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was a relatively small player in the Turkish market, with 25 branches at the time of signing, spanning corporate, SME and retail banking. Infosys had also won the stand-out deal in 2009, at Akbank, but the implementation was not successful. Akbank eventually reverted to its home-grown core system after several senior management changes, including on the IT side. The key to success at T-Bank was apparently a localisation layer which incorporated business practices and reporting requirements. A big bang go-live happened in May 2013. The other large Turkish bank to set off on a package


software route was Isbank in 2007, with FIS’s Corebank, although the resultant project came to a halt in 2011. The bank appointed a new CIO and reverted to its existing solutions, plus some salvaged Corebank components, and set out to build a SOA-based structure, with the in-house system at the core and various auxiliary applications around it.


Major banks here have large captive IT subsidiaries with


hundreds of people on the payroll. Garanti Bank, which operates Garanti Technology and Garanti Payment Systems, is fairly typical. Garanti Technology built a fully-fledged core system – GT Banking Solution – for its parent, which is used domestically and also for some international business lines. It was developed in the late 1990s and is mainframe-based. There were plans a few years ago to package the system and market it outside Turkey but this has not materialised to date. Finansbank also has an IT offshoot, IBTech, the developer


of the Core Finance back office system. Core Finance has been used by Finansbank domestically for over a decade, and for around six years in its Russian subsidiary. In 2007, IBTech received a patent for the system and seemed to be moving towards marketing the system to other banks, but no signings are known to date. The bank that has made a success of selling its in-


house system is Denizbank, via its Intertech subsidiary, with its Microsoft-based system now branded as Inter-face (previously Inter-next). Denizbank, which is now owned by Sberbank, has the system domestically and at a number of sites abroad (e.g. Austria). Intertech has also picked up contracts at home over the last few years (in 2013, for instance, it was chosen by Al Baraka Turk Participation Bank, a subsidiary of Bahrain-based Al Baraka Group, and Bank of Tokyo Mitsubishi UFJ, which was upgrading its representative office in Istanbul to a full bank subsidiary). Intertech added Rabobank in Turkey in 2014 and also took additional steps in moving beyond the country’s borders. There is also Winbank, a core banking offering from Istanbul- based vendor, BIS, but it mainly caters for commercial, corporate and investment banking operations, rather than


204


for retail finance. Turkey-based units of Deutsche Bank and JP Morgan are among Winbank users. There has been the odd treasury selection (Akbank had taken Misys’ Summit in 2008, for instance); there was a deal for Murex in 2013. All in all, the Turkish market – which comprises 54 banks – continues to be dominated by local development and in-house written software. However, Turkish banks do take international


systems for non-


domestic operations from time to time. In 2011, Al Baraka Turk Participation Bank selected Banks from ICSFS for Iraq. Ziraat Bank signed a notable multi-country deal in 2011 with TCS, plus a deal with regional supplier Colvir, for Central Asia, although the Bancs roll-out did not take off and the bank has instead subsequently started to select more local systems for regional projects.


Germany, Asseco for Sarajevo, Bosnia and


Intertech was chosen for Herzegovina.


Bosnia would have been the first site for Bancs. In 2013, French supplier, SAB, had its first success in


Turkey and it will be interesting to see if it can succeed where others have failed. The deal was at Istanbul-based Turkish Trade Bank, which took SAB AT for Islamic finance to replace its home-grown legacy system. SAB has been working with a local partner, Yaz Information Systems. Turkish Trade Bank was established as the country’s first private bank in the 1930s, providing conventional banking activities. The Saving Deposits Insurance Fund of Turkey has been the main shareholder of the bank since 1997, and in May 2013 decided to restructure Turkish Trade Bank as an Islamic bank (or, as it is called in Turkey, a participation bank). SAB AT was provisioned to go live in Q3 2014, which was when the bank planned to re-launch. No doubt Turkey will continue


to interest foreign


suppliers, with its population of around 70 million people, a continued strong economy largely unaffected by the global financial crisis (albeit with rising political tensions) and increasing demand for banking services. However, the market continues to be dominated by local development.


Vietnam


Vietnam has seen more core banking system replacement projects than most other countries around the globe in the last six or seven years. Drivers have been a booming economy and the arrival of foreign banks as strategic partners of some of the domestic players.


In


common with elsewhere, the results of the projects have been mixed. The top four banks have nearly half of the assets and 60


per cent of loans. The next eleven banks have another 36 per cent of assets. Overseas banks are among seven foreign strategic investors that have so far bought into about ten


Market Dynamics Report www.ibsintelligence.com


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