Winning in the

New Banking Era

High performance DNA: Next generation
core banking, a catalyst for success

Table of Contents
Introduction

The new paradigm

Universal banking high performers DNA

Next generation core banking: a catalyst

for success

16

Whats next?

19

2 | Winning in the New Banking Era

Introduction

Its no overstatement to say that in the last few years banks have
experienced a more challenging market than any in living memory.
And for many the pressure is still on. They need to find new ways to
reconnect with their customers and rebuild their trust. There really is
no going back.
But in the race to the future some banks are taking a clear lead. Our work
with these leaders around the world shows us that while each of them is
different, they also share some common characteristics and principles that
have allowed them to move ahead to profitable growth.
In this paper, we draw out the lessons their superior performance can
offer to others in their own search for a return to growth. We take a
close look at the strands of high performance DNA that we see running
through all their businesses. We examine how their focus on the customer,
their commitment to efficiency, and targeted investments in building a
technology platform for growth are all helping them to prosper.
I hope you find the following an interesting and stimulating read. Id
welcome your feedback and would be delighted to discuss with you any
of the issues we raise.
Sincerely,

Juan Pedro Moreno

Managing Director, Accenture Core Banking Services

The new paradigm

The legacy of the financial and

economic crisis is still severely
impacting banks performance
across the world, especially
in more mature markets. Banks
are still subject to significant
uncertainty and their customers
trust and loyalty is at an all
time low.

In response, many banks have focused

intently on cost management. However,
new market paradigms show that cost
reduction alone is not enough. Lack of
economic growth is questioning the viability
of certain business models in some markets.
In addition, a broader intervention by
the public sector with a huge wave of
regulatory reforms, requirements for greater
capital reserves along with restrictions on
funding will lead to a new, lower level of
profitability by constraining balance sheets.
Further, drastically reduced customer
loyalty, and a new technological ecosystem

and competitive threats, all serve to

increase the strength of the headwinds
confronting all banks.
Banks need to rebuild profitability and
reboot shareholder value by driving growth
in their core businesses through innovative
products and services, attracting and
retaining customers, optimizing pricing,
managing risks effectively, and all while
continuing to cut costs. At the same time,
some banks will explore M&A opportunities
or divest non-strategic businesses (see figure 1).

Figure 1. ROE evolution (retail and commercial banks)

-2%
-1%

-1%

26%1

2%
-1%

1%

1%+

1-5%

27+%

3%

-2%
19%

-5%

-6%
3%

1%

1%+

1-5%
15+%

5%

-6%
-2%
-3%
High
Higher
performer capital
ratio
ROE
2000-2007

Shrink
balance
sheet

Higher
cost of
funding

Developed market banks in crisis

Reduced
fee
income

NPL
provision
increase

4%
Post crisis
base case

Strategic
cost
reduction

Robust
customer
management

Pricing
Effective
optimiza- risk
tion
management

Divestures/ Post crisis

inorganic strategic
growth
options case

Developing market banks in more resilient economies

Source: Accenture Banking 2012 research

1
Non-cumulative model based on peer set of large US, European and Emerging Market banks; profitability rebuild excludes impact of potential NPL recovery
4 | Winning in the New Banking Era

But while they understand what to do, how

to achieve these goals is more challenging.
Thats largely because, for many, their
commercial and operating models as well
as technology platforms are, bluntly, no
longer up to the job.

In marked contrast, in spite of the impact

on the balance sheet and P&L from new
regulations, players (see figure 2) that had
developed a high performance Universal
Banking model are clearly outpacing the
pack. They have been able to master a
distinctive customer value proposition
balanced with efficiency on the inside
and masterful execution.

Banks such as BBVA, Santander,

Commonwealth Bank of Australia,
Westpac, Nordea, Svenska Handelsbanken,
Bank of Nova Scotia, Royal Bank of Canada
and National Bank of Canada are all
good examples.

