DXC CBAAS (CONNECTED BANK-AS-A-SERVICE) - AN OPEX ONLY, OFF-THE-SHELF SOLUTION, WHICH ENABLES BANKS TO RESPOND TO COMPETITIVE CHALLENGES WITH ...
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DXC CBaaS (Connected Bank-as-a-Service) An OpEx only, off-the-shelf solution, which enables banks to respond to competitive challenges with rapidly deployable innovative new products and services February 2021
DXC Connected Bank-as-a-Service:
Transforming the art of the possible with
Microsoft technology
Competition in banking, and the wider financial services
market, has never been tougher. The emergence of cloud-
based ‘challenger’ banks, the arrival of new entrants targeting
premium customer segments, the move away from branch-
based banking to digital banking—in a short period of time,
the competitive landscape has changed beyond recognition.
If ever there was a time for banks, and building societies, to respond to the market,
through innovative new products and services, it’s now.
New products and services are dependent on IT systems to deliver them. Yet banks’
IT priorities are elsewhere: simply put, banks’ existing IT priorities and existing
so-called ‘technical debt’ in the form of in-house systems are acting as a brake
on their ability to support innovation with new products.
If ever there was a time for banks,
and building societies, to respond
to the market, through innovative
new products and services, it’s now
The ‘manage IT’ versus ‘focus on growth’ conundrum
The facts speak for themselves. Banks’ IT organisations already face considerable
challenges, chiefly with maintaining existing systems and responding to regulatory
pressures: keeping IT infrastructure up to date, upgrading outdated software,
following security best practices, deploying process automation in order to reduce
cost pressures, help desk issues—the list is lengthy.
Constrained budgets don’t help. In a low interest rate environment, net interest
margin—which drives income—is falling, putting banks’ overall budgets under
pressure. Yet banks find themselves unable to reduce their IT budgets accordingly
as IT is seen as too critical, and the need to maintain existing systems too important.
Even in those relatively rare instances when a bank’s IT budget is increased,
it’s usually for reasons other than innovation including upgrading outdated
infrastructure, addressing security concerns or accommodating changes to
regulation. In fact, according to one recent survey, of the top nine factors
prompting IT budget increases, just one was associated with increasing revenue.
2
Is there a solution?
A way to square this awkward circle?
In short, yes.
Imagine another way to deliver on that innovation agenda.
Imagine…
• a core system of record, sourced from one of the world’s leading developers of
commercial off-the-shelf banking systems;
• systems of customer and employee engagement, again sourced from a specialist
developer, linked to that core system of record and fully integrated across all
channels—mobile, contact centre, kiosk and ATM, Internet and branch;
• systems of insight sourced from Microsoft, the world’s largest software company.
Imagine all of this seamlessly integrated by DXC Technology, running mission-critical
systems with the latest technology innovations to deliver better business outcomes
and new levels of performance, competitiveness and experiences for its customers.
Imagine also these systems running in the cloud, seamlessly connected to your
existing IT infrastructure. And imagine, too, that—if you wish, or require it—the skilled
staff that are part of our hugely comprehensive Business Process Services (BPS)
banking services capability can support your customers with the innovation products
in question, answering their queries and helping them to transact.
Finally, imagine that all this is available as a service, paid for as an operating
expense, either monthly or quarterly. Rather than through costly capital investment,
with its naturally associated depreciation, and impact on liquidity and capital
adequacy.
Imagine no longer. With DXC Connected Bank-as-a-Service, all of that—and
more—is proven reality, available today.
Imagine systems of customer and
employee engagement, linked to
a core system of record and fully
integrated across all channels
and with systems of insight… all
seamlessly integrated together
3
What is DXC Connected Bank-as-a-Service?
Quite simply, DXC Connected Bank-as-a-Service has been
conceived by DXC Technology to help transform the way banks
and building societies do business. It’s a complete retail and
commercial, fully-scalable digital banking solution—enabling
banks to rapidly launch new products and services, enhance
customer engagement, reduce capital investment in new
technology, and begin the process of slashing technical debt.
It includes the core systems of record, systems of engagement and systems of
insight, and can co-exist with current infrastructure, layering on top of what is
already in place, or stand-alone in the cloud, enabling a managed migration
strategy.
Bringing it all together: Microsoft, VeriPark and Temenos
All of this is achieved today by bringing together technology from three leading
providers— Microsoft’s Dynamics 365 and Power Platform solutions, VeriPark’s
banking front-end functionality, and core banking systems of record from Temenos,
the world’s leading provider of banking software. DXC Connected Bank-as-a-Service
can also be layered onto existing infrastructure, including existing core banking,
using VeriLink.
4
So how do these various systems from Microsoft, VeriPark and Temenos
contribute to DXC Connected Bank-as-a-Service? How do they work together?
