IBS Journal March 2015


Russian vendors Sales League Table


With political instability, sanctions and the ongoing economic doldrums, the Russian market remains an unhappy hunting ground for international vendors. However, the domestic suppliers continued to gain business, with more or less the same vendors continuing to dominate their respective segments.


The number of banks in the country shrunk further in 2014, with nearly 80 entities losing their licences. By the time of this article going to print, there were around 780 banks active in Russia. The majority of the deals in the upper tier sector went the way


of the usual ‘heavyweights’, CFT and Diasoft, whilst the mid-tier and smaller sector was a happy hunting ground for Inversia (no surprises here). The pickings for international vendors were slim to say the


least, with just one deal recorded in the course of 2014. The bene- ficiary was Murex with its MX.3 treasury and capital markets (TCM) system, which is being rolled out front-to-back office at Absolut Bank. Murex’s rival, Calypso, gained an extension of a deal with Otkritie Financial Corporation Bank, to implement its TCM software


across the acquired Nomos-Bank operations. Andrei Fomichev, deputy chairman of CFT, observes that there


is a tendency among Russian banks to move away from foreign solutions to domestic ones, in an attempt to ‘reduce the costs and risks’. Mikhail Kryuchkov, director of global markets at Diasoft, com- ments that ‘in the current period of economic instability, changing to a foreign provider is not trendy’. As for the international vendors, Fomichev comments that


those that have been present in the country for a long while ‘do not want to lose this market’, citing SAP’s recent launch of a new data centre in Russia as ‘a case in point’. As for the domestic vendors, how does the Russian Sales


League Table look this year? Product CFT


Diasoft Inversia


Programbank R-Style Softlab BIS


CFT


CFT is in the top spot, with 15 new-name deals, and an upgrade of a long-standing client, Enisey Bank, from a Btrieve-based version of its flagship CFT-Bank system. All deals were in Russia, as the vendor con- tinues to focus here and in CIS. ‘Growing in our home market is a priority for us at present, and we have a good understand- ing of where the growth opportunities are,’ Fomichev states. Outsourcing also continues to be an area of focus for CFT, with a number of banks opting for ‘partial outsourcing’ in the course of 2014. Among


34 Supplier


CFT-Bank/CFT-Retail Bank Diasoft FA#/Flextera Bank 21 Century


Centaur Omega/Gefest RS-Bank 5.5/V6 QBIS


New-name customers signed in 2014 (previous years in brackets, with the most recent first)


15 (9, 16, 12, 17, 13, 26, 25, 19) 11 (10, 18, 11, 10, 7, 13, 20, 28) 10 (14, 12, 12, 18, 11, 10, 12, 15) 4 (5, 7)


2 (8, 13, 7, 7, 10, 9, 26, 30) 1 (6, 6, 8, 7, 2, 7, 8, 9)


them is KEB Bank Rus, a start-up owned by Korea Exchange Bank. The system went live in December 2014, with CFT taking on the IT department functions, supporting the bank’s users, running and developing the system. KEB is now in the process of connecting to the processing centre of CFT’s channel banking offering, Faktura.ru, for mobile and online services. In early 2015, the vendor picked up another greenfield banking entity owned by a foreign group, China Agricultural Bank, and Fomichev is confident that there are more start-ups to come in the course of this year.


© IBS Intelligence 2015 www.ibsintelligence.com


Number of deals outside Russia in 2014 (previous years in brackets, with the most recent first)


0 (2, 1, 2, 2, 3, 6) 1 (1, 0, 1, 0, 0, 0) 0 (1, 1, 2, 2, 2, 0) 0 (0, 0)


0 (1, 2, 1, 2, 0, 1) 0 (0, 0, 1, 2, 0, 1)


Among the 2014 deals was a project


to implement CFT-Bank to support the treasury operations of state-owned Russian Agricultural Bank; outsourcing contracts with Idea Bank (replacing an old installation of RS-Bank from rival vendor, R-Style Softlab) and Adamon Bank (replac- ing the Centaur Omega core system from another domestic supplier, Programbank). Ruscobank (Russian Commercial and Industrial Bank) opted to move from BIS’s QBIS core system onto CFT-Retail Bank. The majority of new-name business


came from Moscow-based entities, including a couple of prominent names


ibs sales league table 2015


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