M&A Integration: The Important Role of IT

by CDW Financial Services|Nov 28, 2016

Mergers and acquisition activity continues to remain hot in the financial services industry. While the M&A process varies from organization to organization, IT and technology have a big role to play in the process. This week’s FIN News shares insights from the American Banker article “Want Speedy M&A Integration? Involve Tech Team at Every Step” and highlights one banking executive’s thoughts on the evolving role of IT in the M&A process. Here are the key takeaways:

  • Amy Brady, chief information officer, discussed the important role of IT in KeyCorp’s $4.1 billion acquisition of First Niagara Financial Group.
  • She points out IT and operations play a huge role together during M&A and it is important that they work together.
  • At her bank, they completed a systems conversions on Oct. 11, less than a year after the deal was announced and about 75 days after it closed.
  • Brady says the speed is a result of preparation and having a concrete plan.

Here are some more of her best practices for a smooth integration:

  1. To ensure that only one system is used moving forward, set-up an inventory and systems assessment.
  2. Execute a decision process for any applications that had an overlap with the other bank.
  3. Focus on architecture simplification with minimal duplicate systems.
  4. Hold weekly cross team meeting and status meetings.
  5. Have a centralized project manager that communicates with all team members.
  6. Provide continuous monitoring of system performance in real time — before, during and after the event.
  7. When issues arise, working together as a team can allow the team to react quickly and resolve the issue.

Is a merger or acquisition in your bank or credit union’s future plans? Our latest infographic addresses provides challenges to prepare for and provides five tips to ensure success.