1、Core modernisation:Enhancing the digital transformation of financial institutionsSeptember 2024PwC Core modernisation:The end stage of facilitating digital banking2|PwC Core modernisation:Enhancing the digital transformation of financial institutions3|ForewordThe rapid adoption of digital technology

2、 in the financial services sector has changed the way customers interact with banks and other financial services providers.Banks serve a diverse set of customer segments,with a focus on experience,simplification,cost and compliance.Today,the availability of large corpus of data with digital public i

3、nfrastructure(DPI),adoption of cloud technology,availability of new age infrastructure and artificial intelligence(AI)has provided the right impetus for banks transform their customer experience delivery.India is a vast and diverse nation and providing banking services for such a large population is

4、 a tremendous challenge.To ensure smooth operations throughout the customer acquisition lifecycle,banks need to invest in multiple technologies and platforms which are critical for providing hassle free services.Core banking is one such technological platform which controls the entire banking servic

5、es ecosystem.Core modernisation has evolved as an important method for the digital transformation of both global and Indian banks.This thought paper delves into the need-impact-roadmap of core modernisation,its importance for banks and how it can help them in addressing customer needs,meeting compli

6、ance requirements and aligning with their business goals.We hope that you will find the paper to be an interesting and insightful read.Rajdeep SahaPartner,Financial Services AdvisoryPwC IndiaPwC Core modernisation:Enhancing the digital transformation of financial institutions3|PwC Core modernisation

7、:The end stage of facilitating digital banking4|PwC Core modernisation:Enhancing the digital transformation of financial institutions5|ContentsIntroduction0106Digital transformation in the financial services sector 0208Key benefits0422Core modernisation in banks and financial institutions:A strategi

8、c imperative0312PwC Core modernisation:Enhancing the digital transformation of financial institutions5|PwC Core modernisation:Enhancing the digital transformation of financial institutions6|IntroductionIndia has set ambitious growth plans to become a USD 35 trillion economy by 2047.1 Since the banki

9、ng and financial services industry plays a significant role in this growth,it needs to grow 20 x to achieve the countrys goals.2 The financial services sector is currently experiencing rapid changes with digital transformation playing a key role in driving success for banks and financial institution

10、s.Technological advancements(e.g.blockchain,artificial intelligence(AI),cloud and digital public infrastructure),changing customer expectations and regulatory developments are driving the financial services sector to reconsider traditional operational models and adopt new,innovative solutions.Centra

11、l to this transformation is the need to modernise core platforms,which forms the foundation of a financial institutions IT infrastructure and enable seamless transaction execution,customer account management and financial service delivery.Financial institutions are facing significant challenges rela

12、ted to their core system due to rapid growth in loan activity,expansion of client base and an increase in payment transaction volumes which reinforces the need for core modernisation of their systems.Banks are finding it difficult to innovate and quickly adapt to market needs due to inflexibility of

13、 legacy systems,high maintenance costs,and restricted scalability of outmoded infrastructure.As a result,new core solutions built on architectural principles are gaining popularity among financial institutions because they provide enhanced flexibility,robustness,scalability and security features.011

14、.https:/pib.gov.in/PressReleasePage.aspx?PRID=20071052.https:/ Core modernisation:Enhancing the digital transformation of financial institutions7|Core modernisation is a strategic initiative which can improve a financial institutions capacity to compete in the digital era.However,the process require

15、s a well-structured change management plan since merely adopting technology will not suffice and the employees should be trained to operate the modern technological tools.Financial institutions can automate procedures,optimise operations and offer customised,real-time services to meet the evolving d

16、emands of modern,digitally savvy consumers and become more resilient and scale their operations for future business growth by adopting cutting-edge core systems and platforms.Furthermore,by enhancing cybersecurity measures and adhering to legal regulations,these contemporary solutions safeguard the

17、institutions integrity and foster consumer trust.Various strategies,including coreless architecture,hollowing out the core or externalising components,and upgrading the core banking system,can be used for core modernisation.Financial institutions have to reconsider their enterprise design and identi

18、fy the main goals of modernisation.Since each bank will have different requirements,it is important to thoroughly consider the unique circumstances,strategic objectives and risk tolerance before adopting the core modernisation strategy.This paper focuses on the intricacies of the financial services

