KPMG takes bank on digital transformation journey
KPMG helps create a trusted cloud strategy, embedding risk and compliance.
Client
Major national bank
Industry
Financial services
Primary goal
Upgrade IT infrastructure to boost digital transformation
Technology
Leading financial services technology solution
For more than 170 years, a major KPMG banking client has been serving the financial needs of customers ranging from individuals and small businesses to corporations and government enterprises. In fact, more than 12 million customers use the bank for lending, credit cards, cash management, and investment services. To support a move to a digital-focused, thin-branch strategy outside its existing branch network, the bank planned to modernize and transform its legacy mainframe infrastructure to a cloud-native digital banking solution.
KEY OUTCOMES
Making a measurable difference
- A new digital infrastructure to help the bank better serve its growing customer base
- Improved customer experience delivered through the optimization of customer personas and customer journeys
- Top-tier compliance embeds process automation and clear risk linkages for smooth adaptation to future business cases
Client transformation journey
Click on each part of the journey to learn more about our client’s transformation.
Success in a large-scale transformation initiative requires careful planning and strong cross-functional collaboration. Our team of KPMG professionals collaborated with the client and vendor to establish a deep understanding of their IT and business objectives to drive strategic insights. Together, we guided the successful build of a new digital infrastructure that prioritized customer experience and embedding compliance by design principles for sustainability.
Chad Polen
Partner, Advisory, FS Risk, Regulatory & Compliance, KPMG LLP
How KPMG guided its banking customer through a complete digital overhaul
KPMG’s banking client faced a formidable task. It sought to completely upgrade and modernize its IT core and business operations to meet future and unanticipated needs while utilizing legacy data—all while embedding compliance obligations in a way that supports the bank’s digital transformation. To achieve this, KPMG guided the bank through the development and implementation of an agile compliance workstream strategy based on our understanding of regulatory requirements. This helps create trust among the bank’s many stakeholders: customers, regulators, employees, and investors. Along the way, KPMG helped its banking customer learn four key lessons.
1. Strategy is key
KPMG helped the client gain a deeper understanding of what its IT and business strategy should be going forward, as it expanded and took on new lines of business. This included helping them pick the right technology and platforms, articulating the desired path forward for the bank, and how to scale up new initiatives. This helped ensure the bank’s new digital infrastructure was designed for the right tasks.
2. Execution takes planning
It takes careful planning to overhaul the way a large bank does business. KPMG collaborated with its client to select an IT vendor, embed consultant teams in the appropriate business units, determine what processes could be automated versus what required a human touch, and help ensure that the bank’s new platform met its appetite for risk as well as all compliance needs.
3. Collaboration makes the difference
Tasks such as digitally transforming a large national bank require considerable resources. One company typically cannot do it all, and KPMG is no exception. We worked with a wide range of partners for our banking client. We cooperate with them because it is good business—and the client appreciates it.
4. Not everything claiming to be new really is
As part of KPMG’s process with its banking client, KPMG looked closely at the technology providers who hoped to land the business. The list of these players is small, so making the right choice is important. KPMG had developers open their code stack and walk through their process and how they deploy and maintain their solutions. One vendor claimed their code was new from the ground up, but KPMG found code libraries that were some 20 years old. KPMG developed a scorecard that the client could use to decide.
Turning insights into opportunities
KMPG Lighthouse, our Center of Excellence for Data, Analytics, and Artificial Intelligence (AI), combines the latest technologies and capabilities alongside our deep-rooted domain knowledge to accelerate innovation and drive speed and relevance to our clients’ businesses. It focuses on solving complex business issues with analytics, rather than taking a technology-first approach. And it supports ideas in emerging technologies, such as Internet of Things, blockchains, and AI.
Meet the team that made the difference for a bank seeking to boost digital transformation
Are you looking for a core modernization strategy that will help you keep pace with changing customer desires and increased competition? Reach out to us today.
Celeste Diana
Principal, Corporate Strategy, KPMG US
Chad Polen
Partner, Advisory, FS Risk, Regulatory & Compl, KPMG US
Mark Shank
Principal, Advisory, Lighthouse, KPMG US
Celeste Diana
Principal, Corporate Strategy, KPMG US
Chad Polen
Partner, Advisory, FS Risk, Regulatory & Compl, KPMG US
Mark Shank
Principal, Advisory, Lighthouse, KPMG US
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