Figure 2. Developed market banks: State aid, profitability and retail operations
(2007-2010 average)
Commonwealth Bank of Australia
20

Royal Bank of Canada

Banks receiving state aid

15

Westpac

Universal
Banks

No state aid
State aid repaid
State capital injection

Scotia Bank
BBVA

Svenska Handelsbanken

Santander

National Bank of Canada Nordea

10

ROE
Average
20072010

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

85

90

95

100

% of Retail and Commercial Banking Revenue

-5

-20
Source: Based on analysis of Top 50 Developed Market Banks by Market Cap; Accenture research analysis on Capital IQ and Bloomberg data

Universal banking high

performers DNA
Accentures extensive research
and work with leading banks
around the worldand the
insights these providehas
enabled us to distil key
attributes and capabilities
that propel high performance
banks to the front of the
pack. We have been able to
identify seven key strands
of high performance DNA
(see figure 3) that create
a foundation for achieving
growth and reigniting
shareholder value.

1. High performers strive for a customer

centricUniversal Banking model with
a focus on core customer groups and
deep relationships.
Aside from the resilience of a few wholesale
banking-oriented players, it is banks with a
clear and diversified retail and commercial
business mix that have reinforced their
competitive position in the aftermath of
the financial meltdown.
Their organizations pivot around customer
segment management rather than product
management, ensuring strong connections
between different lines of business.

Figure 3. High performance universal banking anatomy

7. Leading
edge
technology
6. Ability
to export
the model

1. Customer
centric Universal
Banking model

High
Performance
Bank DNA

2. Multichannel
distribution
model

5. Strong
3. Industrialized
capital
operating
management
model
4. Prudent
discipline
risk
management
policies
Note: Superior talent management is an additional attribute of high performance DNA not covered in this report.

6 | Winning in the New Banking Era

Their relationship model takes a holistic

approach to customer needs in order
to build prime provider relationships.
Product offerings are based not only on
client segments but are also specifically
tailored to specific customer profiles/
needs, while the sales force is supported
by advanced CRM tools. These banks also
deploy sophisticated pricing models based
on customer lifetime value and behavior
profiles (risk, channel, propensities), and a
fee model linked to the value added services
customers are willing to pay for. Finally,
they have configured their sales and service
approach with simplicity, convenience and
transparency as the key guiding principles.
As a result, these players boost profitability
and loyalty. For example, BBVA, Royal Bank
of Canada and Wells Fargo enjoy higher
cross selling ratios (above 4) and lower
rates of customer attrition (less than five
percent), significantly exceeding market
average standards. They also achieve a
remarkable percentage of first contact sale
ratios1 and rapid time to market to launch
new products or services.
1 Number of conditional offers provided to the customer
during the first commercial contact over number of
customer product applications.

2. High performers demonstrate that

multichannel clients can be twice as
profitable and exhibit greater loyalty.
Proximity, accessibility and innovation are
the trademarks of a real multichannel
distribution model that delivers a true and
consistent 24x7 online/real-time customer
experience (e.g., access to a 360 single
and integrated view, real-time processing,
etc.) with seamless customer interactions
fully orchestrated across all channels
as Commonwealth Bank of Australia is
able to do after its recent core banking
transformation program.
Branches maintain their role as the center
of high value added customer interactions,
but players like Santander focus on
proactive sales and more profitable services
to maximize employee productivity. They
shift administrative tasks to central back
offices or the most efficient channels, and
use multiple branch formats and layouts to
dynamically address market potential and
customer needs.
In consequence, their sales-oriented branches
operate with more than two-thirds of their
time available for commercial purposes,
delivering far higher employee productivity2.

In addition, high performers place particular

emphasis on innovation. They build
advanced self-service capabilities, especially
around ATM and Internet functionalities,
and are investing in the development of
mobile banking and new devices that
enhance customers experience and boost
their engagement.
Take Nordea, for example. Its customers can
start a purchase through one channel and
close it from another. More than 70 percent
of product offerings can be purchased
online while 20 percent of sales are already
performed through this channel. Nordea
is also embracing social platforms as a
new source of business intelligence and to
deliver products and services.