19、sectors digital transformation with a focus on the modernisation of key platforms and processes.It also discusses the current challenges,market dynamics behind modernisation efforts and the various approaches for implementing new core systems and platforms.By learning more about core modernisation,f

20、inancial institutions can make informed decisions which can enhance their operational efficiency and set them up for long-term success in the digital era.PwC Core modernisation:Enhancing the digital transformation of financial institutions7|PwC Core modernisation:Enhancing the digital transformation

21、 of financial institutions8|02Digital transformation in the financial services sectorIn the last decade,Indias banking industry witnessed a substantial transition from offering traditional services to digital banking services.The advent of automated teller machines(ATMs)and internet banking,which si

22、gnificantly increased the accessibility of crucial banking services,marked the beginning of this shift.A another significant advancement was made with the launch of the unified payments interface(UPI),which allows instant,real-time inter-bank transactions via mobile devices.Furthermore,the growing c

23、ooperation between banks and FinTechs to pool resources and provide creative financial solutions.These collaborations are essential for growing operations for catering to a wider clientele and minimising costs.Figure 1 illustrates the loan consumption growth trends in India in FY18 and FY24.Figure 1

24、:Growth trends of key financial transactions in India(FY 18 and FY24)Source:https:/www.npci.org.in/PDF/npci/knowledge-center/partner-whitepapers/The-Rise-and-Evolution-of-Indias-Digital-Finance.pdfDigital retail payment transactions 15 billionFY1850%CAGR 170 billionFY24Total deposits USD 1.8 trillio

25、nFY183%CAGR USD 2.1 trillionFY24Total retail loan FY1815%CAGR FY24UPI transaction volume 5.4 billionFY18147%CAGR 145 billionFY24USD 330 billionUSD 758 billionPwC Core modernisation:Enhancing the digital transformation of financial institutions9|Digital retail payment transactions have experienced a

26、dramatic increase from USD 15 billion in FY18 to an impressive USD 170 billion in FY24.3 This notable expansion can be attributed to developments in payment technologies and systems,which has significantly improved the effectiveness and scope of digital financial transactions.The Indian banking sect

27、ors total deposits reached approximately USD 2.1 trillion as of March 2024,which is a substantial increase from USD 1.8 trillion in March 2018.4 Indias economic growth,digitisation,rise in unsecured loans,government initiatives,rising consumer spending and innovative financial products are the main

28、drivers of the countrys retail loan growth and for the increase in UPI transaction volumes from FY18 to FY24.5.https:/ trends Evolving customer expectationsThe need for an integrated experience for the consumer through various channels(e.g.social media,web,mobile,branches,kiosks and online banking)g

29、ave rise to the demand for an updated and cohesive core banking infrastructure.Customers expectations have changed over time which makes it necessary for banks to hyper-personalise their offerings to cater to a wide range of customers.Evolving FinTech landscapeThe FinTech sector in India is expected

30、 to grow at an average of 31%from 2024 to 2029 and will reach around USD 420 billion.5 The extensive use of digital loans,digital payment platforms and mobile wallets has urged banks to modernise basic banking systems in order to handle large volumes of transactions in real time,while the emergence

31、of open banking and application programming interface(API)integration is encouraging a collaborative ecosystem,necessitating the need for flexible and scalable core infrastructure.Banks are collaborating with FinTech institutions to leverage their technological expertise and develop affordable produ

32、cts.0102New products and channels New financial products and services like buy now,pay later(BNPL),omnichannel experiences,self-service journeys,real-time payment infrastructure like UPI for non-smartphones,and super apps are gaining popularity.In India,UPI will account for a significant portion of

33、digital payments,with a value of INR 455 trillion.6 API connectivity and cloud-based modular designs are making it possible for banks to work seamlessly with FinTech organisations to create a financial services ecosystem for introducing new services and products and scaling innovation without develo

34、ping these solutions themselves.03Some of the key trends which are emerging in the Indian banking and financial institutions sector are:PwC Core modernisation:Enhancing the digital transformation of financial institutions10|7.Source:https:/ public infrastructure(DPI)and open banking The exchange of

35、financial data across institutions has increased the demand for providing clients with special services.Financial services institutions may now perform tasks including trade transactions,currency conversions,centralised account administration,and transactional data sharing with DPI and open banking.

