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CASESTUDY
Banco Falabella rolls out Oracle FLEXCUBE
in Latin America, operating for more than 124 years in Chile, Peru, Colombia, Argentina, Mexico and Brazil. It generates USD 11,803 million in revenues, operating 382 stores and 36 shopping centres, and employs around 105,000 people in the region. It has five main areas of business— department stores, home improvement, supermarkets, financial services and real estate services.
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Banco Falabella, with assets worth USD 2,985 million in 2015, is a regional bank, founded in 1998 with operations in Chile, Peru and Colombia. It provides various products and services, including savings accounts, current accounts, and time deposits; mortgage credit, car loans, and other consumer credit services; mutual funds; insurance; and credit cards, as well as mobile and telephone banking. It is a subsidiary of Falabella Inversiones Financieras.
In 2016, Oracle completed the implementation of its FLEXCUBE system for Banco Falabella in Colombia and Chile. The bank’s IT architecture has historically been complex, with multiple legacy systems for each line of business in each country. It had separate systems for current accounts, savings accounts, loans modules etc. This led to several challenges such as higher operational costs, lower control, as well as impeded business expansion opportunities.
To address these issues, the bank decided to move to a single core banking platform to ensure uniformity in its operations. It undertook a detailed vendor evaluation procedure, and signed a contract with Oracle to implement FLEXCUBE for its business units in Chile, Colombia and Peru. Oracle was the preferred choice
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he Falabella Group is a leading retailer KEY FACTS
as it has a strong presence in the region, with multiple deployments. FLEXCUBE also contained several features and functionalities that were relevant to the region.
The main purpose of the assignment was to implement a core banking system that would support the bank’s growth objectives in Latin America. In addition to increasing operational efficiency and reducing costs, it was also looking at a system that gave it flexibility when launching new products, and taking them to market more quickly. The other main objective was the movement of all regional banking subsidiaries to a single technological framework.
Implementations of these types tend to be complex due to the existence of multiple disparate systems across various operational areas. The bank had to reengineer its entire middleware to talk to FLEXCUBE using new web services and EJB. A development team of 20 people
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