IBS Journal September 2015
Will HCL Technologies help CSC revive Hogan’s fortunes?
Computer Sciences Corporation (CSC) and HCL Technologies, two US and Indian IT services companies, have teamed up to create a banking software and services joint venture. A definitive joint venture agreement
was signed in August, and will lead to investment in platform modernisation and product functionality enhancement, claim the two parties. CSC will provide core banking, cards,
payments, and software and product development. While HCL will provide cap- ital investment, application implementa- tion, and banking sales experience. This joint venture represents the latest
attempt by CSC to modernise its legacy offer- ings, namely Hogan for core banking and CAMS for payments. The roadmap for these remains focused on Celeriti, an upgrade path introduced by the vendor back in 2010. Celeriti was pitched by the vendor as
an end-to-end suite of SOA-based enter- prise software for banking, cards, payments and lending, and offered to Hogan users as part of an upgrade to newer versions of Hogan, or for progressive replacement of functionality.
However, the uptake has been less
than enthusiastic. The first taker was First Tennessee Bank in the US, followed by another institution in the US, and Westpac in Australia. IBS is not aware of any other Celeriti users to date. By 2013, it was decided that SAP’s pay-
ments and core banking software would be an upgrade path for the Hogan users. The tie-up was duly announced in spring 2013, extended to a cloud-related part- nership a year later (Hogan users in the US were offered a move to a cloud-based SAP for Banking platform hosted by CSC), but no tangible results have transpired so far. The venture seems to have gone into a dormant mode. SAP’s management has expressed its
disappointment at the lack of deals here, as there was expectation that the Hogan user base would be willing to move away from its ageing software (which is now largely in maintenance mode, with CSC carrying out bespoke work on its existing installations). Another influence was felt to be the shrinking pool of Hogan special- ists (as they are reaching the retirement age).
There has been no spark of enthusiasm so far (and of those very few that have initiated an IT overhaul, other suppliers were chosen, to IBS’s knowledge). One long-standing user, Keybank (the bank also runs FIS’ Systematics), has recently gone on the record saying that it is happy with its existing core and has no plans to change it. It has described the platform as ‘rock solid’ but over time its functionality has been reduced to just transaction process- ing, supplemented by an enterprise service layer around it that deals with all the busi- ness logic. Another Hogan user, PNC Bank, is focus- ing on applying the Banking Industry Archi- tecture Network (BIAN) compliant frame- work around its core software rather than taking the ‘rip and replace’ route, at least for the time being (an in-depth case study on PNC’s technology strategy can be found in the March 2015 edition of the IBS Journal). There are a dozen or so Hogan users in the US and another ten or so around the world (with a number of these either in the process of moving off Hogan to another solution or looking for a replacement). Antony Peyton
We have lift-off: Elevate Capital goes live with Profile Software’s P2P lending solution
Elevate Capital, a real estate crowdfunding company, is the first live UK customer for Profile Software’s peer-to-peer (P2P) lending platform. The platform is based on the vendor’s long-standing core banking system,
FMS.next. Elevate is a start-up and chose
FMS.next
for the launch of its web-based investment and fundraising operations. The deal dates back to 2012, but it took quite a while for Elevate Capital to get up and running.
FMS.next’s core engine is a combination
of investment management and banking modules. Profile says the solution incorpo-
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rates a workflow engine for originating and progressing transactions, credit scoring, risk management and fully automated loan proce- dures, as well as investment features for both primary and secondary market operations, with analysis of investment performance. In May 2013, Profile launched
FMS.next
as a new release of its core banking sys- tem FMS. The system is designed with the Windows Presentation Foundation (WPF), uses Microsoft’s Silverlight framework and ClickOnce technology, and is available on all standard RDBMS, such as MS SQL, Oracle and DB2. It is available as a desktop appli-
© IBS Intelligence 2015
www.ibsintelligence.com
cation or via a web browser, and can also provide services via mobile devices. Profile has been keen to gain a foot- hold in the UK for a number of years now. Last year, it joined forces with a local con- sultancy firm, Tusmor, to bring to market an outsourced ‘bank in a box’ offering for small banks and start-ups. One challenger bank, Civilised Bank, is
known to have signed up for the offering so far. The bank is in the process of obtain- ing a licence and hopes to open for busi- ness by the end of 2015.
Antony Peyton
ibs news
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