36、With the introduction of unified lending interface(ULI),Open Network for Digital Commerce(ONDC),Open Credit Enablement Network(OCEN)and Agri Stack,DPI has made tremendous progress in the rapidly changing financial services sector.DPI and open banking.With the introduction of unified lending interfac

37、e(ULI),Open Network for Digital Commerce(ONDC),Open Credit Enablement Network(OCEN)and Agri Stack,DPI has made tremendous progress in the rapidly changing financial services sector.04Improving client experience and operational efficiency requires integration of cutting-edge technologies like blockch

38、ain,cloud computing and AI.However,the scalability,adaptability and integration capabilities of traditional core systems are limited.In order to efficiently meet the changing needs of the industry and keep up with technological improvements,it is essential to upgrade the architecture of banking syst

39、ems.To adopt the right core modernisation strategy,the senior leadership of banks and financial services organisations should consider the following questions:How does the current business model align with the emerging technologies and market trends?How are the risks brought on by the obsolescence o

40、f technology being managed?Is my organisational architecture scalable and robust enough to meet the demands of the digital age for goods and services?Is my present core platform aligned to current market trends and growth aspirations?Figure 2:Components of DPISource:PwC analysis DPIsAadhaarDigital I

41、DsAccount aggregatorData exchangePaymentUPIFASTagDigital networkOCENONDCBy establishing a consolidated platform for credit access,ULI improves the efficiency of lending.Through this platform,borrowers including micro,small and medium enterprises(MSMEs)in rural areas can quickly establish connections

42、 with various lenders by using integrated data sources like e-KYC and Aadhaar.ONDC has revolutionised e-commerce and facilitates over 68 million transactions by bringing buyers,sellers,and service providers together on a single network.7 When combined,these platforms offer solutions which facilitate

43、 inclusion,and enhance efficiency and transparency across a range of industries which can accelerate the countrys economic growth.PwC Core modernisation:Enhancing the digital transformation of financial institutions11|PwC Core modernisation:Enhancing the digital transformation of financial instituti

44、ons11|PwC Core modernisation:Enhancing the digital transformation of financial institutions12|03Core modernisation in banks and financial institutions:A strategic imperativeLegacy systems hinder the adoption of new technologies due to high maintenance costs and complicated,isolated design.Modernisat

45、ion offers a workable long-term strategy by delivering adaptable,secure and user-friendly platforms which can satisfy the regulatory requirements and enhance customer satisfaction.Therefore,banks must upgrade or replace legacy systems through core modernisation to remain flexible and competitive in

46、an evolving digital banking landscape.Figure 3 provides a detailed view of the key challenges for banks and financial institutions which can be addressed by adopting core modernisation.PwC Core modernisation:Enhancing the digital transformation of financial institutions13|Figure 3:Addressing five ma

47、jor challenges for Indian financial institutions through core modernisationThe impact of core modernisation Enhanced resilienceContinuous availability:Ensures system uptime with high availability,crucial for real-time transactions.Fault tolerant design:Distributes workloads across multiple nodes to

48、manage failures without system-wide impact.Optimised performanceEffective load balancing:Employs advanced techniques to prevent any server from becoming a performance bottleneck.Adaptable solutionsAdaptive design:Supports modern application requirements,including event-driven architectures.Rapid dep

49、loyment:Facilitates quick configuration and launch of new products and services.Increased agilityIncrease quick market entry for new products and services:Reduces product release timelines significantly from months to weeks.Frequent updates:Enables frequent updates and improves responsiveness to mar

50、ket demands.Enhanced scalabilityDynamic resource management:Efficiently manages peak read/write traffic with auto-scaling capabilities.Leverages microservices:Utilises microservices for improved scalability and resource allocation.Source:PwC analysis PwC Core modernisation:Enhancing the digital tran

51、sformation of financial institutions14|Traditional banks are under tremendous pressure to modernise their operations since legacy banking systems are interdependent which can lead to bottlenecks and cause delays in the introduction and development of new products.On the other hand,current cloud-nati

