Core Banking Transformation Qorus-Infosys Finacle Banking Innovation Awards 2025

Brief summary of the initiative: Co-operative Bank has been on a transformative journey since 2017, pioneering the digital evolution of its business, operations, and organizational models. By strategically embracing the potential of digital technologies, the bank sought to capitalize on new opportunities and stay ahead of their accelerating impact. A key component of this transformation was the urgent need to replace the legacy core banking system with a cutting-edge Core Banking Solution, integral to realizing the bank’s digital future. In 2019, the Board of Management in response to market dynamics, strategic priorities and our institutionalized transformation approved the implementation of the new core banking system which was procured through a competitive bidding process. What sets this innovation apart is its holistic approach: the new core banking system not only supports digital banking capabilities but also enhances the bank's ability to offer differentiated customer experiences through multi-channel platforms. By combining its deep-rooted co-operative ethos with cutting-edge technology, the bank is uniquely positioned to dominate both the Kenyan and regional markets. This allows Co-operative Bank to provide a broad spectrum of financial solutions, focusing not just on growth, but on delivering value-driven experiences tailored to the needs of its customers—truly embodying innovation in both technology and service delivery. The new core banking system has created an impact in the following business areas: 1). Customer Information Management • Improved NPS (Net Promoter Score) • 360 view of the customer • Increased customer retention 2). Account Management • Increased number of accounts opened 3). Operations • Increased No. of digitized process • Self-customer onboarding • Reduction in Processing time • Reduction in Processing costs • Reduced Backoffice activities • Additional capacity for revenue generation activities by reduction in repetitive tasks that were not revenue generating. 4). Loan Management • Loan book growth • Early Warning • Enhanced NPL management strategies as a result of customer 360 view • Enhanced collateral management 5). Product Management • Rapid roll out of new products and product changes • Improved Product holding -Next best offer and targeted campaigns • Better customer segmentation -based offering • Cross selling 6). Transactions And Payment • Higher transaction throughput (TPS - 1000) • Increased transaction revenue 7). Technology • Improved system uptime and Service availability. • Reduced incidents of down times • Increased number of available APIs- the system has over 1000 APIs which the Bank has used to increase the number of integrations. 8). Data and analytics • Increased Self service reports • Deeper customer insights for enhanced decision making. • Better Churn reduction analytics • Improved Credit Scoring 9). Offer Banking as service • Ability to Integrate with ecosystem players and Fintechs • Increased number of integrations with 3rd parties.

Project background and rationale The Core banking implementation project was aimed at addressing the challenges faced with the legacy system: 1) It was based on a client-server model, wherein, users accessed the main system via a ‘thick’ client that had to be installed on the desktop/laptop introducing additional administrative overheads 2) Branch users accessed via an intermediary component, running in the branch servers implemented as a “store & forward” mechanism which was a complicated architecture 3) High availability was not implemented. The system could only “manually” fail over to datacenters 4) The system was not available to the online channels on a 24x7 basis. The system was offline during the end of day/month process impacting system availability and accessibility of some services during these periods, especially to customers outside the country. 5) There were limited APIs on the previous system making the integration to third parties e.g., Fintechs, Telcos and other financial institutions slow and resource intensive The project was intended to transform the experience of our customers and reinvigorate our internal processes. To address the challenges and gaps identified the desired core banking system drivers would include: 1) Adaptation to changing business environment and customer behavior - Responding to evolving business environment and customer preferences to remain agile and responsive. 2) Enhanced Integration and Streamlined Administration - Achieving seamless integration and efficient administration of systems, products, processes, and customer information. Leveraging branches and channels for optimal operational efficiency. 3) Economies of Scale through Data Integration - Integrating customer onboarding, cross-selling, CRM, regulatory reporting, and internal MIS for operational efficiency and scalability. 4) Technological Refresh and Modernization - Modernizing technology by replacing end-of-life software, infrastructure, and technologies to ensure a robust architecture and foundation 5) Data Analytics and Business Intelligence Implementation - Enabling data analytics and business intelligence to identify opportunities, predict outcomes, and optimize strategies. Gaining a competitive edge. 6) Enabling Innovation as a Catalyst - Leveraging innovation to differentiate services and provide unique value to customers. 7) Elevating Information Security Provisions - Strengthening information security to mitigate risks of data breaches and loss, safeguarding interests, reliability and confidentiality. 8) Leveraging Technology for Digital Banking Experience - Providing seamless end to end digital banking, offering a delightful customer journey, automation, and innovative products