Partnerships
Some marketing has been done of the CBA payments solution by Logica, with IBAS one potential component within this company's Logica All Payments offering (along with the payments engine of Dovetail) but there have not been any successes via this route for CBA. Partners have been IBM, Oracle, BCS Information Systems (Singapore and Asia), Logic Software (Romania), Logica (Sweden), Samlink (Finland), and Systek (Norway). A partnership agreement with Bolero was also signed in April 2010.
Uptake and customer experiences
Despite the STP activity, and despite the resultant good publicity and support from Swift, there was only one IBAS win outside of the existing user base between 1996 and 2002. It came in 1998 in the form of Budapest Bank. At Sibos 2000 in San Francisco, Hauge said that CBA had a fair number of payments-related RFIs. It was also bidding at Bank of China, with CBA recommended to the bank by Swift. None of the leads came to anything. However, there was good news on the NGS front in the form of an additional order from long-standing user, Islandsbanki. The new agreement was signed in the second half of 2001 and covered a total upgrade of CBA’s clean payments application, including inward and outward customer transfers, customer branch payments, bank transfers, and internet payments.
Bunadarbanki also signed with CBA in the second half of 2001, initially for clean payments. IBAS survived this bank’s coming together in 2003 with aggressive fellow Icelandic bank, Kaupthing Bank. Indeed, in late 2004, Kaupthing upgraded, by signing for the Java-based versions of the trade finance and clean payments components of IBAS NGS. Kaupthing handled high-value domestic payments, through the Swedish clearing system RIX, from its Stockholm office, and cross-border payments in other currencies, in and out, through IBAS in a centralised set-up in Reykjavik. In 2007, the bank then signed for the system to also support its Norwegian payments operation. However, following the financial crisis, the assets of Kaupthing were passed to a new entity called Arion Banki, with IBAS now only used in Iceland. CBA also gained an order in September 2002 from Aktia Bank in Finland. As well as IBAS GPF, the bank signed for trade finance, accounting, and general ledger. In 2010, the bank conceded that there were reservations initially about CBA’s size but said it had had a good experience with the software and this had delivered tangible business benefits. IBAS was selected after the bank spent around seven years assessing various options. Technically, IBAS was considered ‘a very good system’, and the fact that payments and trade finance functionality were present within one system was also attractive, as was the price. The project progressed smoothly and quickly, according to Niklas Lemberg, director of payment services at the bank, with the solution’s flexibility confirmed by this client.
In terms of tangible benefits, the bank had previously employed four people for foreign payments. By 2010, it had one or, at times, one and half, despite a fourfold increase in volumes, said Lemberg. These staff were specifically focused on exceptions. For incoming and outgoing euro payments, the STP rate
was around 97 per cent. For cross-border payments in other currencies, this was understandably lower, but was still between 80 and 95 per cent, he said. If there was a problem with the routing of a payment, the look-up of data could be done manually and the rules put into the system so that next time the payment would be handled automatically. ‘So you build up a kind of knowledge base.’ Nonetheless, there has been a slight decline in the use of IBAS for payments at the bank due to SEPA, with these payments travelling a different route. This is via a form of middleware that links the bank’s branch system to Swift. Aktia Bank is the central bank for 75 local and co-operative banks and its branch platform is hosted by Finnish company, Samlink, which also houses the SEPA solution. Nevertheless, IBAS seems firmly entrenched in Aktia and still has a foreign payments role to play, as well as supporting trade finance and nostro/vostro accounting. In early 2007, the company also gained a breakthrough
in Asia Pacific with IBAS GPF, signing up OCBC in Singapore. The deal, the supplier’s first in the region, stemmed from its local partner, BCS Information Systems. The solution was implemented to support the bank’s operations in Singapore initially, followed by Malaysia, and at the time of signing, there was an option within the contract to extend the use of the system to other operations, including Indonesia, Vietnam and China, in line with the bank’s ambition to install a single global platform supporting all areas of payments. OCBC went live with the IBAS Global Clean Payments Factory on 9th January 2010, a slight delay from the original schedule of November 2009, due to the bank’s end of year activities. The bank was now apparently turning its attention to other projects, including Malaysia. Although there is no real payments focus to the deal, a signing with ABN Amro in the latter half of 2010 was also significant. The deal would see IBAS taken for the back office to underpin a move back into international trade finance, following the loss of ABN’s previous activities, people and systems to RBS as part of the earlier break-up of the bank. July
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