凯捷+2023年世界云报告+–+金融服务-英

WorldReportSeries2023

RESEARCHINSTITUTE

CloudinFinancialServices

ISYOURCLOUDJOURNEYTAKINGYOUWHEREYOU

NEEDTOGO?

CREATEBUSINESSVALUEINANINNOVATION-POWEREDFUTURE

2

WorldCloudReport-FinancialServices2023

CONTENTS

Foreword

3

Executivesummary

4

It’snotaboutcloud,butcloud-enabled

businessgrowth

Composableplatformsareinstrumentalto

5

meetingbusinessneeds

A

neffectivecloudmigrationroadmap

1

2

createsbusinessvalue

19

Inconclusion

2

7

Methodology

2

8

PartnerwithCapgemini

29

WorldCloudReport-FinancialServices2023

3

FOREWORD

Thefinancialservices(FS)industryhasadoptedthecloudaspartofitsdigitaltransformationtoenablesuperiorcustomerexperience(CX),reducetechnologydebt,individualizeservices,improveagility,catalyzeinnovation,andfacilitatetheadoptionofnewtechnologiessuchasgenerativeAI.Ascloudstrategiesandinvestmentsreachexecutiveagendas,financialinstitutionsareleveragingtheadvantagesofcloud-enabledcustomerexperiencestoremaincompetitive.

InthisinauguralWorldCloudReport-FinancialServices,weaimtoofferacomprehensiveperspectiveoncloudmaturityanditsprofoundimpactonfinancialservices.ThereportidentifieshowFSsubdomainsmanagecloudadoption,includingcommonchallengesduringdeploymenteffortsfocusedonCXimprovement,dataresidency,datasovereignty,orcloudregulatorycompliance.Withaconfluenceofexpertiseinfinancialservicesandcloudtechnology,andlong-termrelationshipswithtrustedcloudproviders,wewerewell-positionedtocreatethisglobal-viewreport.

Cloud-basedplatformsenablerobustcustomersatisfaction,innovation,productivity,andscalability.It’snotjustaboutcloudmigrationbutthecustomerexperienceandoperationalexcellenceitmakespossible.Whilethecloudwillconstantlyundergoevolutionanddisruption,valuecreationwillremainconstant.WehopetheWorldCloudReport-FinancialServices2023benefitsyourtransformationjourneysanddrivesinnovationthatbolstersbusinessvalue.

Enjoytheread.

RaviKhokhar

GlobalHeadofCloudforFinancialServices

Capgemini

4

WorldCloudReport-FinancialServices2023

EXECUTIVESUMMARY

91%

ofrespondents

indicatedcloud

isanenabler

catalyzinggrowthinfinancialservices

Thefinancialservicesindustrytodayisexperiencingvolatilityspurredbyongoinginflation,interestratehikes,andrecoveringstockmarkets.Toaddressthesemarketdynamicsandmaintainbusinessgrowth,financialfirmsarestrategicallyembracingdigitaltransformation.Adoptingcloud-enabledsolutionsduringtheirtransformationjourneyisnowbecomingessentialtogainingacompetitiveadvantage.

IT'SNOTABOUTCLOUD,BUTCLOUD-ENABLEDBUSINESSGROWTH

Morethan80%ofthefinancialservicesindustryexecutivessurveyedforthisreportagreethatfirmscanovercomebusinesschallengesandunleashgrowththroughsuperiorcustomerexperienceandoperationalexcellence.Andtherightplatformiscriticalforthescalability,flexibility,productivity,innovation,andagilityrequiredtomeetindustryandcustomerdemands.

Cloudasanenableriscatalyzinggrowthforfinancialservicesfirms,as91%ofourrespondentsindicated.New-ageplayersessentiallyborninthecloudleveragedthiscompetitiveadvantagetofueltheirinitialsuccessesandwincustomermindshare.Now,incumbentbanksandinsurersarefullyengagedintheirowncloudjourneys.Acrossthefinancialservicessector,cloudmigrationhasrisensignificantlyfrom37%inAugust2020to91%inAugust2023.a

Whilenon-coreapplicationshavemostdefinitelyexperiencedacloudmigrationupsurge,manyfirmshavenotmovedaconsiderableportionoftheircoreapplicationstoacloud-computingenvironment.Instead,manyoptfora“liftandshift”modelthatcanhindercloud-basedsystems'fullscalabilityandflexibilityadvantages.

