Digital Transformation Hits Core Banking (2022)

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  • ') $(accordionID + '-controls .daccord-expandcollapse li').eq(1).hide(); $(accordionID + '-controls .daccord-expandcollapse li').on('click',function () { if ( $(this).index() == 0) { //expand $(accordionID + '-controls .daccord-expandcollapse li').eq(0).hide(); $(accordionID + '-controls .daccord-expandcollapse li').eq(1).show(); $(accordionID + ' .daccord-collapse').slideDown(daccordSpeed); $(accordionID +' .daccord-header').addClass('daccord-header-icon'); } if ( $(this).index() == 1) { //collapse $(accordionID + '-controls .daccord-expandcollapse li').eq(1).hide(); $(accordionID + '-controls .daccord-expandcollapse li').eq(0).show(); $(accordionID + ' .daccord-collapse').slideUp(daccordSpeed); $(accordionID +' .daccord-header').removeClass('daccord-header-icon'); } }); } //if a valid var from url exists override open item setting. var daccordUrlVar = $.getUrlVar('core-banking-digital-transformation-strategy'); if ($.fn.daccordIsInt(daccordUrlVar)) { var urlInt = parseInt(daccordUrlVar); daccordUrlVar = urlInt; properties.openItem = daccordUrlVar; } //Build item object from AEM Vars var daccordItems = []; //Item 1 daccordItems[0] = { itemTitle: "The case for retaining the legacy core (wait and see)", itemText: "

    The first step is to examine business needs and determine whether the legacy platform supports processing requirements, product capabilities, and regulatory compliance. If the bank’s platform is performing at an acceptable level, the bank may decide to do nothing in the short term. On the other hand, if the legacy platform is failing operational tasks, then some form of modernization is required.

    While doing nothing has a negative connotation, it may be advisable for a more risk-averse institution that doesn’t have the experience or business case yet. Rather, a bank may look for competitors to take the first step and only make a move after some success stories emerge in the market.

    This wait-and-see approach can be advantageous if the bank actively monitors market dynamics and starts positioning itself for upcoming change—i.e., identify and implement operational efficiencies, begin upskilling and recruiting new staff, refresh its business strategy and develop product and service roadmaps accordingly, and establish relationships with existing and new vendors to understand future options. In such a scenario, the bank will have a relatively straightforward data strategy if the current approach is fulfilling the data needs.

    ", itemImage: "${item-1-image}", itemImageRight: "${item-1-image-right}", itemMoreText: "${item-1-read-more-text}", itemMoreURL: "${item-1-read-more-url}", itemVideoURL: "${item-1-video-url}", itemInfographicUrl: "${item-1-infographic-url}" }; //Item 2 daccordItems[1] = { itemOpen: "${item-2-open}", itemTitle: "The case for re-platforming or re-factoring the core", itemText: "

    Once a business case to make change has been established, banks must consider the need to innovate beyond their existing offerings and capabilities. Are market forces pushing the bank to develop digital offerings? Are the bank’s competitors pulling ahead with new products and services? If innovation isn’t an urgent need, the bank can choose to modernize its platform either through re-platforming or re-factoring, depending on the scale of other required changes.

    These two options are detailed below:

    Re-platform: This is the less aggressive of the two options. It involves relatively minor adjustments that don’t change core functionality or require significantly new skill sets to implement. Examples of re-platforming include version upgrades or database updates. The data strategy in this case will be of low complexity.

    Re-factor: This option involves updating the codebase without changing baseline behavior. The result is improved readability, easier maintenance, greater extensibility, and potential cloud-readiness with potentially more complex data needs.

    For both options, while modernizing moves the bank from legacy to current-generation technology, it doesn’t change business capabilities. Banks with a high need to enhance their capabilities—for example, developing new account or customer structures, building innovative products, or applying advanced pricing schemes—need to look at either augmenting or replacing their core platform.

