IBS Journal July – August 2015
… and seeks to reduce risks, costs and timeframes for core banking implementations
SAP has come up with a framework to try to accelerate implementations of its Deposits core banking system. Dubbed the Inte- grated Banking Delivery Model (IBDM), it is intended to provide an integrated ‘vertical stack’, in the words of Falk Rieker, global VP and head of banking at SAP, from opening an account through to the back office. This is initially for current accounts, savings, time deposits and consumer loans. It is the culmination of 18 months of effort, he says. While it might not sound much of a
breakthrough, SAP has traditionally had a problem integrating its own components. This has been an observation from a num- ber of users of its core banking system. Even a successful customer such as ATB in Canada has rejected the SAP user interface, opting instead to work with a third party to develop its own. SAP is promising to provide delivery of
the IBDM predefined scope for a fixed price and fixed timeline. This, says Rieker, should reduce risk, reduce the total cost of imple- mentation and operations, and mean ‘fast- er time to value’. Implementations taking this approach should take less than a year, he says. He hopes SAP’s delivery partners
will also fall into a fixed price/timescale model when working with IBDM. It is avail- able for both on-premise and managed cloud delivery. The framework will be aligned with the
processes defined within the SAP-derived industry association, BIAN. He envisages versions of IBDM for target countries, such as Brazil, China, Russia and the US, so too for Islamic banking, potentially with part- ners working on these iterations. For Islam- ic, Rieker says a partner has approached SAP about developing a version of the sys- tem for this form of banking in Malaysia. Rieker says the accelerated approach
has been tested on around twelve pro- jects over the last year, ahead of the official launch and extended scope. He cites well- known customer, Compartamos in Mexico, but also T-Mobile in the US, which is effec- tively a ‘green field’ implementation for banking services to support its launch of consumer loans. The likelihood is that the approach will also be applied to SAP’s lower end banking system, BCA (also known as Deposits), and lending system, CML (or Loans Manage- ment). BCA, which is integrated with SAP’s
Falk Rieker, SAP
ERP suite, already has a fair amount of pre-configuration. In a separate development, SAP has
announced the extension of its analytics applications, Bank Analyzer and the insur- ance equivalent, Insurance Analyzer, for enhanced cost allocation, with revenue allocation to follow. There have been devel- opment partners on the insurance side, says Rieker, with the work on the bank- ing side to follow, albeit with considerable overlap between the requirements.
Transcapitalbank signs for CBS core system from Colvir
Transcapitalbank, a top-50 bank in Russia, has finalised its core banking software overhaul plans. According to a source on the ground, the bank has signed for Colvir Software Solutions’ CBS platform, following a lengthy negotiation process. The bank will replace a number of legacy solutions, including the Diasoft #5NT core from a domestic vendor, Diasoft. It is believed that Diasoft competed for the new deal and so did another Russian heavyweight, CFT. This is a significant deal in its own right and is also a major breakthrough for Colvir in the Russian market. The bank currently ranks as 48th in the country by assets and 27th by net profit, it has a network of 78 locations across Russia, offering universal
Moscow © Alexandergusev, Wikipedia
banking products and services. It employs 2300+ people and has a customer base of 42,000 corporate and 352,000 retail clients. Its principal shareholders include the Euro- pean Bank for Reconstruction and Devel- opment (EBRD), DEG and International Finance Corporation (IFC). As for Colvir, it already has a handful of CBS users in Russia, but these are small-
© IBS Intelligence 2015
er entities. It also had a disappoint- ing experience in the past, with a number of ongoing projects halted for various reasons including banks ceasing to exist. The vendor will implement 35 modules of its flagship core system supporting a broad range of oper- ations, including lending, retail, treasury, trade finance, regulatory
reporting and delivery channels. It is understood that Colvir originally won this deal a while back, but the project did not go ahead as the bank attempted to upgrade its existing systems instead. However, the bank returned to Colvir in early 2015. The revived negotiations have finally been completed and the contract recently signed.
www.ibsintelligence.com 15
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