COMPOSABLEPLATFORMSAREINSTRUMENTALTOMEETING

BUSINESSNEEDS

Acomposableplatformwillhelpfinancialservicesfirmsredefineprocesses,movetocloud,andintegratecloud-enabledcustomer-facingapplicationsandcoreback-endfunctionalities:operationalimpactandimprovedcustomersatisfactionwillbetheresult.Thisplatformapproachleveragespre-builtcomponentsspread

acrosslayersoveralegacyorcloud-enabledcoreengine.Thishelpstoincreaseflexibility,improvedigitalcollaboration/integration,enhancescalabilitythroughmodularmechanisms,realizecostefficiency,andenrichcustomerexperience.

Aphasedapproachhelpsfirmssuccessfullyaddplatformcomponentsandprioritizefunctionalitiesforcloudmigration;whileriskmanagementfunctionsareapriorityforbanks,policyservicingandmanagementandcustomerrelationshipmanagementareessentialforinsurers.However,asfinancialservicesfunctionalitiestransform,somefirmswillfacechallengesarounddataandcostoverrunsduringcloudmigration.

ANEFFECTIVECLOUD

MIGRATIONROADMAPCREATESBUSINESSVALUE

Acomprehensivecloudstrategyandroadmaparecriticaltoovercomingcloudmigrationchallengesandenablingbusinessgrowthforfinancialservicescompanies.Asafirststep,consideranend-to-end,phasedapproachtodigitaltransformationinfinancialservices;thisstartsbyprioritizingthekeybusinessesandadoptionareas.Next,itisessentialtocreateandthenimplementapathforcloudmodernization,enablement,andimplementation.Andfinally,understandingandtakingfulladvantageofcloud-enabledsystemstodeliverthebestcustomerexperienceisessential.

Nearlyhalfofthefinancialservicesexecutiveswepolledacrossdomainssaidoperationalproductivityisimperativeforstrategicbusinessgrowth,while40%ofthemalsoconsideredcustomersatisfactionasanintegralpillardrivingthegrowthplan.Inlinewiththesebusinesspriorities,cloudmigrationfunctionalitiesbeingprioritizedbyfirmsincluderiskandcustomerrelationshipmanagementareas.

Oncefirmsidentifytheseareas,thenextstepistodefineandimplementaneffectivecloudtargetoperatingmodel–focusingonROI,talent,APIstrategy,infrastructure,security,cloudproviders,andcloudpartners.Cleansingalldataforaccurate,appropriate,secure,andtimelyinputisalsoessential.

Byimplementingcloudatscale,financialservicesfirmscanfullyunlocktheirabilitiestoleveragenewtechnologiessuchasgenerativeAI.Acloud-enabledecosystemwillhelpprovideacompetitiveedgeinaninnovation-poweredfuture.

aCloudadoption:AnFSfirmadoptscloudwhenitintegratesacloudservice(i.e.,SaaS,PaaS,orIaaS)oranapplication/processacrossitscoreandnon-corefunctionalities.However,cloudadoption'smigrationvariessignificantly.Ourexecutiveinterviewsandanalysesindicatethatcloudadoptionforcorefunctionalitiesisrelativelylowerthanfornon-corefunctions.

91%

87%

Client

Experience

Financialservicesexecutivesviewacloud-firstapproachasimportantforgrowth

Financialservicesfirmssayimprovedclientexperienceiskeyforbusinessgrowth

whichcan

only

effectively

bebuilton

Thiscanbe

deliveredby

anagileand

scalable

》

are

looking

for

which

willcome

from

Strongclient

experienceand

operational

excellence

Growth

Financialfirms

Platform

Cloudasanenabler

istheanswerto

driveFSbusiness

growth

89%

Financialservicesfirmsconsiderhavingtherightplatformasessentialtoachievingbusinessgoals

81%

Financialservicesfirmsstronglyfeeloperationalefficiencycanalso

drivegrowth

OperationalEfficiency

Source:CapgeminiResearchInstituteforFinancialServices,2023;CapgeminiCloudSurveyofFinancialServicesFirms2023(N=500).