Finally, high performers are

investing in data capture,
management and analytics
capabilities to multiply their
number of interactions per
customer, achieve a more
seamless and personalized
customer experience, sell
multiple products during each
sales interaction (better sales
ratio), and provide ubiquitous
access through an optimized
channel mix, cost-efficiently.

Finally, high performers are investing in

data capture, management and analytics
capabilities to multiply their number of
interactions per customer, achieve a
more seamless and personalized customer
experience, sell multiple products during
each sales interaction (better sales ratio),
and provide ubiquitous access through an
optimized channel mix, cost-efficiently.

2 Average operating income per employee is almost twice

peer group average.

3. High performers have been early adopters

of industrialized operating models in
order to deliver best in class cost operating
performance balanced with excellent
customer service.
Leading banks today have cost:income
ratios of 45 percent and below, while the
industry average in mature markets is close
to 60 percent. Yet many of the leaders also
have highly productive customer models.
The target is typically a choice between
three operating model end-states:
manufacturing focus (efficiency champions),
business-line centric (category killer) or
distributor. However, regardless of the
specific end state, high performers, such
as BBVA or Santander, share common best
practices. These include:
Separation between distribution and

servicing, where distribution is organized/

led by segments with a horizontal
operating view rather than a vertical
product management approach.
Centralized service in consolidated

manufacturing centers, organized

according to functions, with multiproduct/segment capabilities instead
of product-siloed back offices.

Lean processes are standardized,

streamlined, digitized, automated

and posted in real time, enabling
paperless processes and fewer manual
interventions.
Structured to ensure control and

transparency and supported by an

audit trail and automated authorization
management capabilities together
with strict compliance and online
validation of errors.
Transactions are managed according to

their value, driving customers to the most

efficient channel.
Players like BBVA are increasing

delocalization of functions, supported

by middleware and digitalization tools
to facilitate workflow control and well
designed, efficient processes and growing
use of business process outsourcing (BPO)
(see sidebar).
Analytical information providing visibility

of the granular drivers of operational

performance.
Proactive management of complexity

across the organization.

8 | Winning in the New Banking Era

BBVA operating model

BBVA is implementing a threelayer operating model for retail and
commercial back office operations
in which strategic functions are
retained at bank level (5 percent),
high value activities are also kept
internally and performed sometimes
by a segregated subsidiary (20-30
percent), while the rest of non-core
functions (up to 60-70 percent of
total) are outsourced to strategic
partners. Depending on the starting
point, these initiatives are expected
to deliver 30 to 40 percent or more in
savings during a 10-year timeframe.

Moreover, players with a worldwide

footprint manage retail and commercial
banking businesses globally through:
Product and/or segment global units,

fostering best-practice cross-fertilization

via competence centers or coordination
through processes, with hierarchical
reporting over or shared responsibility
with the business areas/ geographies.
Business, operational and IT corporate

models, customized to local needs.

Global operations centers of excellence,

beyond traditional finance and accounting,

procurement or HR activities, to support
vertical lines of business such as cards
and payments, asset management,
foreign trade, or corporate functions
like fraud detection and prevention.

High performers achieve best in class

operational efficiency ratios:
They reduce management overheads,

keeping levels of non-branch personnel

to 20 percent or below and fewer than 5
percent of total headcount in back office
operations.

3 Once and done transactions (Account maintenance and

inquiries, monetary transactions, payments, etc.). Non-STP
transactions are related to Legal Requirements, Corporate
Security requirements, manual exception processing, etc.
4 Teller typical transactions migration ratio to alternative
channels has increased 3 times throughout 2005-2010,
above 90 percent in the case of cash withdrawals,
accounts or cards inquiries, etc.

