Mergers and Acquisitions has always been a significant importance in shaping the Financial Services industry. Merger of two financial institutions is always been an intricate process, which includes the aggregation of organization structures, business processes, IT systems and cultural shift. These challenges are more eminent in Banking sector because success of merging Banks depends entirely on the efficient integration of business processes and IT systems.
Why IT System Integration is critical in Mergers and Acquisitions
The backbone of a successful bank merger is the seamless integration of IT systems and business processes. To reduce problems arising out of difference in business segment/domain related IT setup, banks should plan for the following during merger:
Identify critical domains that may need quicker implementation during merger and plan for enough resources for the same
Integration cost is based on the complexity of domains of the merging banks hence plan for such costs in advance
Map overlapping processes between merging banks to identify duplicate roles to rationalize
Rationalize applications by identifying similar/overlapping functions
Retire applications of lower business value, retain applications of highly critical nature and Re-engineer outdated applications
Rationalization of Technology and Business Processes
IT is also an enabler for banks to generate new sources of customer value and maintain greater customer retention during the merger, leading to fewer service disruptions and thus continued customer satisfaction. Banks should properly plan the following for the efficient merger:
Reengineering of business processes and workflows
Rationalization of business applications
Merger of databases and file systems
Migrating data to a common platform
In a Bank M&A scenario, Go-Live Faster understands the critical connection points from IT perspective, interfaces and more importantly what it takes to get into BAU mode faster and safer with the desired metrics.
Go-Live Faster offers:
Functional Testing
Data Migration Validation Services
Interfaces Testing
PMO Support
Custom Branded User Guides and Training Videos
Test Automation Strategy
M&A: IT Readiness Assessment
If you would like to know more on how Go-Live Faster, a Banking domain specialist tech company, which specializes in making Banking Implementations Faster, Safer and Predictable, in Banking M & A scenario please connect with us: [email protected]