5

It’snotaboutcloud,butcloud-enabledbusinessgrowth

Financialservicesfirmsfacegustymacroeconomicheadwindstoday,shiftingcustomerdemands,evolvingtechnology,andaggressivecompetitionfromagilenewcomers.Pragmaticfirmswithaneyeonsurvivalandsuccessarefocusingonbusinessgrowth,drivenbycustomerexperienceandoperationalexcellence,basedontheresponsesof80%ofthefinancialservicesexecutivesweinterviewedaspartofourCloudSurveyofFinancialServicesFirms2023(Figure1).

Technologicalagilityandscalabilityarekeystoaccommodatingever-evolvingcustomer

demandsandrealizingoperationalefficiency

forfinancialservicefirms.Eighty-ninepercent

offinancialservicesfirmexecutivessaidtheright

platformiscriticaltodeliveringthescalability,

flexibility,productivity,innovation,andagility

requiredtomeetescalatingbusinessdemands.

Andmodern-daytechnologyplatformsare

optimizedwhentheyarecloudenabled.Cloud

enablesfinancialservicesfirmstoaddress

businesschallengesbypoweringgrowthand

streamliningoperations.However,thechallenges

posedbylegacysystemsandprocessesconstrain

thecapabilitiesofbanksandinsurers.

Ifyougobackfivetotenyears,financialservicesfirmswerefocusedon

technologicalaspectsofthecloudandhowitcouldhelpreduceoverallcosts.

Althoughcostefficiencyisstillaconsideration,mostfirmslooktothecloudnowtodeliveronbusinesstransformationobjectives,whetherimprovingcustomer

experience,expandingbusinessmodelsorgeographicreach,establishingacultureofinnovation,ordrivingoperationalexcellence.”

CharithMendis

HeadofWorldwideBankingIndustry,AmazonWebServices

Figure1.Whatfinancialservicesexecutivessayabouttheirorganizations’pathtogrowth

‘

New-ageplayersleveragecloud-enabledplatformefficiencies

topowersuperiorcustomerexperience

Whichfirmsarecatalyzingbusinessthroughcloud-enabledplatforms?New-agefinancialservicescompaniessetahighbar.TheaverageNetPromoterScore(NPS®)bofthebankingandinsurancesectorsrangedfrom26to31in2022.1However,new-ageplayershadamuchhigher(~2.5X)NPSscorethanestablishedfinancialservicescompanies.

Forexample,Nubank(Brazil),Klarna(Sweden),andLemonade(US)earnedanaverageNPSscoreof80,leadingtosignificantcustomergrowth.Why?Superiorcustomerexperienceenabledbycomposableplatformsthatleveragecloudtechnologytorespondquicklytocustomerdemandsandchangingbehaviors.Asnew-ageplayerscontinuetomatureinconsistency,scale,andcustomertrust,banksandinsurerscanleveragelearningsfromtheinitialsuccessoftheseplayerstooffertherightcustomerexperienceandbuildoperationalexcellence.

Thenewageplayershaveshownexceptionalgrowth

despitequestionsontheirabilitytogrowbeyondacertainscale.Thenextfrontierwouldbetodriveprofitability-

andforbanking,thatwouldmeancomplexareas,suchaslendingandcommercialbanking.”

ZacMaufe

GlobalHeadofRegulatedIndustries,GoogleCloud

Asasubstantialportionofcustomeracquisitionfunnelsthroughdigitalchannels,leadingfinancialservicesfirmsareestablishingdigital-onlysubsidiariesorinvestingheavilyindigital-channelimprovements.InEurope,forexample,consumerswhousedigitalchannelstopurchasebankingproductsincreasedfrom33%in2020to45%in2023.By2027,nearly84%ofUScustomerswilllikelybankonline.2

Digitalsubsidiariescanenablefinancialserviceplayerstobolsteronlinebankingcapabilitiesandopportunitiesfornewmarketexpansionwithaneyeoncustomeracquisition,innovation,andagility.Whiletherevenue-generatingabilityofmanyofthesesubsidiariesisyettobeproven,thistrendhasbeenplayingoutworldwide.InSpain,Santanderestablishedopenbankingwiththehelpofacorebankingsolutionofferedby

