What is a Bank or Banking Business Capability Model?
Finantrix Banking Business Capability Model is a structured set of capabilities representing “What a bank does” and decomposed to foundational building blocks. The banking business capabilities are an essential component of business architecture and useful in many ways.
What do we get when we buy the Business Capability Map for a Bank?
Finantrix banking business capability model takes the highest-level value chain activities of a banking business and identifies level 1 capabilities. Then each capability pillar is drilled down into the logical next layer resulting in a consistent business capability model for a bank that has structural integrity and internal coherence.
What is the format of the Banking business capabilities Model?
You will get the nested list of the Banking capabilities model in three formats – Spreadsheet, Word Processing and Presentation Slides.
If you wish to use Capstera Business Architecture Software, Finantrix.com can upload the capabilities beforehand to jumpstart your capability modeling process.
How does a Banking Capability Model help?
A Bank business capability model from Finantrix can accelerate the business architecture efforts. Today, banks are under severe stress from regulatory burdens, the onslaught of competition, unbundling of the services by upstart startups, cost pressures and internal constraints such as legacy technology and archaic processes. The capabilities represent the stable elements of the bank and are intuitive to understand and can bridge the strategy and execution gap and align business and technology teams. For a more in-depth discussion of the value of business capabilities, please check Capstera’s insight on the top benefits of capability modeling.
How should we use the Business Capabilities Map for a Bank?
- Business capabilities can form the elemental blocks for understanding a bank and embarking on a digital transformation.
- Aligning funding to capabilities will result in strategic capabilities, are funded at an appropriate level.
- A strategic capability analysis can quickly identify the strengths and gaps, thus allowing for a super corporate development strategy – mergers, acquisitions, and consolidations, as well as in post-merger integration on deciding which capabilities from which bank shall be the default choice.
- Capability-centric roadmaps can provide a window into how the business teams intend to evolve the capabilities over time, rather than a siloed view currently offered by requirements tied to a project, not a cluster of capabilities.
- A common language can foster a better understanding of business needs thus enabling the IT teams to build/buy/integrate optimal technology solutions.
- As the Banking Business Capabilities Model is a digital product, it is sold as-is, and Finantrix will not accept any returns
- Depending on your bank size, functional areas and service lines, some or all of the Capabilities may not be relevant to you.
- Consultants, who may wish to use the capability model at several clients, have different terms and price.
- Sold on an as-is basis and no warranties
- This sale does not include implementation help or support. If you need professional services assistance, please contact us.
- Please review our standard terms of service.
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What are Business Capabilities?
Business capabilities are an abstraction of the underlying business functionality and are an expression of what a business does and can do. Please go here for a more thorough listing of business capability definitions various industry experts and business architecture practitioners.
What are the benefits of Business Capabilities?
There are several benefits a bank can derive by practicing the core tenets of business architecture and capability mapping. Here are a few:
- Bridge the ever-widening business and IT chasm
- Execute your strategy effectively by linking capabilities to strategic pillars
- Identify gaps and white space opportunities
- Minimize replication and redundancy
- Avoid project silos by crafting future needs as capability-centric roadmaps
- Influence the backend IT enablement with clusters of capabilities which can form a business service
- Make vendors decisions on a more structural building blocks of functionality
Will a generic business capability model fit our needs?
It is generic, but purpose-built for a bank encompassing core banking functions and transactions. Hence, based on sectors of banking activity, and the scope, breadth, and depth of services, somewhere between 60-90% of the Finantrix banking capabilities may fit your needs. Given this head start, you can accelerate the rest of the capabilities and have a customized banking business capability model in a matter of days, not months and years.
Can we not build a Capability Map on our own?
Of course, you can! However, the question is whether you should? About 75-90% of the capabilities will look similar to other banks, with the rest of the divergence attributable to both stylistic and substantive reasons. So, why start from scratch and waste intellectual capital, time and effort on something that looks similar to many of the other banking firms?
What if we already have a capability model?
Congratulations! You are well ahead of several of your peers in the banking sector. You may still find Finantrix banking capability model to cross-reference and plug the gaps in your design.
Who would use the Banking Business Capability Model?
- Business architects – for defining the banks’ functions and abilities into a common language
- Enterprise Architects – as an input into overall enterprise architecture
- Product Managers – to define capability-centric product roadmaps and products as clusters of capabilities.
- Business Analysts and project managers – draft requirements anchored to capabilities, and manage a project as a way to evolve capabilities
- M&A Strategists – to identify capability gaps and create a corporate development plan to bridge the gaps
- Vendor management teams – use capabilities as building blocks to evaluate vendor functionality.
Why should we pay for a capability model when we can do it ourselves?
The cost of $999 for an enterprise license is about a) Steak dinner without wine for a small team; b) 3-hours of a moderately priced consultant’s time and c) the occupancy cost of the conference room in a downtown setting over several sessions. Phew! Now, do you agree that the Finantrix banking capabilities map is rather the best deal in town? Yes, you are welcome!