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:
- To ensure that only one system is used moving forward, set-up an inventory and systems assessment.
- Execute a decision process for any applications that had an overlap with the other bank.
- Focus on architecture simplification with minimal duplicate systems.
- Hold weekly cross team meeting and status meetings.
- Have a centralized project manager that communicates with all team members.
- Provide continuous monitoring of system performance in real time — before, during and after the event.
- 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.