Geneva-basedplatformproviderTemenos.TheBritishmultinationalbankStandardCharteredleveragedtheexpertiseofLondon-basedcloudbankingtechnologycompanyThoughtMachinetosetupitsvirtualbankMoxin2020,whichresultedin50%customeracquisitiongrowthfourmonthsafterimplementation.34AXAUKRetaillaunchedthedigitalinsurancebrandMojainQ32022,leveragingmodularcloud-hostedtechnologiestomeettheneedsofdigitalnatives.5InEuropeanmarketsin2022,insurerAllianzDirect,anAllianzGroupdigitalsubsidiary,partneredwithRocketset,areal-timeanalyticsdatabasebuiltforcloud,todeliverreal-timepricingforpolicies.6

Leadingbanksandinsurersneedcloud-enabledcustomer

experiencestrategiestocatchup

Whilenew-ageplayersanddigitalsubsidiariesoffersuperiorcustomerexperience(CX),incumbentbanksandinsurersseektoleveragetheirbusinessscaleadvantagetoboostcustomerexperienceandraiseNPSscores.However,theinabilityofbanksandinsurerstodeliverpersonalizationandseamlessmulti-channelengagement,self-serviceaccess,consistentcustomersupport,andquickresponsetimeimpedesthecapabilitiestoprovidecustomersatisfactiononthelevelofnew-ageplayers.Inaddition,thislimitstheirabilitytobereadyfortheopenfinanceera,wheretheyhavetobeapartofacomplexandintertwinedecosystem.

Inthefinancialservicesindustry,

digitalbusinessplatformsandcross-

industrycollaborationsmakeprocessesanddatagrowinthecloud.Activities

closelyintertwinedwithnon-financialsectorsaretoflourishinmany

businesses,likeconsumerfinance,

insurance,banking,orpayments.Thisfostersamoreinterconnectedand

dynamicecosystemthatwehavetothinkaboutthoroughly,articulate,simplify,andprotect.”

EmmanuelSardet

DeputyGroupCIOandGroupCTO,

CreditAgricole

bNetPromoter,NetPromoterSystem,NetPromoterScore,NPS,andtheNPS-relatedemoticonsareregisteredtrademarksofBain&Company,Inc.,FredReichheldandSatmetrixSystems,Inc.

Improvedcustomersatisfaction

•Drivesstrongcustomerexperience

•Closesgapbetweencustomerexpectationandvaluedelivered

Fasterspeedtomarket

•Newmarketlaunchagility

•Innovativeproducts-as-a-servicethroughcloud

platforms

81%

74%

Improvedscalability

•Efficientappsprocessing

•Globalscalability

Fasterproductinnovation

•AIadvantagesofcloudplatforms

•Cloudanalyticsfornewinsights

•Agilityinproductdevelopment

76%

80%

Improvedoperationalproductivity

•HighDevOpsproductivity

•Enhanceddatacomputation

•On-the-gocollaboration

77%

Source:CapgeminiResearchInstituteforFinancialServices,2023;CapgeminiCloudSurveyofFinancialServicesFirms2023(N=500).

WorldCloudReport-FinancialServices2023

7

Acloud-enabledCXstrategycanhelpresolvethesebusinessissues(Figure2).

•SpanishBankingGroupBBVAmigrateditscustomerservicesfunctiontocloudtoenablepersonalizedexperiencesandboostcustomersatisfaction.7Sinceits2019migration,BBVAreducedcustomerwaittimesby42%andshortenedresponsetimesby45%inPeru.ThebankwentfromadaytoanhourtoresolveurgentcustomerrequestsinSpain.

•In2022,HSBCenteredintoamulti-yearpartnershipwithaUS-basedcloudtechnologysolutionsprovidertouseautomationtoscaleupbusinessbasedoncustomerdemandsandlocalmarkets.8

•MorganStanleycollaboratedwithaleadingcloudproviderin2021toacceleratethemodernizationofitsITenvironmentand

enhanceclient,employee,anddeveloper

experiencesbybuildinginnovativesolutions

withcloud-nativeservices.9

•ZurichInsuranceselectedaleadingUScloudvendortomigrateitsITinfrastructure(1,000applications)toapubliccloudbytheendof2025.10Throughthismigration,Zurichaimstoevolveitsbusinessandprovidemorepersonalizedinsuranceproductstoitscustomers.

