Core Systems

02:55 PM
Nancy Feig
Nancy Feig
News
Connect Directly
RSS
E-Mail
50%
50%

A New Foundation: SOA Implementation and Bank Transformation

Implementing a successful service-oriented architecture starts with making the right decisions early on in the process.

The charge-back model adds complexity, Unisys' Ott notes. "Pay-as-you-go makes it harder," he comments. When it comes to cost allocation, Ott recommends more of a federated approach, in which everyone puts in money and investment up front, even though some lines of business may not experience the benefits of their investments for years.

And inevitably, with new governance policies comes the need for new organizational models. An SOA implementation will bring about many changes in the financial institution, including new partnerships between business and IT, according to TowerGroup, which asserts that such partnerships are integral to overcoming the challenge of breaking down the walls between businesses in the bank.

Measuring the success of SOA after deployment can be less of a challenge -- especially if a bank has established clear goals ahead of time. Wachovia's CIB unit measures its SOA results with two indicators: time to market and the number of reusable parts, relates the bank's Bishop. So far, he says, it has experienced about a 40 percent cost avoidance over three years using SOA rather than a traditional technology architecture.

Bishop offers advice for banks just starting on their SOA journey. "You've got to focus," he says. "You've got to be committed. You need to do it in incremental building blocks. SOA needs to be business-aligned and needs to have a top-down map and a bottom-up approach." And bank executives need to know what they're getting into: "It's a full-time part-time job for even the highest-ranking executives," Bishop says. **

Related Articles

Service-oriented Architecture is helping banks achieve a single view of the customer

Banks are turning to multichannel integration to deliver seamless customer service, boost speed to market and increase organic growth

Previous
5 of 5
Next
Comment  | 
Print  | 
More Insights
Register for Bank Systems & Technology Newsletters
White Papers
Current Issue
Bank Systems & Technology - August 2014
Modern core systems are emerging as the foundations of effective channel integration and customer engagement initiatives.
Slideshows
Video