They achieve excellent turnaround times:

e.g., originating a new current account

in under 20 minutes, taking only 3-9
days to process a mortgage, same day
processing of credit cards, and between
less than one day to a maximum of two
days to complete a consumer loan.
Approximately 75 percent of servicing

transactions are started and completed

in one go (once and done3) and high
performers migrate a high proportion
of administrative tasks to non-branch
channels4.

4. Despite the economic crisis, and the

collapse of real estate prices in some
markets, high performers have applied
prudent risk management policies
to ensure low bad-debt ratios, strong
coverage for provisioning, along with
low reputational and operational risk.
High performers separate risk functions
from lines of business while maintaining
strong governance to coordinate risk and
the business (e.g., through joint committees,
sales force/risk analyst alignment,
etc.). Furthermore, they segregate risk
underwriting circuits by business segment
(retail, commercial), pursuing business sales
process optimization via:

Extensive use of advanced analytic engines

An end-to-end view of the risk cycle

Proactive and online (or near real-time)

at the level of customers, policies and

systems, reinforcing early detection,
going beyond a traditional approach that
focuses primarily on underwriting and
second on collection.
Extensive decentralization of credit risk

authorization at the point of sale for

certain amounts/segments, with systemcontrolled authorizations. Best practices,
such as those at BBVA, show 65 percent
of applications are approved by frontline staff and management, significantly
reducing origination times.

10 | Winning in the New Banking Era

and tools have not only enhanced the

risk function but also sales performance
through, for example, the use of auto
decisioning rules, preapproved loans,
a holistic 360 view of customer risk/
commercial information, and risk-based
pricing tailored to each customer.
Paperless risk underwriting process.

fraud validation.
Sale force personnel are the first level

of risk analysis, with bad debt ratios used

as a key scorecard indicator for Front
Office personnel.

5. Robust capital management discipline

is a key pillar for high performers,
combining high quality capital, appropriate
liquidity and funding positions, with
a proven successful track record of
inorganic growth.
They bring together a stable organic capital
growth engine with new innovative sources
(e.g., dividend reinvestment plan).
Functionally, they can best be characterized
as robust and on time.

And on time because they:

Generate appropriate information to

analyze historical data to help configure

accurate early warnings.
Use forecast results to inform decision-

making.
Robust, because their:
Capital management function is

embedded in the annual budgeting

and rolling forecast, to tackle the
Expected to be wrong principle.
Capital planning, capital consumption

and risk and finance processes are

managed in an integrated way. Hence,
an enhanced understanding of the capital
allocation and consumption of different
products and business units, which
improves management of risk-weighted
assets and returns on capital.

Incorporate advanced predictive real-

time analytics in their day-to-day

management processes.
Act with speed and confidence.

Those banks with robust capital strength

and capital management discipline, together
with a sustainable ROE, are likely to be
rewarded with reduced funding costs.

11

6. The success of the high-performance

Universal Banking model has been
demonstrated by the ability to export
(replicate) the model to global markets.
High performers have a diversified business
and geographical mix, straddling developed
and emerging markets. The Spanish banks
BBVA and Santander are a particular case
in point. They both now generate more than
50 percent of their net profit from foreign
operations, with a broader international
presence in emerging markets than their
peer group.
For them, a highly industrialized operating
and IT model has played a vital role in
extending their customer-centric approach
into new global markets.
They have gradually evolved from a single
geography to a multi-local operating model.
They have deployed a common corporate
operating model that makes increasing
use of strategic BPO partners, global
policies and multi-geography back office
operations and centers of excellence. All
these have fostered synergies and the
cross-fertilization of best practices while
retaining local innovation and customization
in line with specific regulatory or business
culture considerations.