52、ve,standardised platforms enable efficiency and agility via DevOps and automated testing.Since old systems are incompatible with contemporary operating systems and programming languages and rely heavily on hard-coded business rules which complicate modern system integration,managing legacy systems b

53、ecomes more and more challenging.Large technology and FinTech companies,which can provide new financial services and implement changes more quickly,are also putting pressure on traditional banks to modernise their processes.Furthermore,banks have to update their core systems to stay competitive and

54、adhere to the regulations set by regulatory bodies.To highlight the importance of modernisation,the Reserve Bank of India(RBI)has established regulatory measures to improve transparency,centralise information and streamline banking operations and also publishes regulatory and compliance reports on r

55、egular basis.Figure 4 illustrates the four key components of the core modernisation process.Figure 4:Key components of core modernisationCore modernisation strategy To stay competitive,boost operational efficiencies and deliver superior customer service,central banking systems need to upgrade their

56、technology.Before banks choose the modernisation plan for their organisation,they must consider a few important points.Banks must conduct a comprehensive evaluation of their existing procedures.Banks should evaluate their current core systems,look at performance indicators,business processes,and con

57、duct a strengths,weaknesses,opportunities and threats(SWOT)analysis to determine the benefits and drawbacks of their current systems.for establishing future strategies which incorporates innovative technological trends like blockchain,AI,cloud computing and quantum computing and is aligned to the ba

58、nks strategic objectives.A phase-by-phase roadmap with specific objectives,design and architectural principles,timetables,resource allocation and key performance indicators(KPIs)must be developed to track the implementation programmes progress and success.Collaborating closely with specialists,regul

59、atory bodies and technology providers can provide vital information and support.Another crucial factor for core modernisation is choosing the right technology and architecture.Banks should take into account the scalability,resilience,flexibility,security and integration capabilities of technology wh

60、ile designing a modular,composable,microservices-based architecture which supports continuous and agile delivery methodologies.Many private,public and hybrid cloud solutions service providers offer scalable,cost-effective options for banks which they can choose from based on their organisational nee

61、ds.Core modernisation Core modernisation strategyEnterprise architecture redesign Technology execution path Change managementSource:PwC analysis PwC Core modernisation:Enhancing the digital transformation of financial institutions15|The foundation of core modernisation is an authentic,verifiable dat

62、a repository.Therefore,data governance regulations must be implemented to ensure that the data is secure and that the data transfer process complies with regulatory standards,allowing for a smooth transfer of data.An effective change management plan is essential for a seamless shift from legacy syst

63、ems to a contemporary core.A comprehensive change management plan which incorporates stakeholder communication,training initiatives,and support systems can effectively manage cultural and operational changes.Some of the points which banks must consider while planning the core modernisation strategy

64、are:Timeline and durationEvaluation,design and planning,implementation,testing,validation and monitoring the processes.BudgetA comprehensive cost-benefit analysis,initial investments,continuing operational expenditures and contingency budget for the core modernisation process.Strategic alignment Ver

65、ify that the project is aligned to the strategic objectives of the bank supported by a well-defined governance structure and clearly defined performance indicators.Technology stack Develop strong vendor relationships for scalability,adaptability and security of the core modernisation process.Risk ma

66、nagementDetermine possible risks and develop plans to mitigate them as per the cybersecurity and regulatory compliance requirements.Change managementConduct training programmes for upskilling the workforce.PwC Core modernisation:Enhancing the digital transformation of financial institutions16|Develo

67、ping a detailed banking architecture is important for implementing core modernisation.A robust architecture design not only facilitates ongoing operations but also establishes the groundwork for future expansion,adaptability and creativity.It provides flexibility to adapt to new requirements,alterat

68、ions in regulations and developments in technology.Another crucial aspect to consider while redesigning the architecture is resilience,which guarantees catastrophe recovery and business continuity by reducing downtime and service interruptions.Furthermore,a strong architecture guarantees regulatory

69、compliance and improves security to safeguard sensitive financial data.It also simplifies processes,reduces redundancies and enhances the overall effectiveness of the operations.Figure 5 provides an overview of the architecture for banks and financial institutions.Enterprise architecture design The

70、core modernisation model chosen by the organisation must be aligned with the architecture of the bank so that they can seamlessly work in unison.To guarantee that modernisation initiatives result in measurable commercial value,the architecture must be in sync with the banks strategic goals,which may

71、 include boosting customer experience,increasing operational effectiveness and developing digital capabilities across various functions.Whether modernisation is achieved by core version upgrades,core hollowing,or coreless techniques,the architectural design should be developed in a manner which can

72、facilitate all of these models.The architecture should support upgrades with minimal disturbance and a modular design with strong middleware is necessary to integrate specialised platforms and detach non-core functions to hollow out the core.Figure 5:A suggested approach for the enterprise architect

73、ure of banks and financial institutions Source:PwC analysis Technology trendsRegulatory changesBusiness strategic directionVisionMissionStrategic objectivesCurrent state Enterprise architectureInfrastructureData and informationSecurityBusinessApplicationIntegrationTarget enterprise architecture blue

74、printProgramme governance frameworkBusiness and IT roadmap and implementation planIT organisational structureIT sourcingIT governance modelIT delivery modelIT service catalogueIT capabilitiesIT processesHistoric/existing technology roadmapsPwC Core modernisation:Enhancing the digital transformation

75、of financial institutions17|Some of the strategies which can be incorporated into a banks overall goals to implement core modernisation and ensure that all legacy systems are upgraded within the budget set aside for this endeavour are:Approaches for implementing core modernisationIn order to derive

76、the best possible outcomes of business endeavours,it is important to upgrade the current core with the latest core version.An advantage of this approach is that it protects current system investments and reduces disturbances since the existing workflows and processes are intact.It also enhances data

77、 security and improves the performance of the banks operations.However,there are still issues with this strategy such as reliance on the vendors upgrade cycle and capabilities and the inability to address all the issues of the legacy system.The two approaches for implementing core refresh/upgrade ar

78、e:Core refresh/upgrade01The big-bang approachThis method involves a thorough update of the complete core system in a single,well-planned event which is usually planned during scheduled downtime.Comprehensive simulation runs are necessary before implementation to identify possible problems and ensure

79、 that the system is ready.A complex fall-back plan which includes rollback procedures,data back-ups and a task force which manages the important task of handling emergencies is essential for the big-bang approach.Customer data safety is of the utmost importance and strong encryption,strict access ru

80、les and real-time monitoring is necessary to prevent data breaches.In-depth testing,including stress and security assessments,is also necessary to guarantee that the new system can manage real-time data with the highest level of efficiency and security.02Phased approachAccording to this strategy,the

81、 core system should be upgraded gradually,in segments,either by branch,line of business(LoBs),or client.By limiting modifications to more manageable,smaller units,this strategy reduces risks and simplifies problem identification and resolution.A bank may,for example,start with one branch or one LoB,

82、carefully track the results and gradually roll out the update to additional branches or business units.Since maintaining the integrity of consumer data is crucial,each stage of the phased approach should include strong encryption,strict access controls and frequent audits.By allowing ongoing feedbac

83、k and iterative modifications,this phased rollout helps in minimising disruptions and ensures a more seamless transition.It also facilitates an incremental training programme for employees and clients which makes it easier for them to adapt to the new ways of working.These approaches offer distinct

84、pathways for core modernisation,each with its own set of advantages and challenges.The selection of the appropriate strategy for each organisation is based on the organisations risk tolerance,resource availability and specific modernisation goals.PwC Core modernisation:Enhancing the digital transfor

85、mation of financial institutions17|PwC Core modernisation:Enhancing the digital transformation of financial institutions18|Moving specific functions and high-volume processes outside the core system to specialised external systems is known as hollowing or externalisation.In this approach,the core sy

86、stem experiences less change which can reduce the risks since it focuses on specific functions and improves the performance and scalability of the overall system.It also facilitates easier integration of new technologies and services since it provides flexibility of only moving specific functions ou

87、tside the core system.However,issues related to strong integration skills and the possibility of managing numerous systems persist in this model.Hollowing/externalisationExternalisation of multiple functionalitiesThis method aims to lessen the load of and the reliance on the core for core modernisat

88、ion.Examples of functionalities which can be externalised include reporting,customer information files(CIFs)and general ledgers(GLs).An example of this architecture is the hollowed-out core,which retains only the essential functions under the core banking system(CBS),including batch processing,lendi

