Best practices for updating your basic Core Banking Solution:
Updating major Core Banking Solution is no easy task, and bankers sometimes compare these system migrations to open-heart surgery. This clearly shows how difficult these upgrades can be and how a smooth migration is crucial to the normal business of the bank. A simple mistake can cost a lot more than you expect, so handle it with care.
There are some practices that can be followed to streamline the process and make things happen without too many complications. They exist:
• Perform data cleanup and quality check before migrating. You must clean up the data from the old system yourself so that the newly entered data in the input system is of high quality and largely free of inconsistencies. The UCIC (Unique Customer Identification Code) is an important initiative that the bank must take to know its real customer base and comply with regulations.
• Effect and implementation of a work program.
This is what will determine everything in the update. The migration of your CBS involves very complicated and time-consuming processes. If you don’t stick to a schedule and try to take things step-by-step in a disorganized way, you’re wasting time and likely to run up your budget. Everything goes more smoothly with a well-thought-out plan. Following a schedule can also help you make better decisions. When you make a plan and have everything behind you, everything goes smoother.
For example, if you don’t stick to your schedule and try to get a second opinion on something, or if you need additional meetings and conference calls, you could lose one, two, three weeks in the process. Sure, some decisions aren’t perfect and leave mistakes behind, but they can be handled faster and cheaper than making a perfect decision after analyzing all possible outcomes. Remember that what really comes out of your pocket is the cost of the people working on the project, and every extra working day is another day of cash flow.
• Create a group of experts/advocates from different departments to arbitrate conflicting views and opinions.
This elite corps must have members from all possible departments and must meet at least twice a month to resolve disputes or make final decisions about any uncertainties. The experience that this body brings is essential to keep the project running. These members know how to resolve conflicts and are better able to outline the best way forward from a top-down perspective.
• Do not attempt to perform multiple tasks at the same time.
You have a program that connects the whole procedure, so step by step. Start with small steps and gain momentum to do things one at a time on schedule instead of trying to plow. If you are in a rush, it will only add complications and errors rather than make the process easier, and will likely slow down and even cause delays.
• Divide larger activities into smaller side activities.
As simple as it sounds, it’s not something you do naturally. A modular approach to implementation greatly improves the smooth operation of any process flow. You can implement it, practically apply it, get feedback, make changes and redeploy smaller modules much faster, and move on to the next one.
• Perform comprehensive user acceptance testing (UAT).
Ask some end users to try out the new system before making it public. These users discover things that are not ideal, things that could work differently and more efficiently, and so on.
We hope these tips will help you replace your existing primary banking solution with a new one. As a provider of basic banking services, we are aware of the concerns of various stakeholders in the implementation process and it is very important to mitigate them.