•AXAMansardInsurance,apartoftheAXAGroup,hasusedacloud-basedmobileplatformcalledMyAXAPlussinceMay2021.Customerscanmanagetheirinsurancepoliciesandfileclaimsthroughoneinterface.11Thisprovidescustomerswithamorepersonalized,seamless,andsatisfyingexperience.

Wefacedabusinesschallengewhereanalyzingonedayofdatatookover24

hours,makingitimpossibletomeetourtimeconstraints.However,transitioning

toascalablecloudsolutionreducedresponsetimebyover50%.Thiswaspossiblebecausewecouldeasilyscaleuptoprocessthedataandthenscaledown,resultinginsignificantcostsavings.Itwasanidealusecaseforthecloudmigration.”

.

RichardJones

VicePresident,EnterpriseInformationServices,WawanesaMutualInsuranceCorporation

Figure2.Customerexperienceenabledbycloud-basedplatformsdelivers

competitiveadvantages

8

91%

ofFSexecutives

saidcloud

adoptionwas

partialorcompleteasofAugust2023

Cloudadoptionacrossfinancialservicesisaccelerating...

So,wheredobanksandinsurersstandintheircloud-basedplatformjourneys?Financialservicesexecutivestoldustheircloudadoption(partialorcomplete)rosefrom37%inAugust2020to91%inAugust2023(Figure3).Asaresultofthehighadoptionrate,only5%offinancialservicesfirmsreportedhavingnoplanstoadoptcloudinthefuturein2023,asubstantialdropfrom50%in2020.OursurveyfoundNorthAmericatobethegloballeader,witha98%rateofcloudadoptionamongfinancialservicesfirmsintheregion.

Whyhascloudadoptionacceleratedduringveryrecentyears?Financialservicesfirmshavegainedsubstantialvaluefromcloudtoaddressgrowingdemandsforenhancedtransparency,streamlinedcustomerservice,andimprovedoperationalefficiency.Moreover,datasecurityandresiliencyconcernsaredecliningascloudtechnologymaturesanduseincreases.However,industryexpertswarnthatahighrateofcloudadoptiondoesnotimplythatfirmshaveachievedfull-scaleoreveneffectivemigration.Mostfinancialservicesfirmsareadoptingcloudtechnologywithoutredefiningtheirbusinessprocesses,insteadoptingfora“liftandshift”modelthatimpedescloudsystems’fullscalabilityandflexibilityadvantages.

Optingfora'liftandshift'approachcanhinderbusinessesintheircloud

adoptionjourney,asrushingthemovetocloud‘asis’oftenleadstomissed

opportunitiesformodernizationandfullutilizationofcloudservices.Focusing

solelyonmigratingquicklyraisesdoubtsaboutrealizingthecloud'struebenefits,asitgoesbeyondsimpledataandapplicationtransfer–itmustbeabouttrue

transformation.”

StevenJ.Webb

ExecutiveDirector–PublicCloudProductOwner,MiddlewareIntegration,WellsFargo

Figure3.Financialservicesfirmsdemonstratesignificantcloudadoptiongrowth

Cloudadoptioninfinancialservicesindustry,August2020vsAugust2023

50%

5%

4%

13%

91%

37%

Aug2020Aug2023

Source:CapgeminiResearchInstituteforFinancialServices,2023;CapgeminiCloudSurveyofFinancialServicesFirms2023(N=500).

Notconsidering/Noplantoadopt

Currentlyevaluating

Cloudadopted

partially/completely

Cloudadoption(partial/complete)byregion,August2023

NorthAmerica

APAC

EMEA

93%

98%

77%

Cloudadoption(partial/complete)byFSdomain

94%

93%

91%

96%

88%

87%

85%

51%

46%

43%

32%

27%

29%

32%

Wealth

Management

CapitalMarkets

Life

Insurance

HealthInsurance

P&C

Insurance

RetailBanking

Payments

Aug2020Aug2023Aug2020Aug2023

Source:CapgeminiResearchInstituteforFinancialServices,2023;CapgeminiCloudSurveyofFinancialServicesFirms2023(N=500).

