Our client is an established market leader whose solutions have been used by banks for decades. Most of these customers still rely on legacy mainframe-based solutions for core banking processes such as account management, loans, mortgages, and payments. While these solutions are still valued for their reliability, they are also expensive to maintain and limit a bank’s ability to add new products and services.
Cloud-based core banking solutions from a new generation of fintech companies offer a path for modernization, but combining this approach with existing technology represents a huge technical hurdle, especially given the need to maintain momentum with continuous services for customers and compliance requirements.
The acquisition of a cloud-native core banking provider gave the client the platform it needed to begin transforming its architecture. The challenge would be to add functionality beyond the core functions enabled by the cloud solution. Integrating the fraud and AML screening capabilities required by the client’s existing customers—and those served by the acquired company—was a challenge requiring additional project management and software programming experience from the KPMG Lighthouse network.
An acquisition creates opportunities and challenges in the cloud
Before
After
Future
Replace aging applications that differed across divisions and subsidiaries
Reduce manual, disparate processes freeing up more resources for advanced analytics
Enable enhanced reporting and make it more widely available across the enterprise
Act with greater speed and agility to capture value in acquisitions
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Company-wide
opportunities
Process hundreds of thousands of transactions per month with greater efficiency
Reduce 10,000+ manual journal entries per period
Decrease >3-week close
Shorten the >3-month annual budgeting cycle
Provide better support for a growing e-commerce business
Control rising finance function costs and derive greater value
Finance
opportunities
Reduce 10,000+ manual journal entries per period
Decrease >3-week close
Shorten the >3-month annual budgeting cycle
Provide better support for a growing e-commerce busines
Control rising finance function costs and derive greater value
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Improve technical capabilities to keep pace with increased hiring needs
Reduce dependence on IT and tech resources for supporting and enabling continuous compliance with more than 800 collective bargaining agreements
Unify and automate workforce administration processes across the enterprise
Eliminate the need for employees to learn new systems and interfaces as they move from recruitment to training to managing benefit
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HR
opportunities
Before
Next
After
The client now has a cloud-native, scalable fraud detection solution that delivers swift, real-time fraud scoring and AML alerts.
This solution is available to the client’s existing customers as well as financial institutions already using core banking software from the acquired company or other providers.
Application programming interfaces (APIs) allow data to move between previously separate systems. This architecture can also be used to enable data sharing with other core banking products.
This complex cloud modernization project was planned, designed, and executed on schedule, with full collaboration between KPMG and client teams.
A cloud-based fraud solution for a range of customers
Developed all the necessary processes to support a single, modernized digital platform serving the entire enterprise
Migrated 290,000 employees from legacy systems to Oracle Cloud
Increased insight-driven decision making across functions, driving performance and growth gains
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Company-wide
success
Decreased balance sheet reconciliations
by 85%
Achieved a consolidated retail and
corporate close within a shortened period
Reduced the types of P&L statements from 100+ to 4
Reduced operations costs across the board
Enhanced availability of data-driven insights that help to capture maximum value during acquisitions
Achieved a consolidated retail and corporate close within a shortened period
Reduced the types of P&L statements from 100+ to 4
Reduced operations costs
across the board
Enhanced availability of data-driven insights that help to capture maximum value during acquisitions
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Finance
successes
HR
successes
Deployed a custom application for union-rule processing enabling a single HCM platform to administer benefits to all employee populations under 800+ complex union agreements
Created a digital-first, digital anywhere experience resulting in higher employee engagement
Reduced new-hire onboarding time
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Reduced new hire onboarding time
Streamlined and improved the process integration of new employees post-acquisition
Integrate processes and technology across the employee lifecycle from recruiting through compensation and performance
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KPMG will continue to support the client in maintaining and upgrading the new fraud solution, leveraging next-generation analytical technologies.
Success with cloud-based fraud protection and AML screening paves the way for applying the same approach and technologies to other banking functions and enables future development of new products and revenue streams.
Continue to enhance analytics-driven planning and forecasting
Optimize the supply chain
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Company-wide
vision
Achieve a continuous, virtual accounting close
Achieved a consolidated retail and corporate close within a shortened period
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Finance
vision
HR
vision
Establish a continual feedback-and-improvement loop based on quarterly HR reports from the field and deployment of new capabilities
Migrate payroll, benefits, and absence management to Oracle cloud for 2023
Insource benefits administration
Fighting fraud is only the beginning
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After
After
Future
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