www.imacor.de All banks which go for a core banking driven transformation face similar challenges Situation 15+ years old systems Mainly self developed Well understood System functions thinking Rich in functionality Product thinking Problems Solution Complications Functional gaps Inconsistent data Low agility Limited compliance Limited scalability High maintenance Select Core Banking System as strategic platform of the future Limited knowledge of CBS Build-in business processes Different implementation approach Parameterization within limits New strategic partner Adopt, not adapt
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www.imacor.de
All banks which go for a core banking driven transformation face similar challenges
Situation 15+ years old systems
Mainly self developed
Well understood
System functions thinking
Rich in functionality
Product thinking
Problems Solution Complications
Functional gaps
Inconsistent data
Low agility
Limited compliance
Limited scalability
High maintenance
Select Core Banking
System as strategic
platform of the future
Limited knowledge of CBS
Build-in business processes
Different implementation
approach
Parameterization within limits
New strategic partner
Adopt, not adapt
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There is still a high failure rate of core banking driven transformations
Transformation programaborted
Transformation programdelivered
Transformation programdeliveredwhile costs and timelinedoubled or tripled
25 %25 %
50 %
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Failure
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Case study Oracle FLEXCUBE, failed implementation at Allied Irish Bank
Budget:84 million Euro
Time:3 years
Technical implementation: IBM’s z/DB2 platform, which is not supported by Oracle/FLEXCUBE
Program management shortcomings
Program stopped in 2010
AIB sued Oracle for 84 million Euro in 2011
Retail banking Accounts Replacement of
legacy retail banking platform
Started in 2007 Migrate
5,000,000 accounts to Oracle FLEXCUBE
Learning
One wrong choice, like the technical infrastructure, can lead to a failed program.
PlanScope Challenges Results
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Case Study Temenos Globus/T24 at ING, stopped CBS transformation after three years
Budget:-
Time:3 years
The requirements were significant higher than anticipated
Underestimated need to meet regional, head office and country requirements
Singapore was the largest branch in Asia Pacific and had a ‘wealth of know-how’ which was not easy to transfer that know-how to head office
Change of database technology during the implementation of the CBS program from Oracle to jBase
In 2005 the program was stopped citing ‘internal reasons’
29 months; in 5 countries Alnova Financial Solutions
Challenges Adjust business and IT processes Migrate all P.S.K. client account data to the
new system Achieve a solid post-merger IT platform for
its constituent organizations
Description
Objectives Reducing the need for large back offices Provide online access to all customer- and
product-related information Streamline work processes Create synergies between IT capabilities
and business goals Adapt quickly to new market conditions
Best Practice Patterns
Background BAWAG acquired P.S.K. Retail and corporate banking 150 branches, > 1,300 post offices €45.4 billion assets
Accenture Alnova Financial Solutions at BAWAG P.S.K. ,Austria
Phased Implementation
Established Change Management
Quality People
CASE
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Scope SAP – accounting (R/3), client and account management (Deposits Management)
Investment banking back office operations 26 months implementation time
Challenges Integration requirements, more than 100interfaces
Lack of expertise within SAP for its banking software
Description
Objectives To move from being a small local player to a much larger institution, focused not only on Argentina but also other central and south American countries
Adoption of Basel II
Best Practice Patterns
Background MBA Lazard Argentina is a pure investment bank
No branches
SAP Deposits Management & R/3 at MBA Lazard, ArgentinaCASE
Be the First Reference Bank
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Templates
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Case study
A B C
A B C
A B C
A B C
Learning
ABCDEF
PlanScope Challenges Results
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Scope A B C
Challenges A B
Description
Objectives A B C
Best Practice Patterns
Background A B
CASECASE
Best practicepattern
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Contact
Frank Schwab’s customers are banks, IT consultancies and IT Service Providers in Europe and Middle East.
Frank has more than 14 years experience of IT transformations. He has planned CBS-driven IT transformations based on SAP, Flexcube, Temenos, OSPlus, and others in Scandinavia, Middle East, Eastern Europe, Germany and others.
Until 2009 he was chief architect at Deutsche Bank. Amongst others he was responsible for the planning of the IT transformation based on SAP Banking, the set up and (10 years later) the renewal of the Online Banking, the introduction of Mobile Banking and the set up of the first German lab for Banking IT. Frank also designed an ASP Core Banking model based on SAP Banking Services.
Frank is a pioneer of Online Banking, Mobile Banking and Touch Point Banking and a winner of three European Awards in 2009 and 2010 for the New Online Banking, Mobile Banking and Touch Banking at Q110 - The Deutsche Bank of the Future.