89、ng,current account savings accounts(CASAs)and transaction banking.Figure 6:Core modernisation modelsSource:PwC analysis Legend:CBSExternal BranchInvestment bank/merchant bank(IB/MB)ATM/point of slaes(POS)Call centreCustomer relationship management(CRM)Pricinge engineProduct hubBusiness workflowCurre

90、nt/savingsTransaction bankingLendingBatch processingGeneral ledgerRegulatory reportingManagement information systems(MIS)StatementsBranchIB/MBATM/POSCall centreCRMPricing EengineProduct hubBusiness workflowCurrent/savingsTransaction bankingLendingBatch processingGeneral ledgerReg reportingMISStateme

91、ntsLegacy coreBranch(IB/MB)ATM/POSCall centreCRMPricing engineProduct hubBusiness workflowCurrent/savingsTransaction bankingLendingBatch processingGeneral ledgerRegulatory reportingMISStatementsContemporary thin coreHollowed corePwC Core modernisation:Enhancing the digital transformation of financia

92、l institutions19|A completely coreless system is powered by events for data integration and APIs and is driven by templatised microservices and core configurations/functionalities.It is based on concepts which are product,channel,core and customer service point agnostic.The coreless architecture is

93、based on the low-code/no-code design philosophy which makes scalability of the coreless system easier.The high flexibility and scalability of this method facilitates innovation and adaptation,enhances fault tolerance and resilience and makes it easier to adopt cloud-native applications and technolog

94、ies.While creating the procedures for the core modernisation process,banks should take into account a few important design principles as they work to build more scalable,robust and flexible technological capabilities.Figure 7 depicts the process of unbundling the core.Coreless systemFigure 7:Core mo

95、dernisation pattern unbundling the coreBanks can select any approach based on their requirements and organisational goals.The maturity of the banks readiness to adopt core modernisation can also help the organisations in selecting the right approach and some banks can even directly transition to a f

96、ully coreless approach.Individual microserviceSource:PwC analysis Monolithic interconnected architectureTrade financeInterlinked modulesOriginationCRMCash managementPaymentsAccountsLoansWealth management(WM)servicesBanking middlewareIndividualisedcomponentsModular/componentised service oriented arch

97、itecture(SOA)Digital agility layerIndividualisedcomponentsMiddleware(Enterprise service bus(ESB),API integration)PaymentsTrade financeEnterprise collateralTreasuryAccountsWM servicesOriginationLoansCore banking integrationsTransaction processing hubCRMPricing engineCustomer data hubPaymentsEnterpris

98、e collateralAccountsOriginationTrade financeTreasuryWM servicesLoansCloud native microservices architectureLegend:PwC Core modernisation:Enhancing the digital transformation of financial institutions20|Change management ensures seamless transition and effective integration of state-of-the-art techno

99、logies and processes.For core modernisation,the journey originates with a strategic phase-wise evaluation and implementation where banks evaluate their existing systems to understand the areas where change management is most needed.Some of the measures which banks can consider for evaluating and und

100、erstanding these areas are stakeholder engagement for requirement gathering,performing a gap analysis to identify inconsistencies between existing capabilities and future goals,and charting a comprehensive roadmap which highlights the objectives,timelines,milestones and the resources needed.The effe

101、ctive transformation of core banking systems depends on the success of pivotal activities in change management.Robust governance and leadership advocacy are key factors and senior leadership should play an active role in ensuring that the change management plan is aligned with the organisations stra

102、tegic goals.A well-defined vision and objective must be effectively and clearly communicated,and stakeholders must be made aware of the benefits of the change management process.Assessing the progress of the implementation of core modernisation though key performance indicators(KPIs)and conducting r

103、ecurring assessments can be some of the ways to determine the effectiveness of the change initiative.Proactively managing obstacles by identifying potential hazards and putting mitigation plans into action can help in the seamless implementation of the change management programme.The long-term succe

104、ss of the programme depends on integrating the change with the organisations culture and encouraging the workforce through rewards and recognition.Figure 8 provides an overview of the key change management activities which organisations must consider for their core modernisation process.Change manag

