a tailored core banking system that can support huge transaction volumes and runs smoothly.
DenizBank
DenizBank needed a more flexible core banking infrastructure to make it easier to integrate and deploy new solutions. The bank replaced its core banking platform with a Microsoft-based solution that has provided the agility the bank needs to develop new applications. It also provides support for high-volume transactions, database mirroring for high availability, easier data management with table partitioning, and ease of integration.
Banco Azteca
Banco Azteca wanted transactions costs kept low through maximum efficiencies in its core systems. Tests with a 64-bit Microsoft Windows Server 2003 platform showed dramatic improvements in performance and reliability. Benefits include increased performance (up to 70 times faster), a scalable solution for a growing business, better customer service, and compatibility with existing 32-bit systems.
Mashreqbank
Mashreqbank migrated its applications to a new, open architecture based on ASYSCO LION 5.2, Microsoft Windows Server 2003, Microsoft SQL Server 2000, and Microsoft Operations Manager 2005. The bank now develops new products and applications more quickly to meet market demands, has cut its end-of-day batch processing times in half, and has aligned its IT architecture with its business objectives.
Benefits
Reduce risk and complexity
Reducing risk and complexity means increased management buy-in and the opportunity to approach core banking renewal in a phased manner.
Reduce costs
Reduce costs by continuing to benefit from existing technology investments.
Improve overall operations
Improve your operations by updating systems in a strategic manner using modern application vendors' platforms.
Improve time to market
Using a modern and flexible core banking architecture enables product definition and orchestration of common enterprise services so that new products can be launched without lengthy software development and testing cycles.
Create deeper and more profitable customer relationships
Modernizing your core banking systems lets you obtain a comprehensive view of the customer, enabling your people to identify existing and new revenue opportunities. Your people can match service quality to the value of the relationship when they are able to analyze integrated data, and they better respond to changing customer needs because of the flexibility of Microsoft and partner solutions.
Overview
Technologies
View the PDF
