Intel Report Core Replacement - Flipbook - Page 22
Steps for a Successful Full Replacement
Seattle Bank converted its core in 2020, and the bank’s experience provides some best practices for a full core conversion. The process will last months to years. Having a CIO in place
who understands how to implement a core replacement and can manage the impact on current
employees will aid in the modernization. Enact these steps to ensure the bank can respond to
any concerns that may arise:
• Develop an action plan for employees. The more detail that this plan has, the better, providing responsibilities, expectations and deadlines. By communicating each employee’s role, you can
also ensure that they understand the importance of the job and the fact that they may have to
work harder than normal during this process.
• Don’t skimp on data mapping. Much of the organizational fears of a core replacement
come from concerns over losing data. The data-mapping process will ensure that the data is
accounted for and available, post-replacement. Take painstaking efforts to track and include all
necessary data for the conversion, which will ease much of the anxiety over the replacement.
Give extra focus on the largest accounts of the bank, to best ensure the vital data makes it
through the conversion.
• Communicate with the C-suite. Have regular check-ins with the C-suite to update them on
the process and address any concerns. If they don’t have the information at hand, they will begin
to question the process, which could sink the entire project. This includes updating them on
issues that arise during mock runs.
• Embrace mock exercises. Test runs make or break the replacement process. If the mock
exercises become a debacle, bank leaders will pull out of the project. Ideally, these exercises will
provide the bank with insights on what needs to be addressed. This will give clarity to what data
needs more mapping, what tools may need to be implemented to ensure a successful transition
and what parts of the process work. Through the mock runs, institutions can then turn to vendors and consultants to determine the best workarounds for any concerns that arise.
• Lean on vendors. The bank is likely working with third-party vendors and consultants during
the replacement process, in addition to the core provider. It’s important for the CIO and tech
leaders to lean on all three groups to ensure a successful replacement. You have put them in
place for specific reasons, whether they offer a technological solution or provide replacement
expertise. Use them throughout the mapping and test-run process to ensure that the bank has
what it needs for a successful launch of the new core.
20 | FINXTECH INTELLIGENCE REPORT
POWERED BY BANK DIRECTOR