1. All banks which go for a core banking driven
transformation face similar challenges
Situation Problems Solution Complications
15+ years old systems Functional gaps Limited knowledge of CBS
Mainly self developed Inconsistent data Build-in business processes
Select Core Banking
Well understood Different implementation
Low agility
System as strategic approach
System functions thinking Limited compliance
Parameterization within limits
platform of the future
Rich in functionality Limited scalability New strategic partner
Product thinking High maintenance Adopt, not adapt
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2. There is still a high failure rate of core banking driven transformations
Transformation Transformation
program program
delivered aborted
25 % 25 %
50 %
Transformation
program
delivered
while costs and timeline
doubled or tripled
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4. Case study Oracle FLEXCUBE, failed implementation at Allied Irish Bank
Scope Plan Challenges Results Learning
Retail banking Budget: Technical Program One wrong choice,
Accounts 84 million Euro implementation stopped in 2010 like the technical
Replacement of Time: : IBM’s z/DB2 AIB sued Oracle infrastructure, can
legacy retail 3 years platform, which for 84 million lead to a failed
banking platform is not Euro in 2011 program.
Started in 2007 supported by
Migrate Oracle/FLEXCU
5,000,000 BE
accounts to Program
Oracle management
FLEXCUBE shortcomings
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5. Case Study Temenos Globus/T24 at ING,
stopped CBS transformation after three years
Scope Plan Challenges Results Learning
Wholesale banking Budget: The requirements In 2005 the Significant change
Treasury - were significant program was of scope,
higher than underestimation of
Lending Time: stopped citing
anticipated
Corporate finance 3 years ‘internal complexity and
Underestimated
Payments need to meet reasons’ wrong technical
regional, head choice can lead to a
Cash management
office and country failed program
Risk management
requirements
General ledger Singapore was
the largest branch
35 Countries in Asia Pacific and
had a ‘wealth of
know-how’ which
Single view of a was not easy to
corporate customer transfer that
across all countries know-how to
head office
Change of
Start in 2002
database
technology during
the
implementation of
the CBS program
from Oracle to
jBase
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6. Case Study SAP at Commonwealth Bank of Australia,
Integration Partner Accenture, Costs double against initial estimation
Scope Plan Challenges Results Learning
Accounts Budget: Increase of Current Change of scale and
Deposits 580 million $ scale and scope knowledge (Mar scope may lead to
Loans Time: of the CBS 2013) on significant cost
Payments 4 years program Budget: overruns
Started in 2008 Acquisition of 1,300 million $
Replacement of Bank West and Time: A large SI partner
45 years old St Andrew’s 5+years will not prevent you
legacy IT system Need for from having costs
landscape significant overruns.
change of lately
renewed access
channels,
again.
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8. Oracle Flexcube at Chinatrust Commercial Bank Taiwan
Description Best Practice Patterns
Phased
Background Retail and Corporate Bank
Implementation
210 branches, >70 abroad
$50 billion assets
Model Bank
Scope Accounts, payments, trade finance, loans, Implementation
deposits
Oracle FSS Flexcube Universal Version 10 Socio-Cultural based
Selection of Consultancy
Objectives Core bank automation across foreign
branches with Headquarter to follow
Migrate all countries to the same common New Operating
system Model
Standardize services, improve cost base
and brand loyalty Prepared Business
Replicate good practice across group Processes
Challenges Managing the banks expectations Minimum
Changing the habit of the people in the Customization
bank
Ensure quality of software customization Communicate the
Coordinate brand and business strategy replacement as an
over borders business issue
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9. Temenos T24 at Schroders, Switzerland
Description Best Practice Patterns
Background Private & Corporate Banking
34 branches in 26 countries BigBangApproach
CHF 110 billion assets
Scope Private Banking EstablishedChangeM
Roll out in 3 countries anagement
18 months implementation time
Accounts, Deposits, Payments, Securities
RealPartnership
Objectives Increase operational efficiency and maximize
synergies within the group
Migrate all countries to the same common system
PreparedBusinessP
Improvement of CRM, risk management, and
rocesses
compliance
Reduction of complex interfaces and decrease the
number of technical and platform skills required BetheReferenceBa
nk
Challenges Data migration concerning existing silos of
redundant and inconsistent data
Ensure employees continued cooperation SharedStrategy
within the program
Ensure a smooth and complete knowledge
transfer Open Communication
Different tax issues and client reporting concerning Job Cuts
requirements of migrated countries
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10. Accenture Alnova Financial Solutions at BAWAG P.S.K. ,Austria
Description Best Practice Patterns
Background BAWAG acquired P.S.K.
PhasedImplement
Retail and corporate banking
ation
150 branches, > 1,300 post offices
€45.4 billion assets
Scope Accounts, deposits, payments, loans, credit Established Change
cards Management
29 months; in 5 countries
Alnova Financial Solutions
QualityPeople
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
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
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11. SAP Deposits Management & R/3 at MBA Lazard, Argentina
Description Best Practice Patterns
Background
Be the First
Reference Bank
Scope SAP – accounting (R/3), client and account
management (Deposits Management)
Investment banking back office operations
26 months implementation time
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
Challenges Integration requirements, more than 100
interfaces
Lack of expertise within SAP for its banking
software
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13. Case study
Scope Plan Challenges Results Learning
A A A A A
B B B B B
C C C C C
D
E
F
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14. CASE
Description Best Practice Patterns
Background
Best practice
pattern
Scope A
B
C
Objectives A
B
C
Challenges A
B
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15. 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.Schwab@imacor.de Frank is a pioneer of Online Banking, Mobile Banking and
Touch Point Banking and a winner of three European Awards
+49 173 670 623 3 in 2009 and 2010 for the New Online Banking, Mobile
Banking and Touch Banking at Q110 - The Deutsche Bank of
Skype: fjschwab the Future.
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