Let’s take a look.
First, DXC Connected Bank-as-a-Service leverages Microsoft Dynamics 365, an
award-winning, AI-enhanced, multi-channel customer relationship management
solution designed to help you better understand customer needs, engage more
effectively, and sell more accounts and products to more customers.
The AI capabilities within the DXC Connected Bank-as-a-Service solution are focused
on using sophisticated rules, analytics and algorithms to better predict customer
needs and in turn offer more relevant actions and offers, leading to improved wallet
share and loyalty. It leverages Azure Machine Learning capabilities to recommend
what to do next for a customer in context.
Delivering a ‘single customer view’ across multiple products and accounts, customer
enrolment, sales and prospect management, complaints and service request
handling, contact centre automation, master data management... Microsoft
Dynamics 365 does it all.
Second, DXC Connected Bank-as-a-Service makes use of VeriPark’s end-to-end
banking customer experience solutions, augmenting and integrating seamlessly
with Microsoft Dynamics 365, and providing banks with the ability to drive more
engagement with their customers by capturing their needs, gaining personalised
insights, and placing those customers at the core of the bank’s digital transformation
and innovation.
Third, at its core, DXC Connected Bank-as-a-Service can be powered by banking
software from Temenos, the world’s leading banking platform, trusted by over 3,000
banks in over 150 countries.
Combining the richest packaged functionality and the most advanced cloud native,
cloud agnostic, AI and API first technology, Temenos software has been the #1 best-
selling banking software in the IBS league table for the past 14 years, relied upon by
over one billion end-customers for their banking transactions. No fewer than 41 of the
world’s top 50 banks use Temenos software.
Temenos’ packaged functionality is used in over 150 countries and
covers all areas of banking, including local and regulatory compliance
requirements.
Temenos implemented a new banking service for Skipton International
during 2017 and replaced its core banking system for offshore savings
customers, allowing customers around the world to access their offshore
savings accounts 24 hours a day.
Temenos also has proven experience in delivering innovative technology
and successful SaaS (Software-as-a-Service) banking solutions to more
than 50 challenger banks. Temenos was recently selected by Alba, a new
Scottish SME challenger bank, to power its business lines for digital lending
and savings on its core banking Transact software and Microsoft Azure cloud.
5As a result, DXC Connected Bank-as-a-Service is a complete ‘commercial off-the-shelf’
banking solution. There really are no limits to your innovation: new current accounts,
savings accounts, credit cards, mortgages, loans… it’s a complete solution.
Integrating the Temenos banking platform with Microsoft Dynamics 365 and
VeriPark’s solutions, you’ll be able to ‘sell smarter’, embed insights more effectively,
foster relationships, boost productivity, accelerate sales performance, and innovate
faster using a modern and adaptable platform.
Putting the Customer at the Heart of Digital Transformation
Nor is the focus solely on personal, retail banking: DXC Connected Bank-as-a-Service
handles business accounts, too—business loans, business cards, business current
accounts, business deposits, and payment handling.
DXC’s Connected Bank-as-a-Service
6DXC CRM solution for
innovative banking service
At the cutting edge of banking
Crown Agent’s Bank selected technology—always
Microsoft Dynamics 365 for their
customer relationship solution and DXC Connected Bank-as-a-Service is at the cutting edge of
DXC as their delivery partner.
banking technology, always striving to help you to launch
Crown Agent’s Bank is a modern more relevant products into the marketplace sooner. It’s
financial institution that has
married a tremendous depth
innovated and maintained by DXC, Microsoft, VeriPark and
of experience with innovative Temenos respectively—meaning you don’t have to. Microsoft’s
technologies, offering products innovation and development track record speaks for itself,
and services that facilitate the
flow of money between developed
VeriPark is the leader in optimising Microsoft frameworks for
and developing markets. Financial Services, and Temenos, who invest c.20% of their
The Microsoft solution provides revenues in R&D, has invested over [US dollars] $2 billion in R&D
their financial advisors, dotted since 1990.
all over the world, with the tools
to help them better connect with Freed from this maintenance burden, banks can transform their performance,
their customers and to have a focusing on building better and more profitable relationships with their customers—
mobile and intuitive platform that and not on IT maintenance. As an example, Temenos’ top performing clients achieve
can be used to identify who might industry leading cost income ratios of 26.8% and returns on equity of 29.0%—three
need their expansion services. times better than the industry average. These clients also invest over 51% of their IT
budget on growth and innovation versus maintenance, twice the industry average,
demonstrating that their investment in Temenos software is adding tangible value to
their businesses.
