Skip to content
Tiatra, LLCTiatra, LLC
Tiatra, LLC
Information Technology Solutions for Washington, DC Government Agencies
  • Home
  • About Us
  • Services
    • IT Engineering and Support
    • Software Development
    • Information Assurance and Testing
    • Project and Program Management
  • Clients & Partners
  • Careers
  • News
  • Contact
 
  • Home
  • About Us
  • Services
    • IT Engineering and Support
    • Software Development
    • Information Assurance and Testing
    • Project and Program Management
  • Clients & Partners
  • Careers
  • News
  • Contact

Arvest Bank reskills IT to support its banking core refresh

When Arvest, a regional bank operating in Arkansas, Kansas, Missouri and Oklahoma, hired Laura Merling as chief transformation and operations officer in 2021, one of the first things she changed was its digital transformation plan.

The 60-year-old bank, formed from the successive mergers of 14 regional banks, was planning to launch a neobank, an online-only service with national ambitions, as a way to ensure its future growth.

When Merling arrived in October 2021, Arvest had already begun the transformation process: conducting the first in a series of annual “Driving Change” surveys of staff attitudes and experimenting with the new core banking software around which it planned to build the new bank.

But there were challenges.

“Everybody was creating a retail neobank,” says Merling. That made for a competitive market in which the cost of acquiring a new customer was around $1,000. “You’d spend all your money on customer acquisition and not on building infrastructure,” she says.

On top of that, there was a degree of resistance — or at least indifference — to change within the company. Merling summarized the internal survey findings about staff readiness to change as one-third “Sure, I’m in,” one-third on the border, and one-third “I’m not really ready.”

It’s hard for staff to support change when it’s not clear what that change will be, she says.

Study, study, study

To get a clearer picture of where Arvest was, and where it wanted to go, Merling’s first moves were to commission one study of the company’s entire tech stack, and another of its data landscape. “We looked at them in parallel,” she says. “They’re related but also different: how easy is it to get to the data, and what data do we have?”

At the same time, she says, Arvest also conducted studies of its vulnerability to customer defection, and of the strengths it could capitalize on to build its new strategy.

“We did a lot in the first few months I was here,” she says.

The upshot of all that corporate introspection was a change in direction for the bank — or, rather, a return to what it had done best before. The plan for a neobank was dropped, and instead, says Merling, “We set forth a new mission. We wanted to be the leading community-focused bank serving commercial and small businesses.”

That didn’t mean the bank was turning its back on retail customers. By supporting local employers, “If you’re successful there, you’ll get the retail as well,” she says.

That meant building new applications and processes around its commercial loans — and making some changes to its core IT infrastructure.

A move to the cloud

A few months after Merling’s appointment, the bank announced a five-year partnership with Google Cloud as it prepared to digitize its contact center and move out of its two data centers.

“We can’t scale and be innovative if we’re just all waiting for on-prem,” she says.

Around this time, the results of the second Driving Change survey rolled in. Some of the transformation skeptics had drifted toward the “on the border” middle ground, but in the IT department — one of the first to see the clear direction as infrastructure changes began to take effect — resistance actually increased.

“It was all fear factor,” she says. “‘I’m going to lose my job,’ or ‘I don’t know this technology and I’m not going to get a chance to learn it.’”

Staff comments on the survey showed they didn’t feel their skills were valued, or even known, by management.

That prompted Arvest to create a program to help staff upskill or reskill. “We actually borrowed it from one of our partners,” she says. “They created it for their company internally.”

The upskilling program, called me@arvest, began in February 2022 with training for the IT team on Google Cloud as the company prepared to move its on-prem workloads there. “We needed people to know those skills,” says Merling. But creating the next wave of learning journeys took longer than planned. By the time it eventually happened in July, people were getting nervous they weren’t going to get the education, she adds.

The turning point was a full day of training around Google Cloud in November, with 500 people in the room and another 500 online. “We had our executives there, the bank presidents, the whole technology team plus,” she says.

Initially offered to the IT team, and later to operations staff, me@arvest will soon open to the marketing department.

Along the way, Merling decided to hire someone within the IT organization to run the program, which previously ran through HR. This plan enables her to meet the IT team’s skills needs up to ten years out.

A new purpose

One part of the original strategy Merling kept was the new core banking software from Thought Machine that Arvest had already experimented with — but now instead of redefining retail banking, it’s underpinning the modernization of the bank’s commercial lending processes.

“We’re basically rebuilding the entire technology stack for the bank by assuming a banking-as-a-service construct, whether we choose to use it or not,” she says.

