Part 3 – Project planning for Financial Institutions merging together

By - May 11, 2016

In the previous blog post around project planning for financial institutions, we detailed the history of two financial institutions merging to better serve their customer base and meet regulatory requirements. Bank A’s management team will stay in place and Bank B will be converting to Bank A’s core application.

For a period of time between the merger date and the core conversion the banks are operating on two systems, to best serve the customer base, this requires a number of manual efforts nightly to reconcile the applications.  To remedy the issue there is a desire to convert to a single core as quickly as possible.

Enacting the project plan the teams were able to complete a significant amount of system clean-up in advance of the core conversion. Some of the specific activities include:

  • Reviewing customer accounts
  • Product rationalization
  • Review and consolidation of codes
  • Close or inactivate unneeded vendors/customers/GL Accounts, etc.

Additionally, through the review of the current state and development of future state process flows the integration team was able to determine additional features, products and services required from the core vendor. By preparing this information in advance of the core vendor’s onsite, we were able to meet their timelines and reduced the anticipated conversion timeline.

Throughout the core conversion it is often advised to utilize a project manager to manage the third party vendors, the core provider, ancillary applications and integrations. The core project manager is focused on the provider’s needs, not the banks needs.

Following the conversion, the process and training documentation was updated to best meet the bank’s need. Training was also completed.

The bank was able to successfully meet their goals, although a merger and core conversion is never an easy process they learned a lot about the Bank, staff and customers. The focus on, “the business of banking,” and serving customers while creating a solid foundation for the future of the institution was achieved.

To learn more about how RSM can assist you with your other business needs, contact RSM’s management consulting professionals at 800.274.3978 or email us.

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