1. Is it Time for Real Time?
An Industry dialogue on the benefits,
challenges, implementation
approaches and lessons learned
2. Panel Participants
Moderator:
Jim Neckopulos – Executive Director
Panelists:
Rick Kuhn: Director of Performance Management
Don Miley: Design & Development Director - Deposit Appls
Doug Gross: General Manager
Michael Upton: Digital Customer Experience
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3. Rick Kuhn: Director of Performance Management
Organization Profile
• First Niagara Bank, N.A., is a multi-state community-oriented
commercial bank
– 430 branches, approximately
– $35 billion in assets,
– $28 billion in deposits
– 6,000 employees
– Upstate New York, Pennsylvania, Connecticut and Massachusetts
• First Niagara leverages the MISER core system, which is a real time
engine supported by FIS. The past four years have been a period of
rapid growth for First Niagara, where the Bank has grown by more than
4 times as measured by assets.
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4. Rick Kuhn: Director of Performance Management
• Real time processing is common at community banks, but many do not
recognize the competitive advantage that real time provides.
• What is First Niagara doing to leverage real time processing?
– The goal is to “finalize” all transactions within 90 minutes.
• Virtually eliminate cross-cycle adjustments
• Creates significant improvement to customer experience
• Significant reductions in expenses relating to transactional corrections
– Open the Core to exponential increases in intraday notices and reports
– Architectural
• Reduce risk of contention to the Core by leverage an Operational Data
Store
• Leveraging service layers to perform repeatable processes will reduce
development and testing time.
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5. Don Miley: Design & Development Director of Deposit Applications
Organization Profile
• BBVA Compass is a leading U.S. banking franchise with operations throughout the
Sunbelt Region and ranks among the top 20 largest U.S. commercial banks based on
deposit market share. Operating 716 branches in Alabama, Arizona, California,
Colorado, Florida, New Mexico and Texas. BBVA Compass ranks among the largest
banks in Alabama (3rd), Texas (4th) and Arizona (5th). BBVA Compass has been
recognized as one of the nation's leading Small Business Administration (SBA) lenders,
earning 'Lender of the Year' honors in 2009 and 2010.
• In 2011, BBVA Compass announced that it would replace it’s legacy core banking
systems with Accenture’s Alnova core banking application in an effort to achieve real-
time processing capabilities, improve time to market, and respond more quickly to
customer needs and expectations. Customer files, checking, savings, CD and IRA
deposit accounts and cards are all on our new core system. Loans are scheduled to
deploy in Q2 2013.
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6. Don Miley: Design & Development Director of Deposit Applications
Is it time for real time? It’s an infrastructure decision!
• New core banking platform is an enabler for further expansion
– Foundation now in place to grow channels and product offerings
– Account opening times cut in half
– Product time to market reduced by up to 75%
– Optimization of straight through processing (Ex: image capture)
• Key technology elements include Service Oriented Architecture (SOA), Enterprise Service
Bus (ESB) and Business Process Management (BPM) 1
– Elements benefit all areas of bank including customer service, sales, risk management
and product development, among others
• Improved and more accessible banking experience for customers1
– Access to banking functions via new channels
– Instant reconciliation of transactions
• Tailored delivery of product offerings to customers1
– Highly granular segmentation based on detailed customer information
• Superior operational efficiency and cost savings1
– Redundant operations across multiple legacy applications unified
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1. Celent Model Bank 2011, June 2011
7. Don Miley: Design & Development Director of Deposit Applications
Is it time for real time? It’s a business decision too!
• More than a technology project
– Must align with the Line of Business’ vision
– Must include elements of change management and process redesign
• Requires a paradigm shift within the organization
– Organization must begin to think in real time
– If in the end, employees try to make the new systems work the way the existing ones
worked, the transformation was a futile effort.
• Creates advantages for the customer
– Our customers expect information in real time
– We can create innovative products/features for our customers
– We can offer customers products/services they can’t get elsewhere
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8. Doug Gross: General Manager
Organization Profile
• Clear2Pay is a global provider of payments software to financial institutions
and processors for financial institutions. The Clear2Pay platform was designed
from the ground up as an enterprise payments processing platform/hub.
• Clear2Pay facilitates banks and financial organizations in their provision of
payments services, whether they be Card, ACH, Branch, Bulk, High Care or
International payment transactions.
• Clients include global and major regional financial institutions such as Wells
Fargo, Banco Santander, Crédit Agricole, BNP Paribas, The Federal Reserve,
Royal Bank of Scotland, The People’s Bank of China (PBOC), Bank of East
Asia, Rabobank, Bank of New York Mellon and Commonwealth Bank of
Australia.
• Recently, Clear2Pay was recognized for excellence in payments technology in
Global Finance magazine’s 2013 survey of the World’s Best Treasury & Cash
Management Providers.
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9. Doug Gross: General Manager
• Customers expectations are re-baselined – they expect less complex
and increased convenience for payment services
• Internal customers in credit and risk areas require real time information
to make the right decisions
• The path is proven and best practices exist
• Case studies are increasingly available
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10. Michael Upton: Digital Customer Experience
Organization Profile
• Capital One Financial Corporation (www.capitalone.com) is a financial
holding company whose subsidiaries, which include Capital One, N.A.
and Capital One Bank (USA), N.A.,
• Headquartered in McLean, Virginia, Capital One offers a broad
spectrum of financial products and services to consumers, small
businesses and commercial clients.
• Capital One, N.A. has approximately 900 branch locations primarily in
New York, New Jersey, Texas, Louisiana, Maryland, Virginia, and the
District of Columbia.
• A Fortune 500 company, Capital One trades on the New York Stock
Exchange under the symbol “COF” and is included in the S&P 100
index.
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11. Michael Upton: Digital Customer Experience
Real time digital is just better…
• Customers compare their digital banking experience against everything
else that’s digital
• If you are a banking customer real-time digital is just better
• If you are a financial services company real-time digital is just better
• Real-time digital improves customers trust in their financial institution
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12. Michael Upton: Digital Customer Experience
• One size does not fit all. Customers’ value real-time for some
payments more than others.
• Payments that “Should” be real-time – Internal “good funds” money
movement is a no-regret low risk service that is foundational to
supporting multi-product ownership
• External payments and transfers – ACH has time based rules and
increased risk
• Customer Segmentation needs can and should differ
• Mobility is the new normal and is influencing money movement
strategies based on time & location
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