A playbook for banks on M&A integration

In a low-interest rate regime, achieving scale is the only way for banks to stay profitable. The top 25 banks are growing at a rate faster than rest of the pack. The search for profitability from scale is predicated upon their ability to ensure that operational costs do not grow linearly with business. A significant part of this growth will come inorganically. Apart from M&As, brownfield expansion comes with banks selling off their books of business for reasons ranging from realigned strategic priorities to the more mundane need of raising cash. Any IT costs in absorbing the new book of work will negate the advantages of size.

Iris created a business acquisition playbook for our banking clients outlining steps to insource with a migration and integration strategy. We defined insourcing steps for business and technology teams and created a migration strategy with quantifiable recommendations and a reusable checklist for insourcing activities. Our solutions enabled clients to deal with post-merger integrations and create a single source of truth for transactional data and positions. We consolidated multiple acquisition playbooks and created a single standardized framework for their lending business. The solution also included data integration management and ensured connectivity for the lending business. The solutions were specifically tailored for applications in the loan origination and servicing space.

Our solution rendered several significant benefits and helped clients:

• Achieve 50% savings in cycle time and cost for post-merger integration of business processes, application, and data
• Capability and readiness assessment and assistance in choosing from insourcing options
• Achieve full migration of data and systems
• Achieve partial migration of systems and data migration and integration