9

Whileallfinancialservicessegmentshave

experiencedrobustcloudadoption,payment

firmsstoodout,withasignificantjumpfrom32%

inAugust2020to96%inAugust2023,according

toourCloudSurveyofFinancialServicesFirms

2023(Figure4).TheCovid-19pandemicand

itsaftermathcontributedsignificantlytothis

growthasconsumersandbusinessesreliedon

digitalpaymenttransactions,whichcreatedan

imperativeforembracingcloud-enableddigital

systems.

Globally,publiccloudadoptionisonthe

riseacrossallindustries.In2023,spendingon

publiccloudservicesisexpectedtoreachnearly

USD597.3billion,withsoftwareasaservice

(SaaS),infrastructureasaservice(IaaS),and

platformasaservice(PaaS)cloudbusiness

modelsaccountingfor~80%ofthemarket.12

Accordingtoa2023Gartnerstudy,basedon

end-userspending,SaaSdominatesandremains

thelargestsegmentofthecloudmarket(~33%).

Basedonourdiscussionswithfinancialservices

industryexecutivesandexperts,theindustry’s

cloudadoptionalsofollowsasimilarpattern.

MostfirmsadoptSaaSfirst,followedbyPaaS

andIaaS.

Typically,anykeytechnologybuildsupforsometimewhileitmatures,and

theusageremainsaplateau.Then,astheadoptionmatures,thecurvetakesoffsignificantly.Wearewitnessingthesamewithrespecttocloudadoption.”

MollyChowdhury

ChiefInformationOfficer,HSBCUS

Figure4.Thepaymentssegmentleadsinfinancialservicescloudadoption

Highshare

ofcloudinvestment

Lowtomediumshare

ofcloudinvestment

10

50%+

ofFSexecutives

saidcorebusinessapplicationshavenotbeenmigratedtocloud

…butcloudmigrationanditsimpactremainuneven

Cloudinvestmentshavehappenedsofarinmodern,user-friendly,customer-facingapplications,oftenfueledbyartificialintelligence(AI).Usecasesincludeself-serviceportals,onboardingandknow-your-customertools,transaction-basedfunctionalitiessuchaspayments,andeventheagent-brokertoolsusedtoserveinsurancepolicyholders(Figure5).

However,firmshavemadefewerinvestmentsinthemiddle-layerandcoreprocessing,spurringpooruserexperienceandlowlatency.Examplesofsystemsreceivinglessinvestmentincludeemployeeproductivitytools,riskmanagementandcompliancesystems,datamanagement,productdevelopmentandmanagement,and,mostimportantly,corebankingandinsurancesystems.

Morethan50%ofthefinancialservicesindustryexecutiveswesurveyedsaytheyhavenotmigratedcorebusinessapplicationstocloud.Atthesametime,industryexpertsandanalystsoftenciteanevenlowerpercentagerangingfrom20%to30%,particularlyforlargerbanksandinsurancecompanies.

Banksandinsurersoftenstruggletomodernizetheircore-processingapplicationsortointegratethemwithcloud-basedsystemsandemergingtechnologies.Thisbreaksthe

Cloudtransformationprojects

shouldbeambitiousandbold,and

shouldlooktotransfercoreworkloadstocreatevalue;althoughtheremaybeafewmorechallengesthanmovingnon-coreworkloads,itwon’tbesignificantlymore.”

TonyColeman

ChiefTechnologyOfficer,Temenos

servicechain,negativelyimpactingoperationalefficiencyandcustomerexperience,asdepictedinFigure1.

Eventually,firmsintendtoshifttheiron-premisescoreback-officefunctionstocloudprimarilytounlockthefullvalueofcloud.Therationalebehindthisapproachliesinharnessingimprovedscalability,cost-efficiency,andoperationalagility,allessentialforenhancingoverallperformanceandmaintainingcompetitivenessinarapidlyevolvingbusinessenvironment.Firmswillneedtointegratetheircloud-basedapplicationswithlegacyback-officefunctionstobecompetitiveonthesefrontsintheinterim.