    ", itemImage: "${item-2-image}", itemImageRight: "${item-2-image-right}", itemMoreText: "${item-2-read-more-text}", itemMoreURL: "${item-2-read-more-url}", itemVideoURL: "${item-2-video-url}", itemInfographicUrl: "${item-2-infographic-url}" } //Item 3 daccordItems[2] = { itemOpen: "${item-3-open}", itemTitle: "The case for augmenting the legacy core", itemText: "

    Consider a bank that wants to launch new business models that are in some way decoupled from the existing business—a new line of business or a digital-only brand, for example. In situations like this, where there’s a high need for innovation and opportunity to take on more transformative initiatives without risking the legacy business, banks can look beyond simply modernizing their core platform. Choosing between an augmentation or replacement path raises the questions of risk and time.

    While technological improvements have made replacements less risky than a decade ago, overhauling the entire legacy platform is still very complex, with potential disruption to business operations while the change is underway. A bank’s ability and willingness to understand, adjust, and risk this disruption to its core business functions for several years will heavily influence whether it chooses to augment its core or undertake a replacement.

    Banks with a low appetite for risk, especially given the time horizon and investment required, may see value in augmenting their existing core with a new, next-generation core. In this model, the new core is purpose-built to offer new capabilities that the legacy core can’t provide and is typically based on cloud-native applications that are open, scalable, and extensible.

    In many cases, the bank will also have to evaluate its data strategy, which will be of a more complex nature. As discussed earlier, augmentation offers multiple future options. The new core can be used to stand up a separate line of business or new banking institution altogether. Or it can be used as a test-bed to launch new products and services, with a goal to migrate the legacy business over time once the new core platform is deemed stable.

    ", itemImage: "${item-3-image}", itemImageRight: "${item-3-image-right}", itemMoreText: "${item-3-read-more-text}", itemMoreURL: "${item-3-read-more-url}", itemVideoURL: "${item-3-video-url}", itemInfographicUrl: "${item-3-infographic-url}" }; //Item 4 daccordItems[3] = { itemOpen: "${item-4-open}", itemTitle: "The case for a full core replacement", itemText: "

    The final option brings us back to the legacy dilemma. A bank that doesn’t see a viable upgrade path to realize its business objectives may still choose to replace its entire legacy platform. This “all-in” approach, while fraught with risk, may still be attractive if living with the current platform is untenable. Additionally, the bank will have to factor in complex data considerations, such as their strategy for moving data from the legacy system to the new system of choice. It requires a focused, long-term view that could provide an advantage over competitors that take a slower, less risky approach.

    ", itemImage: "${item-4-image}", itemImageRight: "${item-4-image-right}", itemMoreText: "${item-4-read-more-text}", itemMoreURL: "${item-4-read-more-url}", itemVideoURL: "${item-4-video-url}", itemInfographicUrl: "${item-4-infographic-url}" }; //Item 5 daccordItems[4] = { itemOpen: "${item-5-open}", itemTitle: "${item-5-title}", itemText: "${item-5-text}", itemImage: "${item-5-image}", itemImageRight: "${item-5-image-right}", itemMoreText: "${item-5-read-more-text}", itemMoreURL: "${item-5-read-more-url}", itemVideoURL: "${item-5-video-url}", itemInfographicUrl: "${item-5-infographic-url}" }; //Item 6 daccordItems[5] = { itemOpen: "${item-6-open}", itemTitle: "${item-6-title}", itemText: "${item-6-text}", itemImage: "${item-6-image}", itemImageRight: "${item-6-image-right}", itemMoreText: "${item-6-read-more-text}", itemMoreURL: "${item-6-read-more-url}", itemVideoURL: "${item-6-video-url}", itemInfographicUrl: "${item-6-infographic-url}" }; //Item 7 daccordItems[6] = { itemOpen: "${item-7-open}", itemTitle: "${item-7-title}", itemText: "${item-7-text}", itemImage: "${item-7-image}", itemImageRight: "${item-7-image-right}", itemMoreText: "${item-7-read-more-text}", itemMoreURL: "${item-7-read-more-url}", itemVideoURL: "${item-7-video-url}", itemInfographicUrl: "${item-7-infographic-url}" }; //Item 8 daccordItems[7] = { itemOpen: "${item-8-open}", itemTitle: "${item-8-title}", itemText: "${item-8-text}", itemImage: "${item-8-image}", itemImageRight: "${item-8-image-right}", itemMoreText: "${item-8-read-more-text}", itemMoreURL: "${item-8-read-more-url}", itemVideoURL: "${item-8-video-url}", itemInfographicUrl: "${item-8-infographic-url}" }; //Item 9 daccordItems[8] = { itemOpen: "${item-9-open}", itemTitle: "${item-9-title}", itemText: "${item-9-text}", itemImage: "${item-9-image}", itemImageRight: "${item-9-image-right}", itemMoreText: "${item-9-read-more-text}", itemMoreURL: "${item-9-read-more-url}", itemVideoURL: "${item-9-video-url}", itemInfographicUrl: "${item-9-infographic-url}" }; //Item 10 daccordItems[9] = { itemOpen: "${item-10-open}", itemTitle: "${item-10-title}", itemText: "${item-10-text}", itemImage: "${item-10-image}", itemImageRight: "${item-10-image-right}", itemMoreText: "${item-10-read-more-text}", itemMoreURL: "${item-10-read-more-url}", itemVideoURL: "${item-10-video-url}", itemInfographicUrl: "${item-10-infographic-url}" }; daccordItems = $.fn.daccordScrubData(daccordItems,properties); //render html within fragID for (i = 0; i < properties.numberOfItems; i++) { //add html var html = dcomAccordionItemTemplate(daccordItems[i]); $(accordionID).append(html); //add youtube vids if present if (daccordItems[i].itemVideoURL) { //check if one trust group 4 is enabled || if one trust isnt active display anyway if ((typeof OnetrustActiveGroups === 'undefined') || (OnetrustActiveGroups.indexOf(",4,") >= 0)) { $(accordionID + ' #' + properties.fragId + 'collapse' + daccordItems[i].itemNum + 'vid').player({ video: daccordItems[i].itemVideoURL, playerVars: { controls: 2, modestbranding: 0, rel: 0, color: 'white', showinfo: 0, theme: 'dark', autoplay: 0 }, events: { end: daccordVidEnd, play: daccordVidStart, pause: daccordVidStop } }); //show container ({{fragId}}collapse{{itemNum}}vid-cont) $(accordionID + ' #' + properties.fragId + 'collapse' + daccordItems[i].itemNum + 'vid-cont').show(); //hide fallback ({{fragId}}collapse{{itemNum}}vid-fallback) $(accordionID + ' #' + properties.fragId + 'collapse' + daccordItems[i].itemNum + 'vid-fallback').hide(); } } } //set open states if (properties.openItem > -1) { daccordSelected = (properties.openItem - 1); //set item index (minus 1) $(accordionID +' .daccord-collapse').eq(daccordSelected).slideToggle( daccordSpeed ); if (!properties.expandCollapseAll) { $(accordionID +' .daccord-header').eq(daccordSelected).toggleClass('daccord-header-open'); } else { $(accordionID +' .daccord-header').eq(daccordSelected).toggleClass('daccord-header-icon'); } } //set css options within fragID var css = accordionID + ' .daccord-header a {background-color: ' + properties.titlebarBackgroundColor + ' }'; css += accordionID + ' .daccord-header a {color: ' + properties.titlebarFontColor + ' }'; css += accordionID + ' .daccord-header-icon a { background-color: ' + properties.titlebarActiveBackgroundColor + ' }'; css += accordionID + ' .daccord-header-open a { background-color: ' + properties.titlebarActiveBackgroundColor + ' }'; css += accordionID + ' .daccord-header .daccord-header-bar-icon:after { color: ' + properties.titlebarBackgroundColor + ' }'; css += accordionID + ' .daccord-header-icon .daccord-header-bar-icon:after { color: ' + properties.titlebarActiveBackgroundColor + ' }'; css += accordionID + ' .daccord-header-open .daccord-header-bar-icon:after { color: ' + properties.titlebarActiveBackgroundColor + ' }'; $('head').append('