Cost-income Returns on % of IT budget
ratios equity invested in growth
and innovation versus
maintenance
51.0%
29.0%
26.8%
Temenos’ Banking Temenos’ Banking Temenos’ Banking
top- industry top- industry top- industry
performing average performing average performing average
clients clients clients
7A suite of banking services too
What’s more, DXC Connected Bank-as-a-Service can also
make available DXC’s Business Process Services (BPS) banking
services capability.
BPS offers particular strength in the provision of a comprehensive suite of Banking
Financial Services. This suite of services includes traditional cheque processing,
lending administration, cards and payment processing and digital debt collection, as
well as wealth management, trade finance, investment banking, and securities and
fund services.
DXC BPS facts and figures
• Used by over 150 clients in over 100 countries
• Handles over 250 million customer interactions a year
• Handles over 15 billion credit and debit transactions a year
• 15,000 employees
Loan and mortgage servicing
DXC has also successfully delivered loan and mortgage servicing for more than 30
years. We provide the modernised, digital technology coupled with best practice,
processes and experts to manage end-to-end services on behalf of some of the
world’s leading financial institutions.
DXC was engaged to develop and build an agile and scalable unsecured lending
business operation for a large UK bank, managing growth aspirations through a
predictable and cost-effective financial model. This included handling multi-brand
business and interaction with other bank-controlled channels, including traditional
branches and fast-growing Internet-based operations. As the strategic partner for
the Bank, DXC is responsible for the management and administration of the entire
£Bn Loan Book.
DXC’s Business Process Services
capability offers traditional
cheque processing, lending
administration, cards and
payment processing and digital
debt collection, as well as wealth
management, trade finance,
investment banking, and
securities and fund services
8Leveraging DXC Connected
Bank-as-a-Service within your IT landscape
When it comes to deployment, the message is simple: flexibility
and choice underpin DXC Connected Bank-as-a-Service.
Mix-and-match, slice and dice: the broader banking business
is in the driving seat, deploying as much or as little of DXC
Connected Bank-as-a-Service as they want, going as fast or
as slow as they want. It can be run alongside existing banking
systems, or layered on top of existing systems, giving banks the
flexibility to phase in the introduction of new functionality at a
pace that suits their needs.
DXC Connected Bank-as-a-Service can be deployed product by product, device
by device, channel by channel, or department by department. What’s more,
we utilise tools that allow us to provide integrated and reliable regulatory reporting,
irrespective of whether the DXC solution runs alongside, or is layered on top of,
existing systems.
Mix and match by channel, by department or product
And DXC Connected Bank-as-a-Service’s ‘low code, no-code’ architecture
enables rapid deployment—with it taking as little as three months for a new
product or service offering to be up and running, with all delivery and channel
options supported, and without incurring technical debt. Larger-scale deployments
take longer—typically 12 months—but are still far quicker than in-house rollouts of
internally-developed products.
9Better still, the modular make-up of DXC Connected Bank-as-a-Service allows for
a phased deployment, allowing you to accelerate your digital transformation at
a pace that is right for you, managing risk and disruption along the way. In other
words—if they wish—financial institutions can start small and build out, replacing as
much or as little of their existing systems as they need, in a controlled and phased
migration.
Finally, DXC Connected Bank-as-a-Service can be managed in: a private cloud; a
secure public cloud such as Microsoft Azure; by your own IT organisation;
by DXC; and further supported and supplemented with the immensely wide-ranging
capabilities offered by DXC’s Business Process Services.
Best of all, perhaps, is that from a capital expenditure point of view, DXC Connected
Bank-as-a-Service has an affordable cost of entry: it is paid for as you consume it,
as a service, out of operating expense. However constrained your IT budget, DXC
Connected Bank-as-a-Service is an affordable, capital-free option.
Innovate with DXC Connected Bank-as-a-Service
• Understand your customers better: view a customer’s entire
transaction history, together with the products and services that they
use, in one single location.
• Service your customers better: get easy access to all the information
that you or they need to make informed financial decisions.
• Service your customers anywhere: provide customers with the same
service level, no matter which channel they use to engage with you.
• Accelerate the time-to-value: enable new product features and launch
new customer focused products and services more quickly.
• Understand your ‘next best action’: use AI capabilities to improve
customer engagement and suggest recommendations.
• Reduce your technical debt: start your journey to a modern cloud
based platform in a controlled, phased manner.
10Want to find out more?
Please call the DXC Microsoft Business Applications Practice on
+44 (0)8455 441 441 or email busappsuki@dxc.com
Learn more at www.dxc.technology
Get the insights that matter.
www.dxc.technology/optin
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and hybrid clouds. With decades of driving innovation, the world’s largest companies trust DXC to deploy
Kings Cross, London our enterprise technology stack to deliver new levels of performance, competitiveness and customer
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