Success Story: How Financial Institutions Win with Modern Systems

Axway Managed File Transfer solutions help relieve the growing pains that come with success.

  • Headquarters

    United States
  • Industry

  • Challenge

    The adoption of numerous legacy systems through years of organizational growth and related M&A activity created high infrastructure TCO, gaps in team expertise, long learning curves for new employees and complex partner on-boarding procedures.

  • Solution

  • Results

    • 20% decrease in software and hardware maintenance costs
    • 35% decrease in partner on-boarding processes
    • 10% increase in troubleshooting resolution
    • Rapid time-to-value with partner self-service tools
    • Reduction in data security and regulatory compliance risks

Background

Organizational growth is exciting but it can also lead to serious headaches with the complexity and cost of redundant, legacy systems. And within financial services, data security risks posed by system inefficiencies and regulatory compliance failures can be particularly calamitous.

To tackle these and other business challenges they were facing, a leading, regional financial institution and member of the S&P 500 Index herein referred to as The Company partnered with Axway for the consolidation of the Managed File Transfer (MFT) gateway systems that support key treasury services with a world-class solution and rationalization services.

Axway SecureTransport and the MFT rationalization project delivered significant, ongoing benefit to The Company, their partners, and even their customers. Costs were lowered, processes efficiency was improved and compliance risk was reduced. Here’s how they did it. 

MFT Transformation Opportunity

Operating over 1,000 branch offices and 2,500 ATMs across a multi-state network, The Company provides customers with retail and commercial banking, trusts, securities brokerage and mortgage and insurance products and services. Throughout its 40+ year history, they acquired many other financial service providers to become what is now the largest deposit holder in its region.

Through those years of growth and M&A, The Company accumulated a number of legacy file transfer gateways to support ACH, Lockbox, Reconciliation and related payment process exchanges with nearly 1,200 financial institution partners representing over 175,000 file transfers per month. The Company’s legacy gateways included both end-of-life commercial and custom systems which created a host of challenges:

  • High infrastructure total cost of ownership (TCO)
  • Gaps in team member expertise and long learning curves for new employees
  • Complex and prolonged partner on-boarding processes
  • Difficult reporting on file-transfer flow across diverse, disparate systems
  • Data insecurity, lengthy, error-prone processes for FFIEC reporting, and other regulatory compliance risks

MFT gateway rationalization

Upon partnering with Axway to rationalize their MFT gateway systems, the team kicked off the project by identifying three guiding principles:

  1. Minimize disruption of existing business processes throughout the migration
  2. Automate the migration process to ensure system decommissioning would remain aligned with approaching end-of-support milestones
  3. Expedite time-to-value of the new MFT solution

Following a detailed vendor landscape analysis and proof of concept process, Axway delivered two key assets for The Company’s rationalization project:

  • Axway SecureTransport — A world-class MFT software solution as evaluated by leading industry analysts, including Info-Tech (see their 2015 Info-Tech Vendor Landscape Report).
  • Axway Gateway Rationalization Services
      • Proven methodology designed and tested specifically for gateway migration projects
      • Rich set of migration tools to support the transformation process, including automation, execution and reporting on migration activities
      • Flexible delivery approach to optimize project management roles and execute operations at the right level of the organization

Directed by these guiding principles, the MFT gateway rationalization project was structured in three distinct phases:

  1. Define the replacement strategy
    • Design the platform architecture, use cases and transmission services using Axway SecureTransport.
    • Define the migration strategy including the technical approach, process, roles and responsibilities of participants in line with business requirements and technical constraints.
  2. Implement the Axway solution
    • Install the environments while relying on Axway best practices with the goal of facilitating both upcoming migration activities and platform operations.  
    • Identify the level of automation needed to provide visibility into the expected timeline, prioritize partners and execute the test plans.
  3. Migrate to the new solution
      • Implement Axway’s reusable services component such as interfaces to support customer and partner migration process, workflow, notification templates and reporting dashboards.  
      • Execute a pilot migration for a subset of partners and ensure it is in line with service level agreements (SLAs).
      • Iterate the migration process for all remaining partners
      • Monitor, report and review the overall progress of the migration project 

Realizing Value

Success has been sweet for The Company. Axway SecureTransport and the MFT rationalization project has provided tremendous ongoing benefit, including:

  • 20% decrease in software and hardware maintenance costs
  • 35% decrease in the partner on-boarding process
  • 10% increase in troubleshooting resolution
  • Rapid time-to-value with new partner self-service tools
  • Reduction in data security and regulatory compliance risks

Future Initiatives

Going forward, one of The Company’s key initiatives is to gain robust visibility into and management of person-centric ad hoc file transfers such as those related to distribution of mortgage loan applications to customers. The goal is to greatly reduce security risks by eliminating use of consumer-grade, cloud-based services such as DropBox.

 

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