Tuesday, March 16, 2010

Improving Your T24 Return on Investment

When the Temenos T24 first hit markets several years ago to buy this upgrade, modular banking system seemed like an obvious decision for wholesale, retail and investment banks and other financial institutions worldwide. As the most technically advanced banking system in the world, it is no wonder that over 500 banks and financial institutions in more than 100 countries have chosen to implement or upgrade their existing technology to T24.

T24 is a 24-hour real-time banking, giving you multiple application server support for many users. The system binds multiple channels, providing CRM functionality and genuine non-stop treatment in a single system, and most importantly, eliminates the need to run End-of-day treatment. T24 supports the core functions, Retail Banking, Private Banking, Treasury, Corporate / Wholesale and Multi-Channel business functions.

But despite the wonderful customizability, integration and feature-set of even the most sophisticated banking systems, most implementations fail because of one individual.

70% of all Core Banking Systems Implementations Fail

With Core Banking System deployments cost between hundreds of millions of U.S. dollars (USD) before they are finished, there are no small mistakes, and even a 2008 Academy Banker survey showed that the banks have been through a conversion systems within the past 3 years, just over 70% of both line and IT managers in the survey that they were "very" or "somewhat" dissatisfied with the new system!

Why? Was it missing features? No. Was it the fault or other technical problems? No Was the timing of implementation? No (although the average implementation runs 30% of time). Was it cost? Not even that.

The No. 1 Reason Core Banking Systems Implementations Fail

With a factor of almost three to one, bank executives reported the main reason for their dissatisfaction with their new system was "employees are not using the system correctly."

After several years of planning, development, testing and converting what had been the only factor that undermined its satisfaction with the system? Lack of adequate training!

Instead of taking advantage of their new banking system and get a quick return on investment, neglected these financial institutions to provide adequate training for their employees and wasted their significant investments in technology.

Barriers to effective training

Why do most system conversion projects do not offer quality education? There are several reasons:

1) Cost of a training region.

Maintaining a separate training region within a larger system can be extremely expensive and many institutions balk at the added expense.

2) Implementation Schedule.

Although a successful and timely systems conversion projects, the schedule is always a problem. Often systems are still adapted well into the user acceptance test - leave the training to be developed in a very short window of time.

3) lack of expertise.

Banks are banks. Systems, suppliers of system vendors. None of them is to train experts, and unfortunately most systems, training, shows that.

4) System Customization.

Banking systems are tailored to each institution, and although most vendors provide generic training programs and so students do not look at the screens and procedures that accurately reflect the system they have.

What is the answer?

Systems conversions can be a long and bumpy road. Whether you are introducing a new system because of a merger or acquisition, or if you simply upgrade your technology, systems conversion efforts consume your resources and your patience. But getting a new system up and running is only half the battle. The real challenge is to give your employees for training and practice they need to make the new system a success.

The answer is System Simulation Training (SST) from Banker's Academy.

SST is an relearning the simulator model and method that can quickly get your employees up to speed on all systems, even before the system is fully ready, without needing a costly training region!

Benefits of the SST approach include:

• Staff fully prepared even before the deployment.

• Minimal training time.

• No training region necessary.

• Ongoing refresher and new-hire training.

SST is successfully preparing students to use a new system with its unique Observe-Practice-Demonstrate model:

• Observe - Participants are introduced to the workflow, steps, screens and documents associated with the procedure.

• Practice - Participants perform the steps of the procedure in a realistic simulated environment with a step-by-step guide.

• Demonstrate - Participants demonstrate a mastery of procedure in handling common business scenarios while still getting immediate feedback on their keystrokes and mouse clicks.

Training at their own pace with the students become familiar with the new application in a non-threatening, simulated environment that looks and feels like the real system. And SST is fully adapted to your system - with your monitor, your scenarios and your procedures.

Increase Employee Confidence and Motivation

Using a new banking system can be frightening and intimidating for the staff of a financial institution, since they are directly responsible for using it on a daily basis. To use the system and correct processing of transactions, employees need to first have an introduction to what it is and a clear understanding of how to use it.

By receiving proper training, employees will practice and learn all aspects of the system in a self-paced, safe and non-threatening learning environment that looks and feels like the real system. Through the use of motivating, challenging and interactive content, activities, exercises and hands-on practice of the system's functionality, there will be more confident about using the new system. These interactive exercises will allow employees to gain a new understanding of their job responsibilities and will give them the knowledge and skills they need to excel in performing their tasks every day.

Offer training that is tailored to each job position in the bank will also help employees to feel confident about using the new system on a daily basis. Targeted, comprehensive and tailored training will help employees in all areas of the bank to safely and effectively use any system out there.

Maintain Customer Experience

When converting to a new system, it is important to keep all the customer banking experience consistently. Financial institutions should implement a smooth transfer to a new system, while maintaining an optimal customer experience. Customers should not be able to sense that a transition in their bank, even experienced, or felt any bumps in the road during the transfer.

System Simulation Training produces skilled, knowledgeable staff who provide reassurance to customers - customers who will return because of their positive experiences in the bank. If customers are still satisfied with their banking experience, they will probably tell their friends and family, resulting in even more business for the bank.

Reduce risk

Training staff on the new banking system offers many benefits, including reducing the risk of the bank. Knowledgeable and confident employees will reduce errors and costly mistakes. And unlike the classroom, each session is identical, so you can be sure of consistency in training. A team of employees that everyone receives consistent, quality education will help make the transition to a new system smooth and risk-free

Certification

System Simulation training also allows you to objectively assess each is prepared to use new system in front of customers. Using proprietary tracking technology, education count every mouse click and every keystroke in each simulated operation and gives a score on how effectively and accurately the student was able to complete the exercise. Based on this, and what score you decide to form a sufficient mastery, students are presented with a Banker's Academy certificate of achievement and your administrators can generate reports that show who is ready for conversion!

The Cost?

Training of employees on a new banking system, not to be a big expense. By offering e-learning training to its employees, a financial institution will eliminate the need for costly and time consuming in-house training. eLearning eliminates or reduces the cost of travel, instructor time, materials and lost workdays. ELearning and gives you a program that can be used for refresher training and new-hire training, and no extra cost!

Final Word

In order to offer its customers the best service available, banks and financial institutions must be up to date on the latest technology available - no matter what the cost. Hundreds of vendors are available to financial institutions, including Temenos, Oracle Financial Services Software, Fidelity National Information Services, Tata Consultancy Services Financial Solutions (TCS FS), Misys, SunGard Ambit System Access, Fiserv, 3i Infotech, and Silverlake Axis. These suppliers provide premier banking system software, such as, T24, Flexcube, Micro Banks Finware, Finacle, FIS Alltel Systematics, Sanchez Profile, Advanced commercial banking system (ACBS), Kordoba, ALLprofits, Miser, BancPac, Banc - TCS Banc, Equation; Bank Master LAN, Bank Master RS, Midas Plus, Bank Mergers, ICBs (International), Fisher CBS (U.S.); BASYS / Meta Bank, Catapult, Kessler, Silver lake Integrated Islamic Banking System (SIIBS), and many more.

But no matter how sophisticated, high tech or expensive these systems is that they will not without the proper training of employees. To a financial institution to get its money worth and reap the many long-term benefits that these systems can deliver, Systems Simulation Training is the obvious choice.

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