Accenture Core Banking Services

Top three reasons to think of Accenture in Core Banking

Our research and work with leading banks around the world that have already undergone or begun this transformation, has allowed us to identify eight key strands of high performance “DNA” that coupled with a mastery in execution excellence create a foundation for achieving growth and reigniting shareholder value:

• Customer centric—universal banking model

• Multi-channel distribution model

• Industrialized operating model

• Prudent risk management policies

• Strong capital management discipline

• Ability to export and replicate the model

• Leading edge technology

• Superior talent management

FIgure 1Accenture Core Banking Framework—from strategic planning to execution to outsourcing

Planning the High Performance bank Implementing the High Performance bank

Offerings (solutions and services)

Chan

ge m

anag

emen

t

Core

ban

king

tra

nsfo

rmat

ion

Bank

tra

nsfo

rmat

ion

IT frameworks and technologies

Banking processes (horizontal and vertical)

Strategy and economics of high performers

Operating model

Industry-wide perspectiveStrategic intent

Business model

Operating model

Processes

Technology/services

The structural transformation needed in most cases to achieve this high performance “DNA” often includes a core banking transformation. It is a strategic initiative to simplify and embed new capabilities into a bank’s operating model, enabling a more competitive way to connect with customers, manage costs, and drive profitability.

Accenture views successful core banking transformation as a journey, and eachbank’s journey is unique. Market conditions suggest an incremental approach toimplementation based on prioritized capabilities and near-term business needs. The right approach also includes having an experienced, multi-faceted technology partner—a key to developing and maintaining innovative core banking capabilities.

Execute with the right partnerThe new normal in the banking landscape is now visible (finally). In this new normal, a sustainable roe of 12 percent is a viable target. This is lower than what many, including Accenture, considered achievable for the world’s high performing institutions several years ago; and it will be a stretch for many others. The efforts to sustain or restore returns at this level are forcing most banks into a new wave of transformation that this time has to be structural.

Why Accenture?1. We can support banks in all aspects of the core banking transformation journey.Drawing on our banking industry knowledge and experience, Accenture has helped banks succeed throughout the entire core banking transformation journey—from planning to execution to outsourcing.

Throughout the journey, we leverage our portfolio of industry knowledge, state-of-the-art assets and alliances, global network of experienced professionals, and innovative tools, taking our proprietary Core Banking Transformation Framework (figure 1) as the guide. Combining high-value consulting with extensive systems integration and outsourcing capabilities, Accenture is uniquely positioned to deliver value to our clients.

responding to today’s market forces and addressing profitability challenges and growth ambitions, leading banks are shifting to a new generation of core banking capabilities. There is much to gain in doing so successfully—fast growth and up to 15 percent lower cost/income ratio.

2. Multi-channeldistributionmodel

1. Customer centric universal banking model

3. Industrialized operating model

4. Prudent riskmanagementpolicies

6. Ability to export the model

7. Leading edge technology

8. Superior talent management

5. Strong capital management discipline

High Performance Bank DNA

Accenture Core Banking Services

Core Banking Transformation

Selective Capability Building

International Expansion and Consolidation

Acquisition Engine

Corporate Banking

Rightsizing

Utility Banking

FIgure 2Accenture Core Banking Service offerings

International Expansion and Consolidation—Combining Accenture knowledge and assets for helping banks succeed in their internationalization journey: operating model design and implementation, BPO Hubs, PMO, and sequenced implementation rollout.

Acquisition Engine—to accelerate cost effective M&A processes; industrialized approaches from strategy to technology integration including Data Migration engines and leading testing services.

Corporate Banking—focused on solving issues such as rebalancing portfolios, global services, and sales effectiveness through business model definitions and commercial and operational efficiency programs.

Rightsizing—designing and implementing industrialized operations, using the latest trends in technology, process transforma-tion and people management.

Utility Banking—a cost-effective outsourced platform based on ASP/ Cloud Core Banking Services that can accelerate time to market.

2. We bring innovative ideas and industrialized offerings. Accenture has developed a set of broad, innovative, end-to-end core banking offerings (figure 2) to support different bank transformation journeys and meet specific bank business needs at a competitive total cost of ownership while reducing implementation risk.

