g
Bank signing for Profits from its compatriot, Intrasoft, it was a very quiet year here. It was considerably busier in 2014, with Avaloq again
prominent. Isbank became the first retail bank in Germany to sign for Avaloq Banking Suite. The system will cover front to back office operations, replacing legacy software, IBBA (stemming from a Belgian vendor, Finance Technology, which now resides with IBM Belgium). It will run from a central back office in Frankfurt and will span Isbank’s operations across Europe, in a multi-site set-up. The first phase will cover Germany, France, Switzerland and the Netherlands. The bank also has an operation in Bulgaria, which is expected to be added at a later stage. Avaloq’s other German win was at private bank, BHF-
Bank. There was some uncertainty about this, as the bank has been bought by Kleinwort Benson. BHF-Bank was looking to standardise its core software across Germany and its subsidiaries in Luxembourg and Switzerland (which use ERI’s Olympic and Sungard’s Ambit Private Banking, respectively). The project might now be extended to the UK.
Also notable was a selection at another Turkish bank,
Ziraat Bank. Having given up on a plan to standardise its international operations on TCS’s Bancs, it started to make smaller, regional decisions and chose the Inter-face system from Turkish supplier, Intertech (subsidiary of Denizbank, now Sberbank), for Germany. The German operation of Ziraat is relatively big as it is a standalone subsidiary (rather than a branch), Ziraat Bank International AG, with HQ in Frankfurt and eight branches across the country. The bank had Paba/Q. And completing the interesting batch of 2014 core
banking selections, Sopra had a win for the Sopra Banking Platform at Banque PSA Finance. The system was taken to support a new online savings bank, PSA Direktbank Sword Apak won a contract in 2015 for Aurius system.
Greece
There are slightly over 50 credit institutions in Greece (17 commercial banks, 13 co-operative banks, 19 foreign operations from other EU member states, and four foreign operations of non-EU parentage). Even before the crisis, this wasn’t a market that tended
to buy international packages, having a largely in-house slant. There are also a couple of long-standing domestic vendors, with clutches of users – Intrasoft (Intracom, as was) with its Profits system, and Profile (with IMSPlus for wealth management and FMS for retail banking). Pre-crisis, Intracom/Intrasoft had picked up a couple of new entrants onto the Greek market, Ziraat Bank from Turkey and Kedr Bank from Russia. There has been some banking M&A in Greece, with core
system implications. Alpha Bank bought Emporiki Bank in late 2012 from Crédit Agricole for just €1 and then signed
an agreement to take over the good assets of Hellenic Postbank from the Greek government. Alpha Bank used Oracle FSS’s Flexcube for its international business as well as for some domestic activity (e.g. corporate lending) and ran an in-house built mainframe solution for domestic core operations (there were also various third party systems for specific functions such as trade finance, treasury and custody). Emporiki used the IBM-based Siglo legacy system from Accenture, and Hellenic Postbank ran Profits. Laiki Bank in Greece had the older version of T24, Globus
and a late running implementation of T24 Release 8 for its operation in Ukraine. Laiki used T24 in Cyprus, with the selection carried out after the merger with Marfin Bank and Egnatia Bank, with a decision to standardise on one core system. However, Laiki Cyprus and Bank of Cyprus were merged in 2013, presented as effectively the winding up of Laiki. At the latter, the painful T24 project was continuing (only savings accounts were live). As such, the combined bank was moved to Bank of Cyprus’ version of Misys’ Equation.
Ireland
This is a market that saw the two main banks badly hit by the financial crisis, with the government now owning Allied Irish Banks (AIB) and with a minority stake in Bank of Ireland. There are around 20 domestic banks and building societies in total plus around 400 single branch credit unions, that have struggled with technology renewal over the years, and a declining number of overseas financial institutions, down from the peak at the height of the country’s International Financial Services Centre initiative. The most notable core banking episode of recent years
saw AIB’s roll-out of Flexcube for its retail operations come to a juddering halt, culminating in the bank taking Oracle FSS to court claiming at least €84 million in damages, ending up with an out-of-court settlement. The bank was a happy user of Flexcube for wholesale banking and had embarked on a major roll-out at home and abroad for retail banking in 2007. A quirk of AIB was that its Financial Services arm had been offering T24 for some years on an outsource basis to other financial institutions, albeit with no known success. It was later sold to Capita. In the credit unions space, St Raphael’s Garda Credit union (the country’s largest) uses Temenos’ T24. It was originally supplied by a local partner of Temenos, CU Plus, but it went bust in early 2014 and Temenos took over its clients. There is also St Gabriel’s Credit Union, which implemented T24 for electronic fund transfers in 2011. The only deal in Ireland in 2010 went to Temenos, from GE Capital Woodchester; it added KBC in 2013. It was believed that during 2013 the Central Bank of Ireland was looking for a new core system but no deal is known. Banca Consulia awarded contract to ERI for Olympic banking system.
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