    '); //set click events //accordions $(accordionID + ' .daccord-header').on('click',function() { var index = $(this).parent().prevAll().length; //stop (pause) all vids var daccordVidPlayers = $(accordionID + ' iframe.daccord-video'); $.each(daccordVidPlayers, function () { var daccordStopVid = YT.get($(this).attr('id')); daccordStopVid.pauseVideo(); }); if (!properties.expandCollapseAll) { //close open if (daccordSelected > -1) { $(accordionID + ' .daccord-collapse').eq(daccordSelected).slideUp(daccordSpeed); $(accordionID +' .daccord-header').eq(daccordSelected).removeClass('daccord-header-open'); $(accordionID +' .daccord-header').eq(daccordSelected).removeClass('daccord-header-icon'); } if (daccordSelected != index ) { //open selection - add selected state; daccordSelected = index; $(accordionID +' .daccord-collapse').eq(daccordSelected).slideDown(daccordSpeed); $(accordionID +' .daccord-header').eq(daccordSelected).addClass('daccord-header-open'); $(accordionID +' .daccord-header').eq(daccordSelected).addClass('daccord-header-icon'); } else { daccordSelected = -1; } } else { //set selected if collapse all daccordSelected = index; $(accordionID +' .daccord-collapse').eq(index).slideToggle( daccordSpeed ); $(accordionID +' .daccord-header').eq(index).toggleClass('daccord-header-icon'); //check number of items open/closed and set ui //daccord-header-icon var daccordOpenItems = $(accordionID +' .daccord-header-icon').length; //expand if 0 if (daccordOpenItems == 0) { $(accordionID + '-controls .daccord-expandcollapse li').eq(0).show(); $(accordionID + '-controls .daccord-expandcollapse li').eq(1).hide(); } //collapse if all opens if (daccordOpenItems == properties.numberOfItems) { $(accordionID + '-controls .daccord-expandcollapse li').eq(1).show(); $(accordionID + '-controls .daccord-expandcollapse li').eq(0).hide(); } } }); //CTA analytics var elementClicked = false; $('#daccord-' + 'core-banking-digital-transformation-strategy' + " a.daccord-header-bar").click(function(e) { try { var FragType = "FRG-048"; var FragID = "core-banking-digital-transformation-strategy"; var ActionType = "click"; var ctaText = e.currentTarget.textContent.replace(/\s+/g, '-'); s.linkTrackVars = "prop1,prop2,prop3,prop4,prop5,eVar72"; s.eVar72 = PubID+FragType+":"+ActionType+":"+ctaText+":"+FragID; s.eVar72 = s.eVar72.toLowerCase(); s.prop1 = sc_country; s.prop2 = sc_language; s.prop3 = sc_country + ";" + sc_language; if(elementClicked != true) { s.linkTrackEvents = "event71,event72,event23"; = "event71,event72,event23"; elementClicked = true; } else { s.linkTrackEvents = "event71,event23"; = "event71,event23"; }, "o", s.eVar72); } catch(error) { console.error(error); console.log('analytics suite unavailable?'); } }); // hide html frag title/description var hideFragTitleDesc = "${hide-title-description}"; if (hideFragTitleDesc == "title") { $(accordionID).closest(".htmlfragment").find("h3.secondary-headline").remove(); } else if (hideFragTitleDesc == "description") { $(accordionID).closest(".htmlfragment").find("h3.secondary-headline").siblings("p").remove(); } else if (hideFragTitleDesc == "yes" || hideFragTitleDesc == "true" || hideFragTitleDesc == "both") { $(accordionID).closest(".htmlfragment").find("h3.secondary-headline").siblings("p").remove(); $(accordionID).closest(".htmlfragment").find("h3.secondary-headline").remove(); } // add top padding back for topic pages var templateType =; if (templateType == "Deloitte_Full_Topic_Page") { $(accordionID).closest(".standard-white-component").css("padding-top","20px"); } }; daccord(); });

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