12 | Winning in the New Banking Era

In conjunction with that approach, they

have used a standard and scalable IT model,
based on global IT governance, global
hardware infrastructure, regional software
factory hubs, regional IT retail banking
platforms and global platforms for treasury
and some wholesale and global retail lines
of business.
As a result, BBVA, for example, has
successfully exported this way of doing
banking across more than 32 countries
throughout the world, lowering its Groups
cost-to-income ratio by 10 percentage
pointsdown to 43 percent in the last
decadedespite recent acquisitions.
Santander has demonstrated that the model
can be made to work not only in Latin
America but also in developed markets
such as Continental Europe and the UK.
For example, since entering the UK market
in 2005 through 2009, Santander UK
has increased revenues by approximately
15 percent on a yearly basis, even when
eliminating the effect of further acquisitions.
The cost-to-income ratio for Santander UK
was 39 percent at the 2010 year-end, down
from 70 percent five years ago. BBVA has
lowered theirs 10 percentage points in the
last decade, down to 43 percent.

The cost-to-income ratio for

Santander UK was 39 percent
at the 2010 year-end, down
from 70 percent five years ago.
BBVA has lowered theirs 10
percentage points in the last
decade, down to 43 percent.

13

7. Technology is a crucial building block

supporting the successful Universal
Banking customer centric model.
At the center of the model is
the core banking platform:
the capability to process
daily customer and banking
product operations, and
manage customer information
and their accounts. During
the 90s and 00s, high
performers such as BBVA
and Santander focused their
investments on change the
bank versus run the bank,
shaping a generation of highly
automated, scalable and
flexible customer centric
core banking platforms.

14 | Winning in the New Banking Era

These core platforms adopted innovative

principles such as:
Customer centricity, with a unique

customer information database available

and integrated enterprise-wide for
multiple uses, personalizing product
offerings; economic capital risk-based
pricing; or underwriting analysis at a
one-to-one client level.
Business process orientation, seamless

integration between product applications,

covering the entire lifecycle, from
set up to servicing and with process
standardization as a key feature.
Anytime anywhere, 24x7 availability

through any channel providing similar

functionality to serve all channels with
no duplication of data or functions.

Figure 4. From spaghetti to lasagna

From complex and unmanageable
IT solution landscapes

...towards a flexible, scalable and

componentizable technological solution.
Data warehouse

Channels platforms

Process automation

Once and done straight through

processing, with a high degree of

automation and real-time processing
of all items, ensuring immediate updates
to positions, providing a superior customer
experience, and reducing exceptional
cases and any subsequent back office
rework. This also lowers operational risk
as a result of easier control functions,
online access to updated data and
automated validations, an audit trail
and advanced authorization management
capabilities to meet audit and compliance
requirements and to enhance transparency.
Simplification, facilitating lean processes

with horizontal applications (origination,

product factory, collateral management,
etc.) supporting different products and
lines of business, hence avoiding function
duplication, with a consistent userinterface and seamless integration of
all applications based on the same
technical and architectural principles
(see figure 4).

Process monitoring

Message integration platform

Events
Message integrator
Repository

Scalability, as IT processes enable system

consolidation among business units,

entities, countries, etc.
Multi concepts, with multi-product,

multi-language, multi-currency, multientity, multi-country functional coverage.

These foundational investments freed up
resources during the first decade of the
new millennium to work on high value
added applications (Integrated Desktop,
CRM, Risk, MIS, Analytics, Multichannel
Architecture, Digitalization and Workflow,
etc.), seamlessly integrated with the core
banking platform that contributed to costefficient growth.

Synchronous
orchestration

Process rules

Server platform (mainframe)

Core banking
applications
Business rules

Server platform (open)

Synchronous
orchestration

Process & rules platform

Core banking
applications
Business rules

As a result, while in some comparable

mature banking markets peers were
focusing their IT expenditure on day-today platform maintenance or replacement,
leading edge technology has helped the
high performers to achieve a significant,
cost efficient, leap of scale, excelling peers
in terms of technological and operating
efficiency5, characterized by:
Strong IT quality ratios: 50 percent

discretionary6 and 60 percent flexibility7

expenditure ratios.
Higher business return from IT spending,

with an average of a 4 percent IT

spending over revenues.
Low IT cost8 per transaction: 0.05.

