Jahangiri: Genworth Financial (Genworth) migrated 15 million client policies to a single IT platform. What were some of the challenges and rewards of this global initiative?
Rajaraman: Any migration/conversion has inherent challenges, and I think some of the interesting ones with this project were:
- the alignment of data from one system to another and the downstream reporting impact;
- the change management techniques used to absorb the changes as seamlessly as possible;
- the acclimatisation of new processes; and
- ensuring that there was no service disruption for the customer
Some of the most substantial rewards have been a greater consistency of service to our customers, the provision of in-depth analytics through which we can track what we do and make improvements more quickly than in the past, the creation of a centralised support structure, and lastly and importantly, a reduction in costs.
Jahangiri: How scalable is Genworth’s new online underwriting platform, and how do you see the online channel evolving in the wider wealth management sector?
Rajaraman: The global platforms are built on the services architecture concept, so from a scalability perspective they allow for the addition of new services as the customer requires them, which in turn means we can more easily cater to our customers’ needs and tailor solutions accordingly. From a technology refresh perspective, we have the ability to introduce new technologies as we see an increase in demand and take-up of those technologies. Our strategy has been one of fit-for-purpose to align to business value.
As for evolution into the wider wealth management sector, our global platforms already cater for this. In Australia we are introducing the self-service concept, providing value added services to our customers.
Jahangiri: Which IT trends are you keeping an eye on right now and why?
Rajaraman: Web 2.0, 3.0, mobile computing evolution, and the whole services-oriented concept. I am yet to see a complete implementation of this in the industry.
Jahangiri: What are your top IT priorities for the next 12 to 18 months?
Rajaraman: Optimising the platforms we have and the provision of value added services to our customers.
Jahangiri: How closely aligned is Genworth’s local technology roadmap with that of the global group and how have you tailored it to the Australian and New Zealand markets?
Rajaraman: Our IT strategy has always been based on three main principles:
- Think strategically, leveraging global best practices but implement locally
- Technology alignment to business processes (architecture driven)
- Must add value to our customers.
In keeping with these principles we are closely aligned and integrated with Genworth’s global IT strategy and have the ability to localise the initiatives for the Australian and New Zealand markets. We do this through effective customisation and utilisation of our services-oriented architecture. Essentially we create localised services.
Jahangiri: Wealth management is based on a relationship-driven business model between client and advisor. To what extent can the human element of customer service be transferred to online?
Rajaraman: We’re never going to replace the need for the human element in the relationship-driven business model. At Genworth our relationship with our customers is at the heart of everything we do, so the online channel is just another mechanism through which we can provide tools and services that add value to our customers.
Jahangiri: Has the mortgage lending market done enough in improving risk and compliance controls in the wake of the global downturn?
Rajaraman: Genworth responded to the significant economic changes of 2008, but didn’t do this in isolation. It was an industry-wide trend, as given what was happening globally, concern about keeping people in their homes and maintaining responsible lending practices were the priorities in that economic environment.
At Genworth, we introduced an underwriting scorecard to minimise the potential risks to customers in a volatile market, in conjunction with the implementation of enhanced fraud detection tools. In addition, we launched new data collection software to streamline processes and ensure consistency.
Furthermore, we expanded our hardship solutions team, approving over 6,500 applications for hardship in 2009, double the volumes of 2008.
Jahangiri: How far are the insurance and wealth management sectors from championing the single customer view and why?
Rajaraman: There has been significant progress, and the challenge now is the alignment of legacy into the customer. A single customer view is top of mind when CIOs are looking at strategic initiatives.
Jahangiri: What next generation skills will be in demand?
Rajaraman: My top three would be business savvy IT (consultancy skills); analytics; and Web 2.0
Jahangiri: What part of your job gives you the most satisfaction?
Rajaraman: Interacting with people. I am a very people-oriented person and love working with staff and customers on our various projects and initiatives and seeing them come to fruition.
Jahangiri: Every IT leader has a legacy they wish to be remembered for. What is yours?
Rajaraman: I hope mine would be that I was willing to give everything a go, and always put in the time and effort to make sure our customers received the quality service they expected.