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Bank: Mutual of Omaha Bank Vendor: Fiserv

System: Signature

Summary Type of financial institution: Savings & loans (thrift) Headquarters: Omaha, Nebraska, US Branches: 45 Assets: $4 billion

Project scope: Core system conversion and centralisation, head office and branches

System/vendor replaced: Outsourced processing by Fiserv and Jack Henry & Associates System/vendor installed: Signature from Fiserv Technology: DB2 platform, IBM hardware Functionality: Deposits;

loans; general ledger; Overview

Intrigued by the possibilities of cross-selling banking products to insurance holders and insurance to new bank customers, Mutual of Omaha established a new banking division, Omaha Financial Holdings, in January 2007. Omaha Financial Holdings was awarded a federal thrift charter in October 2007, by the US Office of Thrift Supervision.

This new bank would follow a strategy based on personal relationships and community banking. To support this strategy, it wanted brick-and-mortar branches in promising markets such as the American west and southwest, as well as in Nebraska, Mutual of Omaha’s home state. But it also wanted speed- to-market, so there was no time to build a de novo network.

Thus, retail

internet banking; internet cash management; electronic bill payment; enterprise content management, consumer and commercial loan origination systems, branch automation, interactive voice response system, outsourced item processing, outsourced electronic funds transfer and debit card processing

Interfaces: None

Selection team: Bank’s management, IT staff from parent insurance company, Mutual of Omaha and Gartner Selection time: Six months Installation team: Bank and vendor Installation time: Nine months Level of satisfaction: Very high

32 after hiring bankers with senior management

experience, Omaha Financial Holdings went bank shopping, not a bad decision when many US banks were either failing or being pushed to the brink and were anxious for rescue – a buyer’s market indeed.

In short order, Omaha Financial Holdings bought two community banks in May, 2007: Peak National Bank, located in Colorado and having $208 million in assets, and Security Federal Savings, based in Nebraska and with $122 million in assets. Two months later, Nebraska-based Midlands Financial Services, with $262 million in assets, was acquired. In October 2007, these three banks were merged into a renamed, rebranded institution, Mutual of Omaha Bank.

After adding a newly built branch at its parent’s headquarters in Nebraska, Mutual of Omaha Bank launched with a readymade network of 14 branches in two states and an existing customer base used to the personal touch of community banking.

But Mutual of Omaha was hampered by another legacy of the acquisitions, three separate retail banking systems. Michael Moritz, director of operations at Mutual of Omaha,

Core Banking Systems Case Studies: North America

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