Overview

One of the recent Future of Banking Consumer Surveys indicate that nearly two in three consumers would trust Amazon to handle their financial needs. For a long time, banks had been trusted with providing all financial services. What has led to the shifting of this “trust” from banks to other players? There are primarily 3 reasons:

  • Customer Centricity- This is the age of the customer. And the customer today demands fast, cheap, and reliable delivery of services, leading to an increased focus on customer centricity.
  • Digital Transformation- With its advent from merely e-banking services, digital transformation in banking technology has come a long way with using next-generation technology and delivery methodology to bring the best-in-class solution to the customer. This digital transformation in banking has been instrumental in enabling digital business.
  • Regulations- There is a growing consensus across the world on breaking the monopoly of banks on the pot of gold that is consumer data, which can then be processed in a number of ways to provide new services to the end customers. A prime example is open banking regulations being ratified across the globe. Digital payment is another example as well.

All of this has led to a significant increase in spending by banks on digital core banking capabilities, not just to compete, but in fact, to remain relevant. HCL’s vision is to enable and empower financial institutions to realize the full potential of open banking and “Open Finance” for their digital business.

HCL also aims to delight consumers with the right products and services in digital banking, such as digital payment options.

To this effect, HCL is investing heavily in continuous innovation to further open banking and build digital banking capabilities for various financial institutions.

Business Situation

Leaders of top banks across the globe are defining the future of banking service providers as technology companies with a license. But transformation of this traditional legacy business to a digital business will require billions of dollars in investments, the restructuring of teams, reimagining of the entire banking technology stack, and the adoption of a business view that hinges on customer centricity. Henceforth, we are in the middle of sweeping digital transformation programs in almost all across the industry to enable digital banking.

46.5%

CAGR of neo-banks (100% digital) between 2020-2026

55%

Digital sales for banking products in the UK, 2020

$ 700 trillion

Digital payment value in 2020

HCL Solution

Success Stories

Singaporean Multinational Banking and Financial Services
Strategic partner in Mortgages for Large Australian Bank
Overall cycle time reduction, CSAT improvements and reduction in financial stress
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Business Challenges:
  • Maintain and expand the leading market share position by simplifying the business and being the “best in digital”
  • Customer participation and transparency in the loan lifecycle process.
  • Creating a seamless user experience for lending across various customer touch points
HCL Solution:
  • HCL has been a decade old strategic partner of Home Lending business of the Bank and have grown to 500+ engineers during the course.
  • Solution framework developed by HCL is now being extended to automate all processes in Home Buying, with centralized decision engine to house & manage all Home Lending rules
  • Distributed Agile Model at offshore successfully implemented
Benefits:
  • 30% Overall cycle time reduction of application processing
  • 45% Improvement in CSAT due to relationship-based pricing discounts
  • 12% Reduction in financial stress of the sanctioned loans
Traditional 'Big Four' Irish banks
Built a digital retail banking platform for a top European Bank
API and microservices led architecture, cloud enabled platform, EU GDPR compliance
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Business Challenges
  • Threat to the leading market position due to legacy systems
  • Tech landscape was not nimble and easily customizable, causing customer dissatisfaction
  • Increased focus on fraud prevention and risk management due to business needs and regulatory requirements
HCL Solution:

HCL offers development, testing and integration services in various key initiatives as a part of the overarching program to build and enhance the retail banking platform

  • Implemented unique omni-channel digital platform for retail banking customers
  • End to end platform-led customer experience management services | Device agnostic service focused on customer micro journeys
  • Service Layer Development for Big Data Lake | Development, Enhancement and Support project of DWH ETL process; Re-engineering of Treasury ETL application
  • Migrating 2500 reports from SAP BO 3.1 version to SAP BO 4.2 version with all dependent components
  • Complete integration services for Simility (fraud prevention) implementation
Benefits:
  • API and Microservices led architecture- Low footprint, easily pluggable, future proof and scalable
  • Cloud enabled platform with reusable components – HCL was able to reuse components from the first app built to build the award winning easybank app
  • Compliance to EU GDPR and Austrian data regulations
  • Cost benefit of ~40% in digital platform implementation
Life and General Insurance Agencies in Singapore
A US Fortune 200 insurance company implemented Voice of the customer to improve member engagement
Increase in multi-product customers, new customer acquisitions and market penetration
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Business Challenges:
  • Siloed Data within the organization
  • Limited ability to leverage data
  • No single view of customer profile and interactions
  • Advisors were not trained to look for opportunities across products
HCL Solution:
  • Leveraged data virtualization to break down data silos without having to physically replicate data to an additional data warehouse
  • Created dashboards that allowed advisors to see customer profile, interactions and recommendations on a single screen
  • Data was collected and transformed to provide a single view of the customer, this data was then used by the data science team to create models that would predict churn, and recommend products
  • HCL devised a change management strategy that would educate different stakeholders about the new system and how to leverage the data it was providing across all lines of business
Benefits:
  • 1.5X Increase in multiproduct customers
  • 35% Increase in new customer acquisition compared to control group
  • 7% Market penetration increase
  • 23% Reduction in campaign costs
Australian Multinational Bank
A leading and traditional bank in Ireland implemented PSD2 open banking API solution
Shift left testing’ approach, system and performance testing automation
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Business Challenges:
  • To create, adopt and maintain a common standard for open banking API
  • Tighter deadline for PSD2 Open banking Regulatory compliance
  • Handling Exceptions/Error Framework
  • Lack of automation testing in the current landscape
HCL Solutions:
  • Built more process API's to encapsulate business process orchestration.
  • Built system API's to access legacy system & database to expose data in canonical formats.
  • For API led connectivity, built integration flows with reusable approach to reuse the logic in & across the integration platform.
  • Solutions built in adherence to PSD2 open banking regulatory standards
  • All regulatory releases – CMA1, 2 & 3.0 delivered on time
  • Built common error framework, to capture the business/logical errors to handle business requirement across the banking domain
  • ‘Shift Left Testing’ with a greater focus on automation testing - 95% Automation Testing, 5% Manual Testing
  • 100% automation in system and performance testing yielded €1.2M saving in 2019.
Benefits
  • $1.2 Million Savings with 100% automation in system & performance testing
  • 80% Offshoring reduced significant delivery cost
  • 95% Automation Testing with ‘Shift Left Testing’ approach.