IBS Journal March 2015
The private banking players Conclusion
The first place to look for private banking wins is always Avaloq, as it gains the bulk of the large deals that are on offer each year. It was another good year for a supplier that remains in the ascendancy although none of its eight wins were in the category of tier one. Three were deals to traditional, low-end Swiss private banks, with another in Liechtenstein, one for its ASP offering in Germany (BHF-Bank) and two in Singapore (Deutsche Bank and a region- al player), plus the previously reported multi-site deal from Isbank (with some- thing of a retail banking slant to the main country in focus, Germany). The supplier’s largest projects are ongoing, from deals in the previous few years, at the likes of Barclays, HSBC and Westpac. Of course, when considering
private banking, other more generalist suppliers sometimes gain the nod, as was the case when Julius Baer opted for Temenos’ T24 in early 2015 (Avaloq came second, see front page).
Treasury and capital markets
Nowhere is the impact of M&A more pronounced than in this sector. While the two main suppliers to have avoided the consolidation have gained good hauls of deals once more, many others have fallen away. Calypso’s 14 new-name deals was
another impressive tally and included quality as well as quantity. It pulled in the standout deal within the combined selection at two central banks, Banco de Espana and Banque de France. It had three in Africa, with the rest in main- stream trading centres (three in the US, two in Canada, three in Western Europe aside from the central banks, and one in South Africa). It also had one large corporate but these are not included for the Sales League Table. Murex had a number of corporate
deals and pure front office wins (again, not counted in the table) but plenty that were in scope. There was a wider geographical spread than for Calypso, including a couple in Latin America (one of these was Banco Davivienda in Colombia), China Citic Bank Interna- tional for Hong Kong, one in the Middle
East (Bank Muscat in Oman) and one in Russia (Absolut Bank). The Summit system, now Fusion- capital Summit, from Misys, had a win in China, while Fusioncapital Opics had a solitary new-name win as well, in Indonesia, plus a couple of country extensions from existing users. Misys’ Reuters-derived Fusioncapital Kondor+ gained three deals, in Ghana, Jordan and Vietnam. Maybe benefitting from the void
left by others, Openlink had a good time of things, with seven deals for Fin- dur of which a couple were in Mexico, one in Brazil, and one each in Jamaica, Malaysia, the UK and US. The same might be the case for
Sungard with Ambit Treasury Manage- ment (Quantum, as was), which had a decent haul of ten low-end deals. There was a good geographical mix, with the deals coming in Europe (two each in the UK and Finland), Africa (South Africa, Mauritius and Egypt), and one each in Indonesia, Philippines and Australia. The supplier also had two wins for Front Arena, in Germany and UAE.
© IBS Intelligence 2015
It is debatable whether ERI still qualifies as a private banking specialist because, while this is the focus for most of its user base, deals in recent years have been more diverse, including a line in developing markets central banks. In 2014, it had UK start-up, BFC, which has a high net-worth slant, and a deal with an asset management focus in Kuwait but also the retail-oriented La Poste de la Cote d’Ivoire. Switzerland-based Sage AG had a notable off-the-record deal for its Prospero system at a private bank for Singapore and Hong Kong plus a front-to-back office win across wealth management and asset management in the Philippines, and another at a family office in Switzerland. The deals in this space are
considerably fewer than pre-crisis, with still sparse pickings in the traditional centres, where once the likes of ERI and Sungard (with Apsys, now Ambit Private Banking), made hay.
It will come as a great relief to those involved in the industry to finally see a pick- up, albeit modest, in the overall market in 2014. It might now be that we have a similar pattern to that much shorter, severe slump in 1999, when everyone was focused on Y2K. A number of systems never recovered from the downturn and it was, effectively, the end of the road for them as commercial offerings. Then, as looks to be the case now, others bounced back and resumed more or less where they left off. The end result of this natural and
M&A-derived wastage is a less populated market, which is a problem. Knocking around at the bottom of the Table at present is Oracle’s aforementioned OBP (the one deal in 2015 was for an online loan origination component, so doesn’t count as core) but constitutes a high-end addition to the market that might make it into the main- stream. Other newcomers are notable by their absence at present but perhaps niche offerings can spread their wings. A system such as Intertech’s Inter-face breaking out of its domestic market might add another relatively new system for banks to evaluate. Spain’s Indra is seeking to do the same with its Itecban core system and another Spanish supplier, Nessa, gained a win in 2014 at Banco de la Nacion in Peru as it seeks to take its system to the international markets. Perhaps a supplier such as Sword Apak can now do the same. It could be that it is from such one-country players that new options will emerge for the wider market. What are the hopes for 2015? Well, there
was cautious optimism within the supplier community. We asked the suppliers whether they felt 2015 would be better or worse than 2014. Around one-third felt things would improve, with around 40 per cent expecting things to remain more or less the same. That still left around 27 per cent of the belief that things would be worse in 2015 than in 2014, with no real correlation, that we could spot, between the levels of optimism and the geography or size of the suppliers. It all adds up to a fragmented picture, with some causes for optimism, a still tough market, and only a relatively small number of suppliers that are buoyant. Nevertheless, that’s a happier conclusion than for the previous few years.
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ibs sales league table 2015
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