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Case Study

Aligning a new IT platform with new business priorities

A consortium of mortgage banks saw significant benefits in joining forces to create an integrated holding company. However, none of their legacy IT platforms could cover new company's needs. Bain evaluated the architecture and migration options and identified a strategy to generate more than 40 million Euros in benefits.

  • min read

At a Glance

  • €40M in benefits to be generated

The Full Story

The Situation

A consortium of mortgage banks had decided to join forces within an integrated holding company, Mortgage Holding*. The consortium expected significant synergies as a joint nationwide player. However, the individual mortgage banks within Mortgage Holding all had different IT platforms (e.g. custom vs. standard software) without any standardization for non-differentiating IT functions. Further, none of the legacy IT-platforms would cover Mortgage Holding's requirements. Bain was asked to advise on the following issues:

  • What IT strategy best fits Mortgage Holding's business strategy (both now and in the future)?
  • How do we align different stakeholders to one common IT vision?
  • What should be the design of the functional IT architecture? How should we select the systems selection?
  • Can standard software be leveraged?
  • How can we ensure that our IT strategy is properly implemented?

Our Approach

Bain created a three-phase approach to develop and support the implementation of IT strategy.

Our Recommendations

Through full alignment of business objectives with new IT architecture and IT governance structure, Mortgage Holding can better integrate bank processes, thus achieving efficiency and synergy.

Build standard software-based IT architecture:
  • Consolidate core functional software modules across business lines
  • Follow "one system" approach for system selection
  • Migrate stepwise into target architecture based on sound integration architecture
Develop lean IT governance structure:
  • Centralize IT management on holding level with holding CIO
  • Entrust board IT council with governing IT investment decisions
  • Hold CIO responsible for IT strategy design (incl. veto right) and execution
  • Ensure direct link between business/IT along business lines
  • Maintain transparent, open service provider relationship with internal holding mortgage loan processor or external service provider (ESP)

The Results

Design, agreement and successful implementation of business aligned IT strategy will generate approximately 40 million Euros in benefits.

 

* We take our clients' confidentiality seriously. While we've changed their names, the results are real. 

 

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