Core Banking Transformation—combining all types of transformations, renewal or gradual modernization including:

• Business Transformation—transformation embedding business and/or operating model transformation, where IT is one of the main enablers

• IT Transformation—systems integration, which can be combined with application outsourcing and/or BPO, before or after the Transformation

Selective Capability Building—Targeted interventions when a bank does not need to or cannot address a full core banking transformation; these interventions may be oriented to revenue growth like product and pricing or the multi-channel experience, or cost reduction like IT optimization programs and application downsizing.

CASe STuDY

BBVA debuts real-time processing in the U.S.BBVA implemented a landmark technology systems upgrade at its u.S. subsidiary, creating one of the first major real-time bank processing systems in the u.S. The project marks one of the first successful core banking infrastructure replace-ments for a major u.S. bank in more than a decade. Accenture provided its Alnova Financial Solutions software to the bank’s subsidiary, BBVA Compass, and helped implement the new system across all the bank’s 716 branches in seven states. It cuts the time it takes to open a new account to as little as five minutes from 45, and reduces time to market for new products by up to 75 percent.

CASe STuDY

Banking modernization at a leading Asia-Pacific banking groupThrough a modernization effort including the implementation of SAP Banking, this leading Asia-Pacific bank has become one of the most efficient large scale banks globally, with a cost/income ratio of 35 percent (48 percent pre-modernization). Accenture worked closely with the bank providing the High Performance Bank as a starting point, distilling the “art of the possible”, and helping operationalize their vision of re-inventing transfor-mation delivery. The bank now has the largest number of satisfied customers, achieving #1 in Customer Satisfaction and leadership in technology and innovation, accelerating them 2 to 3 years ahead of their competition.

InnoVATIVESoftware-based solutions and alliances

3. We provide predictable business outcomes.Accenture Core Banking Services isbacked by and delivered through abroad and diverse range of capabilities,enabling flexible, affordable, low-riskdelivery with predictable outcomes(figure 3). These include:

Banking industry and specialty skills. More than 27,500 Accenture professionals work with our banking clients globally. One third are specialists in core banking with asset-related implementation success, helping our clients to minimize execution risk and accelerate results.

Innovative software-based solutions and longstanding alliances. Through the dedicated organization, Accenture Software for Banking, Accenture manages its integrated core banking solution, Alnova Financial Solutions™, as well as standalone platforms and solutions including the Accenture Multichannel Platform and Accenture Product and Fee Factory.

We also have extensive experience—including developing industry enhancements for proprietary software—for Oracle, SAP and other global and regional software solutions that support our clients’ business needs, such as Fidelity, Finacle, Mysis, Silverlake and Temenos, to mention a few.

One of the largest, most diverse delivery networks in the world. The Core Banking Delivery organization is structured to cover local knowledge, delivery expertise, Centers of excellence (Testing, Configuration, Customizations and Migration) and specific packaged software knowledge. This organization is completely integrated in the Accenture global Delivery Network using common methodologies, architectures and metrics to turn more than 50 global facilities staffed by more than 80,000 professionals into a massive engine for high performance.

Broad set of methodologies, frameworks and accelerators. Accenture has a distinctive collection of global assets—ranging from methodologies (such as Accenture Delivery Methods) and frame-works, to High Performance Banking content (research, processes and services) and accelerators (such as testing and data conversion tools), which are customized or applied to different solutions.

A track record of implementation success. Accenture has delivered more than 200 core banking transformations across multiple types of operating models, geographies and software solutions.

For banks that have decided to change, Accenture has the banking industry knowledge, assets, people and tools to accelerate the journey and help mitigate the risk.

FIgure 3Delivering predictable business outcomes

>27,500 Skilled banking professionals

GLoBALDelivery network with global reach

ProVEnMethodologies, frameworks and accelerators

>200Successful core banking transformations

About AccentureAccenture is a global management consulting, technology services and outsourcing company, with approximately 261,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of uS$27.9 billion for the fiscal year ended Aug. 31, 2012. Its home page is www.accenture.com.

ContactsTo learn more about how Accenture Core Banking Services can help your bank achieve high performance, please contact:

Juan Pedro Moreno globaljuan.pedro.moreno@accenture.com

Chris WilliamsNorth Americac.t.williams@accenture.com

Teresa Alvarezeurope, Africa, Latin Americamaria.teresa.alvarez@accenture.com

Jason r. MarkAsia Pacificjason.r.mark@accenture.com

Copyright © 2013 Accenture All rights reserved.

Accenture, its logo, and High Performance Delivered are trademarks of Accenture.