g
They gained a new six-digit identification number and there were large signs about this in all branches. That number appears as the common central digits in a customer’s account numbers. After the cut-over, all customers were provided with a consolidated statement which showed their positions with the old account numbers alongside those with the new account numbers. There was no adverse feedback at all, said Dickens
Go-live
The bank’s ATM network was connected and went live on 1st January 2005, one day ahead of the ‘big bang’ cut-over of the 2nd. Capbank itself was turned off on 1st, based on ADCB’s confidence that everything was on track. ‘There was no roll-back, so we had to be sure.’ All the careful thought and preparation ensured that everything went smoothly from the outset. Corporate internet banking was added six months later, followed by personal internet banking after another six months. For these, the bank opted for Oracle FSS’s internet banking solution. There was not a separate selection, as this functionality had been one part of the original evaluation.
Stabilization
The fact that the internet banking software was integrated with the back office meant it made sense to use one vendor for both. The bank had deliberately chosen only to address internet banking as a later phase because it wanted to be sure that the base system was stable. Dickens estimated that in two to three years’ time around half the bank’s activities might be via this channel. There was some customization needed here, to make access as easy as possible. ADCB wanted to link it to customers’ ATM card numbers and PINs, with these used by customers for the initial access, after which they can set up their own profiles and passwords. This was a new development as it was not previously available in the system. The bank also took Oracle FSS’s middleware.
The intention was to replace all of the bespoke interfaces with this standard layer. The different channels should be viewed as one consistent product block, explained Dickens, so that one change should be rapidly applicable to each. He felt the rationalization of the architecture was a ‘natural evolution’. A Service Oriented Architecture (SOA) approach had ‘influenced our thinking’, he said. Increasingly, the core banking system should be untouched, with purpose-built applications around it. The bank also turned to Oracle FSS for its Shari’ah-compliant banking needs. ADCB set up an
Islamic banking window, ADCB Meethaq, in 2008. There are separate branches and windows within existing branches, a separate website, call center and systems.
There might be a flag on accounts to show where a customer has both Islamic and standard products and accounts but that is about it in terms of cross-over. Flexcube UBS (Universal Banking System) Islamic supports ACDB Meethaq’s activity.
Project observations
There is a lot more innovation, in terms of new products and channels, and the core system replacement has been an important building block. Fortunately, despite the problems of the past, most of the customers had remained loyal, so ADCB was able to build on this base, with much of the marked improvement in profits coming from here, with a wider range of products and much greater flexibility and time to market, as well as improved customer service in the branches and via new channels.
The results are clear from a glance at ADCB’s financial results: at the end of 2003, it had profits of around $100 million; by the end of 2005, this figure was $500 million. In early 2011, the bank reported a 2010 pre-provision profit ‘at record level’: $1 billion. Also in 2010, it acquired the UAE-based retail banking, wealth management and SME businesses of the Royal Bank of Scotland (RBS).
Past assignments like these have helped develop FLEXCUBE Islamic Banking solutions to address the needs of both pure-play Islamic banks as well as conventional banks with Islamic banking windows. Oracle FLEXCUBE Islamic Banking now offers a comprehensive back-office processing environment for a wide range of Islamic financial products including Mudaraba, Qard, Murabaha, Ijarah, Musharaka, Istisna, Salam, Tawarruq and Sukuk. Its extensibility framework enables the configuration and launch of new products swiftly. With growing demand for Sharia-compliant Islamic banking products, Oracle is poised for the next wave of growth in catering to Islamic banking needs. pilot it.
Oracle FSS claims to have more than 900 customers in 145 countries globally. As well as its back office systems, the firm offers customer insight, anti-money laundering (AML) and risk management solutions. Flexcube is used by a diverse range of institutions, including microfinance entities, private banks, payments institutions and Islamic banks.
Islamic Report
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