The bank followed a formal systems selection process. Some years previously the bank had made inquiries into other possible vendors, so it had some knowledge of what was on the market. As a result, the bank started with a list of eight or nine potential vendors. The alternatives available to the bank were to buy a package or to outsource a solution. The bank identified three potential vendors for the 'buy' option, including a Swiss vendor, ERI, with its Olympic banking system and Belgium-based Callataÿ &Wouters (C&W– now part of Sopra) with Thaler. For the outsourced solution the bank identified two potential vendors – C&Wworking in conjunction with Clearstream, and outsourced services offered by BNP Paribas.
Working with computer consultants who were supplied by UFG-LFP's parent bank, the bank defined the objectives that were to be achieved and defined the bank's functionality requirements.
There were then visits to the potential vendors and from that shortlist the bank chose the Thaler system from C&W. 'We paid them visits and had demonstrations to verify they met our needs and then we began to work with them,' said de Thomaz. The bank was satisfied the product would not only address its current needs but be able to meet its future needs also. Having decided on the preferred system from a functionality point of view, the bank then looked at how that functionality could be delivered in the most cost- effective way. UFG-LFP already used hosted solutions provided by Clearstream for Swift and for business continuity and was satisfied with those services. To address the core banking requirement, Clearstream took on the prime contractor role and assumed responsibility for providing the Thaler system on an 'on- demand' SaaS basis.
The advantage from the bank's point of view was that it got the functionality of 'an enormous solution' but at a cost that could be borne by a small bank by paying for services on an 'as needed' basis. 'The hosted solution is also used by Dresdner Bank in Belgium,' said Jo de Jamblinne, ICT manager at the bank, with each bank having its own database but using a common version of the application software. 'This means that we can take advantage of what is happening in Belgium and they can take advantage of what is happening here,' said de Jamblinne.
