Professional Documents
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Final
July 2012
Core Banking Department
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Business Case
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Title
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Business Case
Table of Contents
1.
2.
3.
4.
5.
6.
7.
8.
Purpose of Document...................................................................................... 4
Background..................................................................................................... 4
Work Performed.............................................................................................. 4
Reasons for the Project................................................................................... 4
Objectives....................................................................................................... 6
Scope.............................................................................................................. 7
Stakeholders................................................................................................... 7
Benefits........................................................................................................... 7
8.1. Benefits.................................................................................................... 7
8.2. Adverse Effects........................................................................................ 8
9. Options........................................................................................................... 8
10.
Costs and timescales of recommended option............................................8
10.1. Recommended Option.............................................................................. 8
10.2. Project Implementation Costs Recommended Option............................8
10.3. Summary of ongoing costs against benefits Recommended Option......9
10.4. Core staff resources required on an ongoing basis................................11
10.5. Timescales............................................................................................. 11
11.
Risks.......................................................................................................... 12
11.1. Risks of not going ahead with the project..............................................12
11.2. Risks that will need to be addressed if the recommended option goes
ahead 12
12.
Issues........................................................................................................ 12
13.
Dependencies............................................................................................ 12
13.1. Initiatives which this project depend on are:..........................................12
13.2. Other initiatives which depend on this project are:................................12
13.3. Key resource dependencies:..................................................................12
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Business Case
Purpose of Document
The purpose of this document is to set out the justification for the undertaking of
a Core Banking replacement project based on the estimated cost of development
and the anticipated benefits to be gained.
The on-going viability of the project will be monitored by the Project Steering
Committee against the benefits identified in this business case.
Background
Centenary Bank is looking to build upon its success to extend its dominance in
Microfinance in the Ugandan market. Specifically, it wants to grow the
microfinance and retail banking business across the network, attract new
customers with customized products, and strengthen the micro lending offering.
Its other goals included simplifying business functions and operations for
operational efficiency, customer centricity and growth / innovation by creating a
business model underpinned by access, convenience and flexibility.
Equinox the core banking platform currently in use was implemented in 2002.
This system is rigid and unresponsive, impede the banks ability to pursue
growth opportunities, enhance the customer experience, and mitigate operating
risks.
The Bank will have to modernize its existing core banking platform to fulfil these
ambitious objectives. It should embark upon replacing its existing Core Banking
application with an integrated and robust IT platform.
Work Performed
The Bank has just concluded the Business Process Mapping exercise which
resulted in formulation of new processes. A number of these new recommended
processes cannot be configured in our current Core Banking system Equinox
and therefore calls for its replacement.
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Business Case
that has been localized for the geographies that the organization operates in
will address regulatory changes in a timely manner.
Objectives
1. Operational Efficiency:
2. Customer Centricity:
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Scope
Stakeholders
The key stakeholders of the project include:
Operations
Credit
Finance
Business Development and Marketing
Business Technology
The Executive
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Business Case
Benefits
Benefits
The Core Banking replacement will provide a seamless platform that helps
operational efficiency, supports business growth and enables the Bank to adapt
to the dynamic environment.
Customer benefits
The enhanced solution now allows over 1.4 million Centenary Bank
customers to transact seamlessly across the country
Transactions, such as cash deposit will be seamlessly carried out across all
Centenary Bank branches online and in real-time
A unified view of customers will enable the Bank to offer personalized
products and services
Data clean-up during migration will improve data quality and helped bank
users service customers faster
Biometric authentication of customers for transactions and users for login
will reduce the possibility of look-alikes conducting transactional frauds
Also, auto delivery of password will reduced the risk of misuse by
administrators
Operational benefits
There will be a reduction in the time spent by tellers for reconciliation and
an increase in branch uptime resulting from the systems 24X7 operation
functionality
Bank users will be able to send online referrals to supervisors/managers
and have them approved online, thereby reducing the turnaround time for
processing customer transactions and improving efficiency
Seamless integration across multiple channels and third party systems will
facilitate productivity improvements across the Bank.
Business Benefits
Customers will transact freely across branches, they add to the Banks
revenues by way of transaction fees
The Bank will roll out innovative offerings faster in response to market
demands, explore new lines of business and deliver a superior banking
experience to its customers
Adverse Effects
The following adverse effects are expected should the project not be approved:
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Options
Do Nothing
1+2
2013/4
2014/5
2015/6
2016/7
2017/18
Total
000
000
000
000
000
000
10
11
12
2013/4
2014/5
2015/6
2016/7
2017/8
Total
000
000
000
000
000
000
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2014/5
000
2015/6
000
2016/7
000
2017/8
000
2018/9
000
2019/20
000
2020/1
000
2021/2
000
2022/3
000
Note - Contingency: It used to be the case that there was a separate cost line for
Contingency in the Cost v Benefit Analysis. This practice has been discontinued.
However Business Analysts may add an element of contingency on top of
individual cost elements where there is a significant level of doubt about the
future costs (the level of contingency would be influenced by the extent of the
doubt). The most likely example is an estimate of software and consultancy
costs for a new system prior to a procurement and tendering exercise.
If contingency has been applied it may be helpful to list below the Costs and
Benefit affected (in any of the tables above):
e.g. A level of contingency has been included in the following costs above:
Cost
Continge
ncy
Capital Hardware
support
&
5%
Capital
support
&
15%
Software
Supplying department
Nature of work
These should only be listed if it has been agreed that the work can be covered
by existing staff.
The costing of these staff appears in a memorandum table (Table 13) in the
Financial Template.
Timescales
The project can be broken into n stages.
Stage 1
Stage 2
Dates
Risks
Risks are potential threats to the University that may occur but have not yet
happened. Risk management will monitor the identified risks and take any
remedial action should the risk happen. The risks associated with the project are
set out in detail in the risk log in Appendix 6, identified as the risks to the
University if the project does not go ahead, and the risks if it goes ahead with the
recommended option. In summary the main risks are as follows.
Include any Change Management risks e.g. impact for staff and cultural
change.
Issues
There is a significant number of important issues which need to be resolved and
decisions which need to be made to achieve the successful delivery of the
benefits of the project.
Identify any key issues which need to be resolved to achieve the benefits
of the project
Dependencies
Initiatives which this project depend on are:
Other initiatives which depend on this project are:
Key resource dependencies: