Bank of Ireland, leading the way to the future of banking

With Colin Payne,
Bank of Ireland Account Engagement Lead for Capgemini Consulting

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Bank of Ireland, leading the way to the future of banking

During the financial crisis, Bank of Ireland did a lot of restructuring, refocused its strategy, repositioned its business and raised significant amounts of capital so that all of its divisions would be profitable again. Bank of Ireland is now the largest lender to the Irish economy. At the same time, the Irish bank also clearly recognized the need to invest in its digital agenda: two thirds of its personal banking customers in Ireland now use mobile as their primary channel of engagement.

8 million
transactions every month via the Bank of Ireland mobile app

Changing the core banking system for a truly customer-centric model

In its plan to digitalize its platforms, Bank of Ireland came up against a major challenge: providing its customers with a platform encompassing all its businesses. For a truly customer-centric, customer-directed model, customers expect a single view of the bank, and employees need to have a single view of their customer. But none of this is possible without changing the core banking system. “Bank of Ireland was strongly encouraged by the country’s financial regulators to carry out this digital transformation project,” says Colin Payne, Bank of Ireland Account Engagement Lead for Capgemini. “The authorities not only required all IT systems to be efficient, but also perfectly reliable and fully secure. Meanwhile, the bank was also seeking to integrate new, customer-centric features. All of it had to be cost effective in order to remain competitive.”

By partnering with Capgemini to implement Temenos as its core banking platform, Bank of Ireland was able to focus on those areas where it has innate strengths: the ability to engage with its customers; the ability to take measured risks and price for that risk; and the ability to ensure that its employees remain professional, motivated and engaged.

At the time, all the systems in place were legacy systems, meaning they relied on equipment and/or software that had already been replaced by newer versions. There were 650 in total, each operating independently of the rest. We replaced them all with a single digital platform.Colin Payne

A business-driven digital transformation

Bank of Ireland plays an important role in the Irish economy, with around 40% of Irish economic transactions going through its systems. If something were to go wrong with its delivery it would have an impact throughout the Irish economy. That is why Bank of Ireland takes this digitalization project very seriously.

As a result, Bank of Ireland determined early on that its digital transformation would not be solely technology-driven, but rather business-driven in partnership with technology. This investment has whole-hearted, informed business support and direction by the board and senior management of the bank. To achieve something of this scale, the bank needed very strong discipline and a willingness to have rigorous yet agile decision-making processes.

Bank of Ireland is located in an area of Dublin known as the ‘Silicon Dock’—the tech hub of Europe. It was exciting to work near the European headquarters of Google, Apple, Facebook and Amazon. We shared the same forward-thinking dynamic.Colin Payne

Bank of Ireland felt that Capgemini were the partners who could help it build its system. In the judgment of Bank of Ireland, Capgemini had the experience, the skill sets, and the cultural vision that could align with its own.

From 2016 to 2020
Bank of Ireland will spend between 175 to 225 million euros per year on the transformation

A digital transformation also focused on employees

Bank of Ireland undertook this transformation not just for its customers but for its staff as well. Today, banking isn’t dominated by the counter or by paper transactions. Bank of Ireland is going through a massive professionalization of how its 11,000 staff perceive their roles in the bank of the future—including how they acquire new skills. In 2016 alone, 3,000 employees took on a new qualification, and the transformation is helping the bank to attract the people and the capabilities that it needs to secure its future.

This project contributed to building the future of the banking sector. Digitalization is revolutionizing the way banks work, but also how they interact with their customers.Colin Payne
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