High performers unlock this leading edge

core functionality for their customers by
providing:

5 Source: Accenture IT Cost Study 2010 (Spanish

Banking Sector. Average 2007-2010).

Advanced alternative channels (especially

6 Discretionary ratio: IT FTEs allocated on new

applications or infrastructures over Total IT FTEs.

online banking, ATMs, and now mobile

banking) embedded in an integrated
multi-channel architecture.

7 Flexibility ratio: Variable IT expenses over total IT

expenses.
8 Defined as the cost of technology required to process
a basic banking operation.

Strong and efficient leverage of

outsourcing (infrastructure or application

management) that facilitates IT expense
management and control.

15

Next generation core banking:

a catalyst for success
Cost cutting is no longer
enough to succeed in
tomorrows world. Instead,
the IT function needs to work
shoulder-to-shoulder with
the business to support the
growth agenda.
CIOs must no longer focus solely on
excellent execution, but need to balance
this with agility, to respond promptly to a
changing business agenda, and innovation,
playing a partner or incubator role rather
than being an order taker or, at best, a
fast follower.
In this scenario, CIOs attention is moving
beyond cost reduction towards customer
experience, speed to market for new
offerings, analytics, and distribution
channel enhancements, taking advantage
of several levers that will shape the
technology agenda in the near future:
Data as a platform, distributed wherever

it is needed.

Reflexive and appropriate IT security

that identifies and prioritizes gaps and

vulnerabilities.
A risk-based approach to data privacy.
Social platforms to drive business

intelligence and create new customer

channels.
User experience becomes the paramount

driver of new products, services and

marketing.
Leveraging these new technologies, and
driving new business requirements, a
resurgence of core banking transformation
programs is to come. This is not only
because some players see their core
banking systems as a significant obstacle
to achieving their strategic business
objectives. High performers, too, realize
they need to evolve to achieve lasting
profitable growth.
Nevertheless, embarking on a core banking
transformation is a complex decision.
Banks moving in this direction perceive
this strategic initiative with a return on
investment beyond just cost reduction.

Analytics at the heart of achieving

enhanced customer insight and more

efficient business processes.
Cloud computing creating value higher

up the business through applications and

services.
Service-centric rather than server-centric

architecture to create flexible, responsive

and agile business models and capabilities.

16 | Winning in the New Banking Era

The business rationales that trigger core

banking transformations vary, and might
include:
Response to new business growth

strategy, typically requiring substantial

changes to the business operating model;
it may involve renewal or replacement of
core systems.

Post merger integration, determined

by the need to deliver synergy benefits;

normally entailing migration onto one of
the existing technology architectures.
Obsolete technology hindering the

business, and creating risk or sometimes

when a business buys an operating
model; imply a core system replacement.
Right-size and right-shape, to reduce

the scale of the operating model; where

a superior customer experience coupled
with product, process, data and technology
simplification is at the core.
Depending on the business trigger, size
and market mix, players will follow
different approaches. For example, big
banks in mature markets usually follow
a gradual (by components) core banking
journey,while small banks tend to opt for
global transformations, often leveraging
a utility approach through ASP, SaaS or
Cloud services.
In any case, market specifics are a critical
driver. For example, large Chinese banks
with very fragmented/compartmentalized
operating models tend to adopt a codevelopment or custom development
approach to tune their IT platform to fit
their models needs.

Overall, this new generation of core

banking solutions will improve pre-existing
capabilities, introduce new innovations
and drive qualities such as flexibility and
scalability (see figure 5). It will achieve
this by:
Decoupling of:

- Distribution and manufacturing, with

configurable common services and
functions to serve all lines of business,
channels and segments, with no
duplication of data or functions.

Figure 5. New core banking platform generation

Current

Enhancements and Innovations

Customer centric

Anytime,
anywhere

Decoupling
manufacturing and
corporate core
Enterprise/
Process

Once and done

processing
Business
process oriented

- Manufacturing and corporate core

(accounting, MIS, risk management,
analytics), with an integration layer
that ensures information granularity,
consistency and traceability.

