{"id":3041,"date":"2018-03-07T08:00:22","date_gmt":"2018-03-07T16:00:22","guid":{"rendered":"https:\/\/cm-edgetun.pages.dev\/industry\/blog\/uncategorized\/embracing-a-digital-operating-model-a-call-to-action-for-banks-3\/"},"modified":"2023-05-31T16:17:38","modified_gmt":"2023-05-31T23:17:38","slug":"embracing-a-digital-operating-model-a-call-to-action-for-banks-3","status":"publish","type":"post","link":"https:\/\/cm-edgetun.pages.dev\/en-us\/industry\/blog\/financial-services\/2018\/03\/07\/embracing-a-digital-operating-model-a-call-to-action-for-banks-3\/","title":{"rendered":"Embracing a digital operating model: a call to action for banks (3)"},"content":{"rendered":"

Find them on LinkedIn:\u00a0David Cox<\/a>\u00a0&\u00a0Annette Harris<\/a><\/p>\n

Part 1: broken experiences<\/a>\u00a0|\u00a0\u00a0Part 2: engines of innovation<\/a>|<\/a>\u00a0\u00a0<\/a>Part\u00a03:\u00a0out with the old<\/a><\/p>\n

Part 3 of 3: out with the old<\/em><\/h2>\n

This is the final post of our three-part series. In our first post<\/a>, we discussed the importance of developing a customer-centric operating model. In the second<\/a>, we looked at the seismic shifts underway in the financial services industry and the need to move quickly to incorporate a new data architecture and an analytics framework for a new digital operating model. Now we will turn our focus to how banks can make it happen.<\/p>\n

The modernization trap<\/h3>\n

One of our customers recently had a stream of projects to improve their business. But they freely admitted they were struggling to do all of them with their available resources and bandwidth. Then they shared with us a study from another firm they had commissioned a few years ago listing the same projects. They had plans to move to the cloud one day when all those projects were complete.<\/p>\n

It quickly became apparent the bank was trying to modernize its environment. But they weren\u2019t transforming it. They were doing all the things other banks do but they weren\u2019t leading the market\u2019s transformation. In fact, by the time they succeeded in modernizing their environment, they were more than likely to be overwhelmed by the disruption now prevalent in the industry.<\/p>\n

It is not enough today to have cloud capabilities. The operating model needs to be cloud-based because such a model dramatically increases speed, agility, and efficiency. Being native to the cloud is a different way of working: it\u2019s agile; it\u2019s flexible; and there\u2019s enhanced speed to market.<\/p>\n

In with the new<\/h3>\n

But how do you become cloud-based when you have invested so much in your legacy infrastructure? Take the necessary steps to leave it behind. Embrace the idea of creating an altogether new banking model, a digital banking model, which we might call \u201cNewBank\u201d (as opposed to \u201cOldBank\u201d).<\/p>\n

The concept is a simple one. Instead of trying to take OldBank to the cloud\u2014an environment that operates under a very different set of processes and procedures\u2014build a NewBank model, born in the cloud. Run the two in parallel while you transfer data and applications from OldBank legacy systems to NewBank.<\/p>\n

There are four, key benefits to this approach:<\/p>\n