A California bank had been investing heavily in software development projects that were intended to benefit both its customers, as well as its own internal business operations (“internal-use”).
The internal-use software development projects that were undertaken by the bank were intended to improve internal workflows and automation which would ultimately lead to improvements in speed and reductions in cost. Due to the unique operations of the bank, a commercially available software solution did not exist which could be purchased to accomplish the needs of the bank. Rather, for most projects, the only option the bank had was to develop these solutions from the ground-up. Substantial resources were committed to these projects, and there was no guarantee that the investment of these resources could be recouped within a reasonable timeframe.
The customer-interactive software development projects were undertaken by the bank for a variety of reasons. This included enhancements to a customer dashboard, the development of a mobile banking application, enhancements to security authentications, and necessary compliance updates that were needed due to ever-changing regulatory requirements.