Banks Set Merger Plan - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance
News
10/31/2003
07:50 PM
50%
50%

Banks Set Merger Plan

Bank of America and FleetBoston decide how best to assimilate their IT systems

The merger of Bank of America Corp. and FleetBoston Financial Corp. will test the abilities of IT executives to plan and execute on a grand scale. The companies face formidable obstacles on their way to an anticipated $1.1 billion in savings.

Bank of America needs to assimilate FleetBoston's technology and systems, along with its 18 million customers, quickly and without customers being inconvenienced. Its executives need to map out which of its infrastructure and applications FleetBoston will migrate to, then methodically move Fleet's systems over.

The strategy differs from the one used by NationsBank when it acquired Bank of America in 1998. NationsBank mixed and matched apps and platforms from the two companies. This time, most of FleetBoston's major systems, with the exception of its branches, are likely to be scrapped or migrated to Bank of America systems, says Dennis Rygwalksi, former director of IS at FleetBoston who's now general manager of finance-industry solutions at Exigen Inc., a business-optimization software vendor.

The companies need to focus on melding business processes as well as technology, says Chris McLaughlin, director of financial-services marketing at FileNet Corp., which supplies back-office processing software to both institutions. Many of their business processes are hobbled by older legacy systems, he says.

Fleet had its share of problems when it merged with BankBoston in 1999. Fleet ripped out BankBoston's infrastructure, including the branches, which BankBoston had just revamped, and replaced it with its own. FleetBoston "put in [its] older technology, with adverse consequences for customers," says Jim Eckenrode, VP of consumer banking at research and advisory firm TowerGroup.

No matter what the integration approach, Rygwalksi says, a merger on the scale of that of Bank of America and FleetBoston will require flawless execution and acute attention to detail if it's to be a success.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Slideshows
10 Top Cloud Computing Startups
Cynthia Harvey, Freelance Journalist, InformationWeek,  8/3/2020
Commentary
How Enterprises Can Adopt Video Game Cloud Strategy
Joao-Pierre S. Ruth, Senior Writer,  7/28/2020
Commentary
Conversational AI Comes of Age
Guest Commentary, Guest Commentary,  8/7/2020
Register for InformationWeek Newsletters
Video
Current Issue
Special Report: Why Performance Testing is Crucial Today
This special report will help enterprises determine what they should expect from performance testing solutions and how to put them to work most efficiently. Get it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll