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been a number of banks on transformation routes to follow. The banking sector is competitive


for


some time and this sort of situation tends to put pressure on others


and this is a country that has seen strong GDP growth, with this predicted to continue although there has been something of a slowdown since 2013. As such, the country has recovered well from the severe banking crisis of the late 1990s, which saw the collapse of most of the sector. There has been almost a halving of the number of banks


in the last decade, from a high of 236, much of it due to consolidation. State-owned Bank Mandiri, formed from four failed banks at the end of the 1990s, is the largest bank, followed by Bank Rakyat Indonesia and privately-owned Bank Central Asia. While all of the banks that were bailed out in the late 1990s reverted to private ownership, the government-owned banks that remain account for around one-third of assets. The top 15 banks account for around 70 per cent. Aggressive Malaysian bank, CIMB, is a major player in Indonesia, with CIMB Niaga now the fifth largest bank, behind a government majority-owned entity, Bank Negara Indonesia. Temenos was the biggest winner in 2012, with five


core banking deals, at Bank Mayora, Bank Permata, Bank Tabungan Pensiunan


Nasional, Rabobank Indonesia and


State Bank of India. Other than that, ERI had a win for its Olympic private banking system at Mandiri Sekuritas, while there was one taker of Misys’ Opics. In 2011, by contrast, there had been five treasury deals


and four universal deals. These included deals for Oracle FSS and Temenos that had an Islamic banking requirement, reflecting a decree by the central bank that banks’ Islamic windows should be separated from the conventional parts. Flexcube was taken by Bank Muamalat, part of a major transformation by this 500+ branch bank; T24 was taken by Bank Artha Graha. Temenos also won conventional banking deals with Bank Mayora, a start-up, and BPR Karyajatnika Sadaya. Bank Andara, a 2010 win for Temenos, has been looking for other BPR (savings or credit institution) customers for its white-label offering based on T24. A major T24 implementation has been at Bank Syariah


Mandiri, following a late 2009 selection, the country’s largest Islamic bank and a subsidiary of Bank Mandiri. The 700-branch bank had implemented T24 across most branches by the end of 2012, around one year late, with non-core components still under implementation into early 2015. Of the five treasury deals in 2011, four went


Opics, and one went to Australia-based CCK, which had won one of the two treasury deals of the previous year, at Panin Bank. At least four of CCK’s wins in the region have been to replace Opics, including a 2009 deal in Indonesia at Bank Rakyat. Thomson Reuters (now Misys), which signed two deals in 2009 and one in 2010, has drawn a blank since


then for Kondor+/K+TP. In 2013, French supplier, SAB, joined the fray. This


stemmed from an agreement with Collega, a local vendor which will see SAB AT adapted to the local regulations and market specifics, and then replacing Collega’s own development at its eleven customers (four of these also have Islamic subsidiaries, and the system will be rolled out there as well). The delivery was planned for Q1 2014. The first to move was expected to be the largest user, with over two million accounts. Most of the roll-outs would be done on a SaaS basis, with Collega hosting the system at its data centre, in keeping with the current set-up of Collega’s clients. Temenos added another


and was also implementing T24 at Rabobank’s country operation. The core systems market remained


clutch to its haul in 2013 busy,


sometimes with an Islamic aspect, and Misys (Bankfusion), Oracle FSS and Polaris gained wins. It was quieter in 2014, with two treasury and capital


markets deals, for Opics (now Fusioncapital Opics) and Sungard’s Ambit Treasury, plus a core banking deal for Temenos. There could be change on the way. By early 2015, the


Indonesian authorities were considering the creation of an Islamic ‘mega bank’. The idea centres on the merger of the Islamic banking arms of three state-owned banks – Bank Syariah Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia. The Shari’ah-compliant banking unit of Bank Tabungan Negara (Bank BTN) might also be included in the merger, it was understood. Indonesia has the world’s largest Muslim population, but its Islamic banking segment comprised just 5.5 per cent of the country’s overall banking market, according to Ernst & Young’s World Islamic Banking Competitiveness Report 2014/15.


Only 2 deals were awarded in 2015 , that also for


treasury management system only. FIS won both the deals in Indonesia.


Japan to Misys’


The main banking software incursors in Japan have been the treasury and capital market system brigade. However, even here it has often been fairly slim pickings. There were two deals in 2012, for Misys’ Summit and Calypso, following one deal in 2011, also for Summit. Calypso, Murex, Misys and Sungard all have customers in the country from previous years and shared all but one of the country’s four deals in 2010 and five in 2009. One of Calypso’s two takers in 2010 was the Tokyo Stock Exchange. Japan still offers virtually nothing for the core banking


system suppliers. Among key obstacles that give domestic players the upper hand are regulations, local market


Market Dynamics Report www.ibsintelligence.com 133


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