By that, she means drawing on Thought Machine’s cloud-native, microservices-based approach, building new products and services that can be accessed through its APIs.

With the move to Thought Machine just beginning, the old core banking software won’t be going away just yet, so Arvest is using Google Cloud to deliver a single view of its customers. “It’s a key part of being able to serve customers going forward,” she says.

Merling brought in external help to stand up Google Cloud, training her own staff in parallel to ensure ongoing maintenance. “The Thought Machine work we did ourselves,” she says.

Under her transformation and operations umbrella are the CIO responsible for the existing core software, and the CTO building the new software. The development team was initially small, but is expanding through a mix of new hires and, as people learn new skills, internal transfers.

“My commitment to them was to make sure to bring everybody along for the ride,” she says. “I didn’t want to create an ‘us versus them’ situation. That’s super important to be able to grow the bank for the long term.”

Money talks

It’s a truism, but “90% of change management is communication,” she says.

To that end, each month she holds skip-level meetings with the second-level managers in her team, as well as “transformation talks” where the changes are presented to staff. Alongside the slow burn of rebuilding the banking core, these talks are also a chance to discuss “quick wins”: smaller technology changes that make a difference, such as the recent introduction of pre-authentication for customers calling the contact center. “That saved a minimum of 200 to 300 hours a month in call time,” says Merling.

Business Process Management, Cloud Management, Digital Transformation, Employee Experience, IT Leadership
Read More from This Article: Arvest Bank reskills IT to support its banking core refresh
Source: News

Category: NewsMarch 21, 2023
Tags: art

Post navigation

PreviousPrevious post:4 Factors That Influence Modern App Success in a Multi-Cloud EnvironmentNextNext post:Accenture acquires Flutura to boost industrial AI services

Related posts

Barb Wixom and MIT CISR on managing data like a product
May 30, 2025
Avery Dennison takes culture-first approach to AI transformation
May 30, 2025
The agentic AI assist Stanford University cancer care staff needed
May 30, 2025
Los desafíos de la era de la ‘IA en todas partes’, a fondo en Data & AI Summit 2025
May 30, 2025
“AI 비서가 팀 단위로 지원하는 효과”···퍼플렉시티, AI 프로젝트 10분 완성 도구 ‘랩스’ 출시
May 30, 2025
“ROI는 어디에?” AI 도입을 재고하게 만드는 실패 사례
May 30, 2025
Recent Posts
  • Barb Wixom and MIT CISR on managing data like a product
  • Avery Dennison takes culture-first approach to AI transformation
  • The agentic AI assist Stanford University cancer care staff needed
  • Los desafíos de la era de la ‘IA en todas partes’, a fondo en Data & AI Summit 2025
  • “AI 비서가 팀 단위로 지원하는 효과”···퍼플렉시티, AI 프로젝트 10분 완성 도구 ‘랩스’ 출시
Recent Comments
    Archives
    • May 2025
    • April 2025
    • March 2025
    • February 2025
    • January 2025
    • December 2024
    • November 2024
    • October 2024
    • September 2024
    • August 2024
    • July 2024
    • June 2024
    • May 2024
    • April 2024
    • March 2024
    • February 2024
    • January 2024
    • December 2023
    • November 2023
    • October 2023
    • September 2023
    • August 2023
    • July 2023
    • June 2023
    • May 2023
    • April 2023
    • March 2023
    • February 2023
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    • May 2020
    • April 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • September 2019
    • August 2019
    • July 2019
    • June 2019
    • May 2019
    • April 2019
    • March 2019
    • February 2019
    • January 2019
    • December 2018
    • November 2018
    • October 2018
    • September 2018
    • August 2018
    • July 2018
    • June 2018
    • May 2018
    • April 2018
    • March 2018
    • February 2018
    • January 2018
    • December 2017
    • November 2017
    • October 2017
    • September 2017
    • August 2017
    • July 2017
    • June 2017
    • May 2017
    • April 2017
    • March 2017
    • February 2017
    • January 2017
    Categories
    • News
    Meta
    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org
    Tiatra LLC.

    Tiatra, LLC, based in the Washington, DC metropolitan area, proudly serves federal government agencies, organizations that work with the government and other commercial businesses and organizations. Tiatra specializes in a broad range of information technology (IT) development and management services incorporating solid engineering, attention to client needs, and meeting or exceeding any security parameters required. Our small yet innovative company is structured with a full complement of the necessary technical experts, working with hands-on management, to provide a high level of service and competitive pricing for your systems and engineering requirements.

    Find us on:

    FacebookTwitterLinkedin

    Submitclear

    Tiatra, LLC
    Copyright 2016. All rights reserved.