105、ement Figure 8:Key change management activities for core modernisationSource:PwC analysis Bring together key stakeholders to discuss the future vision and guiding principles of the programme.Vision and principle setupEnvisionPrepareEnableReinforceImplementShare roles and responsibilities of change m

106、anagement officer and change network comprising change leaders,champions and agentsChange governance frameworkIdentify and engage change leaders,champions,agents and setup a change management officeChange network mobilisationDesign and deliver communications before the programme goes liveCommunicati

107、on management Define the training needs of different stakeholders and develop a training planTraining strategy and planUtilise base content to design end-user training and communication contentCommunications and training content developmentDesign and deliver launch and post go-live communicationsGo-

108、live communication deliveryIdentifying key stakeholders who will manage/lead the successful launch of the change management programmeStakeholder mapping Identify communication channels and develop key messages.Communication strategyUnderstand the impact of global capability centres,design on process

109、,policy and peopleChange impact assessment Conduct surveys to understand the level of readiness of key stakeholdersReadiness surveyProvide training on the new processes,ways of working to the end usersTraining management Conduct surveys to understand the acceptance levels of the stakeholders about t

110、he new ways of workingAcceptance surveyPwC Core modernisation:Enhancing the digital transformation of financial institutions21|PwC Core modernisation:Enhancing the digital transformation of financial institutions21|PwC Core modernisation:Enhancing the digital transformation of financial institutions

111、22|04Key benefits Modernising core banking platforms has many benefits which can improve a banks customer service,operational efficiency and enhance their position in the highly competitive banking landscape.Some of the key benefits of core banking platform modernisation are:resilience,scalability a

112、nd flexibilityaccelerated business outcomesdeep-tier digitisation(innovation and competitive advantage)enhanced operational efficiencyregulatory compliance and security.PwC Core modernisation:Enhancing the digital transformation of financial institutions23|Figure 9 highlights the key benefits of a m

113、odernised core for banks and financial institutions.To ensure that all products and services are aligned with the new methods of operation,banks must establish a clear roadmap for core modernisations implementation.Core modernisation process must be periodically monitored and evaluated and seasoned

114、professionals,consultants and stakeholders from the bank must conduct this review process to ensure that the transformation process can be completed seamlessly.Figure 9:Key benefits of a modernised core for banks and financial institutionsSource:PwC analysisDeep-tier digitisationDigitising core proc

115、esses unlocks the architecture to support digitisation across the board,e.g.omni-channel,STP of journeys,hyper-personalisation through dual core or modernised core.Operating efficiencyCore modernisation with clear objectives and value metrices can help in the reduction of technical debt,simplify pro

116、cesses and provide avenues for cloud adoption and shape the base for restructuring the banking ecosystem for the future.ComplianceHaving an agile and scalable technology core which is always-on,ensures adherence to regulations and customer experience standards.With specific modular business blocks(e

117、.g.payments,wealth)that can be outside the core,each can be managed in a secure and efficient manner.ResilienceThe modernised platform enables modular de-coupled architecture and events-driven interactions,thereby enabling scalability,flexibility and agility.Accelerated business outcomesClearly defi

118、ned processes,prioritisation of critical resources to support key business KPIs,and flexibility around time to-market for new products benefit the enterprise.Data Classification:DC0(Public)In this document,PwC refers to PricewaterhouseCoopers Private Limited(a limited liability company in India havi

119、ng Corporate Identity Number or CIN:U74140WB1983PTC036093),which is a member firm of PricewaterhouseCoopers International Limited(PwCIL),each member firm of which is a separate legal entity.This document does not constitute professional advice.The information in this document has been obtained or de

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124、s a separate legal entity.Please see for further details.2024 PwC.All rights reserved.Contact usGayathri ParthasarthyGlobal Financial services Technology leaderIndia financial Services Sector LeaderPwC IndiaGContributors:Parag Kulkarni Mohit Garg Prashant Raizada Uday Kumar M N Sarthak Bhandari Mridul Kaushik Avneesh Narang Aayush GairolaEditor:Rubina MalhotraDesign:Praveen PrRajdeep SahaPartner,Financial Services AdvisoryPwC IVivek BelgaviPartner and Leader,Financial Services Technology,Alliances and Ecosystems and Cloud Transformation,PwC IVivek PatilPartner,Financial Services AdvisoryPwC I