Consulting for the UAE bank
Preamble
A midsize commercial bank in the UAE has taken the initiative to conduct digital transformation of its services. SPH participates in discussions and consultations and offers its vision of the target IT architecture and the project for its implementation. We also analyzed the gaps between the actual functionality of the Bank’s online application for corporate clients and its functionality expected by the market.
Problem
At the moment, the functionality of the bank’s application for corporate clients looks outdated and does not meet modern requirements. To solve this problem, the Bank is considering the possibility of replacing its CBS with a more modern one and expects to receive customer service functions out-of-box, along with the new system.
In our opinion, this approach contains significant risks, since the CBS replacement project may take a longer time and not give the initially expected results. In addition, configuration and refinement of out-of-the-box functionality for specific business requirements will be additionally required. The approach of step-by-step modernization of the bank’s IT services architecture by creating or modifying custom services, that work independently and integrated with CBS, looks more effective. We suggest that the first priority is to make improvements to the Bank’s products that have the highest profitability. Thus, the project will bring maximum benefits from the bank’s customers and will give the greatest economic effect in a short period.
Solution
Our specialists conducted a GAP analysis and identified the functionality that is missing in the Bank’s online application. Further, together with the Bank’s specialists, we determined priorities for the introduction of new functions in accordance with the Bank’s development strategy and the profitability of its products.
Business Online Functionality Gap for UAE Bank
Online Banking Services:
- Provide a secure online portal for corporate clients to access banking services;
Account Management:
- View and manage multiple corporate accounts;
- Monitor balances, transactions, and account details;
Payments and Transfers:
- Initiate and manage domestic and international wire transfers;
- Schedule and process batch and basket payments;
- Set up recurring payments;
Multi-Currency Support:
- Support transactions and account balances in multiple currencies;
- Provide real-time currency exchange rates;
Trade Finance:
- Facilitate trade transactions, such as letters of credit and documentary collections;
Integration with Accounting Systems:
- Seamless integration with accounting software to streamline financial processes;
- Support for standardized file formats for easy data exchange.
Credit and Loan Management:
- Allow businesses to apply for credit and loans;
- Provide tools for tracking and managing credit lines;
Risk Management:
- Assist in identifying and managing financial risks;
- Provide tools for hedging and risk mitigation;
Treasury Management:
- Assist in managing investments and optimizing liquidity;
- Provide tools for monitoring and managing treasury functions;
Cash Management:
- Optimize cash flow through effective management of receivables and payables;
- Access tools for forecasting and analyzing cash positions.
Compliance and Regulatory Reporting:
- Ensure compliance with financial regulations;
- Generate reports required for regulatory purposes;
Reporting and Analytics:
- Generate customizable reports on account activity, transactions, and financial performance;
- Offer analytics tools for budgeting and financial planning.
Security and Authentication:
- Implement robust security measures to protect sensitive financial data;
- Support multi-factor authentication for user access;
Document Management:
- Secure storage and retrieval of important financial documents;
- Support for electronic signatures and document tracking;
Customer Support and Services:
- Access to customer support for assistance with account-related issues;
- Training resources and documentation for users.
We have defined the target model of the bank’s IT services architecture based on modern principles:
- Modularisation of functionality and layering facilitate independence in scaling, simplify further evolution and reduce implementation costs;
- Each part is tailored to provide quality foundation for more sophisticated and innovative products;
- Easy, quick and secure access through variety of channels accommodating to user needs.
This model will effectively lead to further development of the service structure and flexibly scale the required resources in accordance with the current load. The implementation plan assumes a phased modernization of the structure of the Bank's IT services with a gradual approach to the target model of the IT architecture.
Project phases
Prioritise (<1 month)
Determine the priorities of the digital transformation process in accordance with the Banque Misr strategy.
Define (1–2 months)
- Perform a gap analysis;
- Define the alternatives;
- Form a target vision;
- Define implementation plan.
Design (2+months)
- Design functional specifications;
- Define technical environment needs.
Execute
- Set up the delivery process;
- Facilitate iterative and transparent value creation.
Run
Facilitate organizational changes process.
Facilitate/provide resources (will be executed simultaneously)
- Facilitate project management, set up and provide regular team activities and reporting;
- Provide analysts, developers, QA-engineers, project managers and other needed staff;
- Organize and conduct IT delivery process;
- Set up the project landscape in accordance with IT security requirements;
- Provide and manage the external IT-development team;
- Legacy systems development and maintenance.