IBS Journal May 2015
Never ending journey
US-based Keybank goes on the record about its project to implement Oracle FSS’s new offering, Oracle Banking Platform (OBP). What capabilities does the OBP platform support and how does it fit into the bank’s major digital modernisation initiative?
US-based Keybank has been implement- ing Oracle’s new solution, Oracle Banking Platform (OBP), since last autumn. The US bank is a rare taker of the plat-
form, which has so far enjoyed limited success (only in Australia albeit with the local heavyweights, namely Suncorp and National Australia Bank). The scope of the Keybank project is different to that of the Australian banks, which are applying OBP for major core banking software renova- tion. At Keybank, OBP acts as ‘an orches- tration layer’, says Ryan Lysaght Gorney, SVP and head of digital channel technolo- gy at the bank. It facilitates the ‘continuous
Keybank HQ, Cleveland ©Erik Drost, Commons Wikimedia
digital journey’ the bank has embarked on. Keybank’s focus is in on the middle
and front office technology. It is happy with its existing core banking system, pro- vided by a domestic vendor, and there are no plans to change it, Gorney says. ‘Our core banking system is rock solid.’ The bank is the 15th largest in the
US. It has $92 billion in assets, $67 billion of deposits, a network of 1300 ATMs and 1000 full service branches across twelve US states, and over two million custom- ers. It employs 14,000 people. Gorney describes Keybank as ‘a relationship-based bank’, with digital services and physical
branches being ‘pieces of one puzzle that work together to bring the full customer experience’.
Keybank has ‘traditionally been an ear-
ly adopter of digital capabilities’, he contin- ues. ‘In the early 1990s we were one of the first regional banks to introduce internet banking. The channels have served us well, but looking towards the future and what the customers want, we realise the time has come to modernise again,’ he says. ‘Our main focus here is on providing ease, value and expertise to our customers as well as financial guidance, which is critical.’ To achieve this, the bank devised
a four-layer architecture (see opposite page), and identified the areas that need- ed new software. The core banking solu- tion is ‘left to do what it does best’, i.e. transaction processing. It is supplement- ed by an enterprise service layer on top of it, which ‘delivers all the piping and all the business logic in one place, and can be easily extended in the future’. On top of that, there is another, thinner layer for channel services, which handles the logic of device security, roaming and so on. And finally, the top layer, which is the thinnest, provides mobile, online and branch bank- ing. Customer experience is changing so rapidly, notes Gorney, that the software will need to be refreshed again in the not so distant future. And to be able to do it efficiently, Keybank needs to keep the top layer of its IT architecture ‘as thin as pos- sible’ by moving all the business logic to other layers. A third party vendor develops mobile
banking apps for Keybank, whilst the online banking solution is an in-house development. ‘We looked at various ven- dors but decided we needed to build it ourselves. This is our bread and butter, this is what differentiates us,’ Gorney states. A service of opening an account online,
42 © IBS Intelligence 2015
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case study: keybank
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