ENGAGEMENT SUMMARY
In a time of rapid technological advancements and shifting customer expectations, a leading global bank recognized the need for a comprehensive digital strategy to remain competitive and enhance regulatory reporting. BIP.Monticello was selected to lead the effort to integrate and transition the bank’s multiple legacy regulatory systems into a single new system. With the help of BIP.Monticello, the bank was able to streamline their processes and embrace innovative technologies, which in turn lowered cost, increased efficiency, and allowed the bank to respond to regulatory changes more easily.
CASE STUDY DETAIL
PROJECT BACKGROUND
Tech debt refers to the negative effects of suboptimal coding and outdated infrastructure design that results in poor efficiency, increased maintenance time, and longer development timelines. Large institutions often accumulate Tech Debt because of legacy systems, siloed development teams, time pressures, and limited resources/budgets. Accumulated Tech Debt created a risk for this bank because it made the firm unable to change quickly, which was necessary to maintain regulatory compliance.
Scheduling, investigating, and reducing Tech Debt are challenging and time-consuming tasks. Consequently, large banks seldomly act proactively when addressing Tech Debt. This bank recognized that regulatory orders could function as a much-needed spark to initiate technical integrations, system and application decommissions, and they used their latest regulatory obligations as an opportunity to address otherwise redundant Tech Debt.
BIP.Monticello created value by analyzing the current state of the bank’s tech infrastructure, highlighting pain points (outdated, high-cost, low-efficiency systems) and proposing a target state infrastructure that minimized these pain points while maintaining the same workflows. Upon agreement on the proposed approach, BIP.Monticello consultants led the transformation process.
ENGAGEMENT OBJECTIVES
Having many systems at the beginning of the data pipeline created a major vulnerability. This design led to inconsistent data flow analysis and structure, making it challenging to achieve a holistic view of the data journey. As a result, the bank had to maintain redundant systems. The discrepancies in the data flow also introduced potential errors in regulatory reporting. Reducing this system redundancy and standardizing data flow processes led to cost and resource savings. Moreover, a unified and clear data structure would streamline regulatory compliance, minimizing the risks of discrepancies in reports.
In the design phase, a target state document was created to present a design that reduced Tech Debt and simplified the data workflow. The new design would remove several redundant systems early in the data pipeline and replace them with a single system that served the same function. While making design decisions, the team took into consideration cost-benefit analysis findings, user research, upper-management input.
In the implementation phase, the focus was to run the project’s daily advancement by managing development assigned to technology resources. These efforts included daily scrum calls and running 10-day sprints via JIRA. Additionally, Confluence and internal project trackers were used as documentation repositories to report the progress on deliverables to stakeholder management teams.
BUSINESS VALUE
By leveraging our knowledge and experience, we were able to successfully design and implement an end-to-end Tech Debt mitigation effort. With BIP.Monticello’s help, this leading bank was able to reduce costs and diminish overdue Tech Debt. This success was measured via several Key Performance Indicators:
Cost Savings: The total monetary savings were calculated post-implementation by comparing the operational costs before and after the migration.
Operational Efficiency: We measured the time taken to address and resolve technical issues before and after the transformation. A reduction in resolution time indicated an increase in operational efficiency.
Stakeholder Satisfaction: By regularly engaging in stakeholder and management feedback sessions, we were able to assign a general approval score to the current state. An increase in approval score indicated an increase in overall design satisfaction.