Figure5.Lowercloud-enabledtransformationinmiddle-andback-officefunctions

Agent-broker

tools

Transactiontools

suchaspaymentapps

Educationaltools

Product

developmentsystems

Riskmanagementsystems

(creditrisk,underwriting,

marketrisk)

Coresystems(banking

operations,claims,

policymanagement)

Source:CapgeminiResearchInstituteforFinancialServices,2023.

Customer-facingapplications

Middle-layerapplications

Supportfunctionsystems(HR,

Accounting,etc.)

Core-processingplatformandapplications

Datamanagementsystems

Clientself-serviceportals

Compliancesystems

Service/claim

managementtools

Onboarding/KYC

11

Modernizinglegacymainframeapplicationsto

enhanceclientexperience

Businesschallenge

Aretailinvestmentmanagementfirm’spersonalinvestingbusinessmanagedaportfolioof45+legacymainframeapplications.Theclient’sstrategicprioritiesweretoextendmainframecapabilitiestodigitalmobileapps,graduallymovethemainframestack'stechnologytothecloudandreducetheconsumptionofMIPS(computingcapacity).Atechfirmandahyperscalersupportedtheclientindevelopingacloud-platformmodernizationroadmap.

Businesssolution

Theteamevaluated45mainframeapplicationsformigrationsuitabilitytofuture-statearchitecturedesign.Assessmentcriteriaincludedmainframere-platforming,hybridintegration,andcloud-nativerefactor

suitability.Thetechnologyfirmcollaborated

withahyperscalertodesignthefuturestate

architecture,leveragingmainframe-specific

cloudintegrationservices.

Businessimpact

Convertingmainframefunctionalitytocloud-

nativeAPIsimprovedtheuserexperiencewhile

reducingthetimetodelivernewfeatures.

Cloudconnectorsforthemainframeenabled

theconversionofseveralend-of-dayprocesses

toreal-timeintegrationsandautomated

mainframeassessmentofintellectualproperty.

Themainframeworkforceshiftedtoagileand

cloud-nativeskills.Thefirmnowhasamixof

pre-builtmainframeswithacloudmigration

patternscatalogandamethodologywitha

domain-drivendesign.

d

e

)

d

e

S

c

a

d

e

n

a

a

B

b

n

m

fi

E

(

g

n

i

k

n

s

a

I

b

P

A

n

e

p

O

k

r

o

w

t

e

n

h

c

n

a

r

B

a

C

p

p

a

e

il

b

o

M

s

r

o

s

i

v

d

a

-

o

b

o

R

s

r

e

t

n

e

c

l

l

a

C

t

y

l

a

n

a

r

e

W

c

C

s

c

i

e

t

m

Compliance

Onboarding

Clearingand

settlement

Underwriting

Reconciliation

Reporting

Fraud

management

Identity

t

s

n

n

o

t

i

e

t

s

a

c

s

o

A

l

l

a

l

a

g

i

n

c

i

n

n

a

n

n

a

i

l

F

p

g

n

i

d

n

e

L

o

i

g

l

n

o

i

f

d

t

l

i

r

o

u

P

b

s

t

t

n

n

e

a

t

m

s

y

n

I

a

p

H

C

A

/

S

G

T

R

e

e

c

d

n

a

a

r

n

T

fi

d

t

y

n

n

t

e

i

a

d

m

h

i

e

u

s

g

a

q

a

i

n

C

l

a

m

ebsi

RMandusto

rds

Daaaalytic

Existingcorebankingengine

ExistingcorebankingengineProcesslayerProductlayerDistributionlayer

12

Composableplatformsare

instrumentaltomeetingbusinessneeds

Acomposableplatformcanintegratecloud-

enabledfront-endandexistingcoreback-end

functionalitiestoenableafirmoralineofbusiness

tolayermodularandcomposablecomponents

acrossthecompletecustomerexperiencevalue

chain,whichincludesdifferentmiddleandfront-

officefunctions,multipleprocess,product,and

distribution.Thesearelayeredonanexisting

coreenginethatmightstillbeusingsomelegacy

systemsorbebasedcompletelyonamodern

cloud-basedtechnology.

Whilethedetailsofthedifferentlayersvary

acrossbankingandinsuranceandwillvaryfurther

atline-of-businesslevels(ascoveredforthe

w