IBS Journal March 2015


The heavyweights


In the meantime, the vast bulk of the universal core banking systems market remains the third and fourth tier banks in emerging markets. The two runaway leaders as usual, Temenos with T24 and Oracle FSS with Flexcube, brought in good hauls of lower end deals. Temenos has remarkable resilience


in terms of the number of deals. Its 37 in 2014 was a slight increase on the 35 of 2013. Its only deals in Western Europe were three low-end ones in the UK, including 6 Towns Credit Union and Reall (previously Homeless International), a microfinance institution focused on the homeless. There was also a small private banking deal in Luxembourg. There was nothing in Central or Eastern Europe. Starting to build on its heightened presence in the US, it gained two small clients, plus Bermuda Commercial Bank. In a traditional market of strength, Canada, it added FirstOntario Credit Union and a small domestic bank. More productive for Temenos was


Asia/Asia Pacific, with four wins in Vietnam, two in the Philippines, and one each in India, Indonesia, Myanmar and Taiwan, plus one deal spanning China, Hong Kong and Cambodia. Incidentally, the vendor’s CEO has recently commented that the sales team in APAC had been too focused on new business and neglected existing clients. The Middle East was fairly healthy too, with six deals in six countries, so too Africa, with seven deals in seven countries, of which three were in North Africa. In Latin America, there were only solitary deals in Bolivia and Venezuela. How does this compare with Oracle


FSS with Flexcube? Its 27 new-name wins was a good haul and well up on 2013’s 15. It was a fairly similar pattern, geography-wise, to Temenos, except without any North American side to it. Oracle FSS’s strongest territory was Asia/Asia Pacific, with three deals in the Philippines (so a busy year in this country), two in Myanmar, one each in Laos, China, Pakistan, Cambodia and Afghanistan, plus a three-site deal for Pakistan, Afghanistan and Tajikistan. There was also a single deal in New Zealand. It was a like-for-like tally for Oracle FSS


in Africa – six deals, six countries, although only one of these was in North Africa. It was sparse pickings in Western Europe


Core Banking Systems Sales by % by Month in 2014


Source: IBS Intelligence


– Hampden & Co in the UK and a deal in Denmark, plus one each in Cyprus and Malta – and Central Europe – a solitary win in Belarus. The Middle East only produced single deals in Lebanon and the UAE, while the sole Central and South American win was in a former Temenos stronghold, Mexico (Banco Actinver). The nine Finacle deals for Infosys


were fairly small, compared with past wins for the Indian heavyweight. It had one in the Philippines, Producers’ Savings Bank, and the rest were spread around low-end banks in Africa and Asia, bar the interna- tional operation of an Indian bank in the UK. The Finacle business had posted a 5.4 per cent decline in quarter-on-quarter revenue for Q2 FY2015 in October 2014 and, at present at least, the larger-end deals of previous years are eluding it. Those nine deals in 2014 were the same in terms of quantity as 2013. Here, as with the other Indian domestic suppliers, we do not count deals to small domestic Indian banks and co-ops.


One supplier that had a poor year was


Path Solutions. We always feel it is a good benchmark for the Islamic banking sector and it brought in a mere four new wins, in UAE, Kuwait, Ghana and Sudan. This was six fewer than in 2013. We ask all suppliers to flag any Islamic banking deals amidst their conventional banking wins and, overall, it looked a depressed year in this sector. It has often been driven by spikes of


© IBS Intelligence 2015


activity in individual countries, as a result of regulatory changes, but there did not seem to be any of these last year. Some of the emerging countries that might have been expected to produce selections were quieter because of economic and/or political unrest. When we are looking around for the


largest deals in 2014, then the selection of Bancs from TCS Financial Solutions at Bank Yahav in Israel stands out. While TCS is not saying anything about the deal, it was announced in Israel by the bank. The win is broad in scope, including domestic retail and corporate banking, digital channels, wealth management, trade and treasury. The supplier’s other deals were considerably smaller but added up to a reasonable clutch, with another in China, where it has a good track-record, two securities-oriented ones in the US, and one each in France, Oman, India and Colombia (Corpbanca Investment Trust). SAP is another place to look when


trying to find higher end deals. SAP, which is one of the worst at getting any of its wins on-the-record, had a scattering of core banking contracts. Four of its deals were for its newer Deposits Management core banking system but one was for the older Deposits (BCA, as was). The Deposits win was in Austria. The Deposits Manage- ment deals came in China (where China Minsheng Bank had a long and troubled project), one in Brazil and two in the US.


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ibs sales league table 2015


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