Simplification

Multi-layered architecture that decouples

Multi-concepts

Functional

Multi-layered
architecture

granularity for sharing and reusability,

cross-channel, cross-line of business,
cross-segment, cross-product, etc.
Platform and database agnostic, allowing
multiple combinations to support the
banks different needs.
Integration of rules engines to enhance

systems flexibility and advanced process

management tools: BPM, image capture,
document management.

Applications

Advanced
componentization
and granularity

Technical

Scalability
Platform
and database
agnostic

processes, functions, applications and

technicalities.
Advanced componentization and

Decoupling
distribution and
manufacturing

Integration of
rules engine,
BPM and process
flow tools

In summary, technology
will be a key pillar supporting
the banking industry, to grow
organically and inorganically/
domestically and internationally
at an efficient level of
cost, hence fostering shareholder value.

All these enhancements will promote

customer centricity allowing product and
service differentiation, as well as a flexible
and efficient operating model decreasing
technology and operations costs.
17

18 | Winning in the New Banking Era

Whats next?

So whats required to emerge

out of the crisis as a winner
and deliver sustainable
profitable growth? One thing
is clear: sticking to past
formulae wont work.
To escape from the current value trap,
high performers will continue to undertake
holistic transformation programs with
innovation playing a major role.
Banks that emerged successfully from
previous downturns were not necessarily
those that made the deepest cuts. Instead,
they focused on optimizing and reinvesting
immediate savings into strategic areas in
order to be in the best position for growth
on the upswing.
Business levers will concentrate on enhancing
the distribution model, specifically around
two axes: customer centricity and the
potential of new and emerging devices
to deliver true multichannel experiences.
High performers will enable customers to
personalize autonomously and proactively
their own product bundle offerings, pricing
and fee models and service levels.

At the same time, they will continue evolving

their business and operating models and
underlying products, process, and data
models to reduce complexity. To this end,
operating models will have to embed two
key principles, simplification and flexibility,
to drive lean organizations.
To make it work, all of the above will have
to be supported by the new technology
wave that is rapidly reshaping the way
businesses and customers interact and
deploy technology. This will be shaped
around trends like cloud computing,
service-centric architecture, IT security
and data privacy, user experience, social
platforms or data accessibility and
analytics.

Banks that emerged successfully

from previous downturns were
not necessarily those that made
the deepest cuts. Instead, they
focused on optimizing and
reinvesting immediate savings
into strategic areas in order
to be in the best position for
growth on the upswing.

On top of that, a new generation of core

banking IT solutions is expected. This will
improve existing capabilities and bring
new innovations to provide the degree
of flexibility, simplicity, ubiquity and
scalability that customers, regulators
and all stakeholders will require in the
new normal.

19

About Accenture
Accenture is a global management consulting,
technology services and outsourcing
company, with more than 244,000 people
serving clients in more than 120 countries.
Combining unparalleled experience,
comprehensive capabilities across all
industries and business functions, and
extensive research on the worlds most
successful companies, Accenture collaborates
with clients to help them become highperformance businesses and governments.
The company generated net revenues
of US$25.5 billion for the fiscal year
ended Aug. 31, 2011. Its home page is
www.accenture.com.
Accenture Core Banking Services, a business
service within Accentures Financial Services
operating group, has helped design and
implement core banking systems for more
than 200 institutions worldwide. Alnova
Financial Solutions, part of Accenture
Software, Accentures dedicated software
business, is a leading core banking solution
with more than 100 clients in more
than 20 countries, including many of
the worlds largest and most successful
financial institutions. To learn more,
visit www.accenture.com/corebanking
or www.accenture.com/bankingsoftware.

Copyright 2011 Accenture

All rights reserved.
Accenture, its Signature, and
High Performance Delivered are
trademarks of Accenture.