While the banking sector looks to become more streamlined and competitive, it continues to grapple with growing complexity. Enhancing the 24/7 customer experience, regulations, mergers and acquisitions, new technology and aging platforms are now part of everyday challenges.
New Zealand banks and insurance companies are increasingly realising the benefits of using cloud data over legacy systems and applications to address these challenges.
"Data migration is not just a technical exercise, it is a strategic investment in a company's future growth. By unlocking the potential of data and harnessing its power, businesses can achieve greater efficiency, agility, and innovation, leading to increased revenue and competitive advantage."
Alistair Evans
Director
KPMG Powered Data
Customer-centric core banking migration
Many financial services institutions are looking to decommission, consolidate and upgrade their core banking platforms, replacing them with more responsive, flexible, secure and simple technology.
During this process, we often see three main points of complexity:
Customers expect 24/7 servicing
Gone are the days of switching off services to upgrade data technology over a weekend, only to turn them back on again on a Monday morning.
Migrations must be seamless – continually happening in the background, while service excellence and unceasing transactions continue in the foreground.
Multiple product relationships
Customers have multiple banking product relationships, and multiple systems support them.
Practically, not all products can be transitioned to new platforms at once. As a result, customer data will often need to exist in multiple places simultaneously, with no impact to the consumer, and therefore increasing the migration’s complexity.
Hollowing out the core
The desire to manage core banking transformation risk by ‘hollowing out the core’.
In many instances, banks are gradually and methodically moving product functions away from the legacy core platform to new technologies, rather than doing it all at once.
This requires a strategic approach, comprehensive controls and automated reconciliations that allows for systems, and the data they are custodians of, to coexist.
The solution
Core banking transformation needs to be done in a risk managed and controlled manner that caters for an ‘always on’ customer experience, and so banks are looking to a streaming based data migration approach, also known as ‘coexistence’, to enable it.
We’ve designed innovative data migration patterns for specific challenges like coexistence (the concurrent running of legacy and target core systems). Coexistence migrations typically involve high volumes of data, multiple releases, and support customer-centric transformation initiatives.
Our coexistence data migration pattern allows us to orchestrate migrations across legacy and target core banking and customer servicing systems for multiple financial products with different journeys, business rules and technical constraints. It includes robust automated controls, traceability, and auditability of customers and their data through the end-to-end migration journey. It utilises an iterative approach to allow early testing, learning and therefore de-risking of delivery.
KPMG Powered Data enables a smooth migration of data to a new platform while minimizing client risks and maximizing rewards. Our business centric approach to data migration enables strong data governance and management to be maintained within your organisation.
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Alistair Evans
Director - Digital
KPMG in New Zealand
