About HCL Novus Digital Banking
For a long time, banks had been trusted with providing all financial services, but now, this “trust” is shifting towards the non-banking players. There are primarily 3 reasons for this:
- Customer Centricity- This is the age of the customer, who demands fast, cheap, and reliable delivery of services, leading to an increased focus on customer centricity.
- Digital Transformation- Next-gen technology and delivery methodology to create best-in-class solution for the customer is the need of the hour. This digital transformation in banking has been instrumental in enabling digital business.
- Regulations- There is a growing consensus across the world on breaking banks’ monopoly on consumer data. A prime example is open banking regulations being ratified across the globe. Digital payment is another example as well.
All of this have led to a significant increase in spending by banks on digital core banking capabilities, not just to compete, but to also stay 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 digital banking products and services and continued investment to build an ecosystem of continued innovation.
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.
CAGR of neo-banks (100% digital) between 2020-2026
Digital sales for banking products in the UK, 2020
Digital payment value in 2020
- 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 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
- 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
- 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 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
- 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
- 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
- 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
- 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
- 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
- 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.
- $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.
Ecosystem of Partners
Partnerships play a crucial role to ensure smooth delivery of innovation to our clients in the ever-evolving digital banking landscape. HCL has a robust ecosystem of partners. Together, we provide the end users with cutting edge solutions in the areas of Digital Lending, Onboarding, Digital Payments, Reconciliation and Trade Finance.