(the implementation was originally scheduled for early 2010, but was now reset for 2011) and the initial budget of $157 million had had to be significantly increased. No comment was available from ATB and IBS was referred to the bank’s management discussion and analysis (MD&A) report. Here, the bank stated that although ATB realised from the outset the scale of the initiative and ‘allocated a substantial amount of resources, both people and capital’ for it, the extent of the work involved was underestimated. ‘ATB has recently determined that the scope and effort behind the project is significantly larger than initially anticipated. Further, ATB believes that the management of the programme can be strengthened.’ ATB’s senior management, together with ‘certain key external advisors’, also undertook a review of the venture. ‘Key steps in this process include formally locking down the project scope, reviewing and amending the project plan and schedule for completion, and reviewing and significantly strengthening the project management structure and reporting process,’ ATB stated. However, it also emphasised that ATB’s management remained ‘fully committed to this transformation’. Nonetheless, the conversion date was again missed, this time by six months, and ATB actually went live with the SAP for Banking suite in September 2011. ATB initially planned to use the payment system for different scenarios to Postbank, particularly with regard to cross-border payments. Egetoft stated that ‘we have developed some functionality in that direction, and we are talking to them about enhancing their cross-border payments’. By late 2012, SAP claimed to be in discussions with a number of prospects, but Postbank and ATB were the only two known takers for payments at this time (or three, if including Deutsche Bank, which acquired Deutsche Postbank - see below). Egetoft put the relatively slow take-up down to the willingness of banks in the short and medium term to select tactical solutions to meet regulatory deadlines. The group- wide re-engineering projects in the light of SEPA, on which the system was premised, had not yet materialised. The deals SAP had won, he suggested, were where a bank decided to take a ‘strategic’ view, rather than ‘repairing and getting ready for the next deadline’. However, Egetoft thought it likely that a wave of such projects would materialise, most probably under pressure from regulators. It appeared that, following its acquisition of Deutsche
Postbank, Deutsche Bank would implement the payments solution for its own domestic operations, as it sought to implement core banking software from SAP with the aim of standardisation. ‘Standardising the core is the key to this project,’ stated a Deutsche Bank spokesperson. ‘It will help us to bring new products to the market faster and more easily, to differentiate us from our competition.’ SAP was to carry out most of the work, with the implementation done in stages. The entire project was expected to last about four or five years. For payments, given the outsource agreement between Postbank
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and Deutsche Bank, the latter’s payments traffic was always intended to end up on the former’s SAP platform but it now looked as though this would happen under slightly different circumstances.
Things moved on over the next 18 months or so, with
SAP claiming six live sites by May 2014. The additions were Mexico-based Compartamos Banco, and Germany-based Bank für Sozialwirtschaft, Deutsche Bank (as expected) and HSH Nordbank. The latter two are on an outsource basis via BCB. BCB was already running the two banks’ payments business but had migrated them to the SAP platform for SEPA and might now add other payment products, said Ewering. In addition, SAP claimed other signings at this time in New
Zealand and South Africa, likely to be existing core banking system takers, Kiwibank (which had recently committed to a multi-year $100m SAP core system replacement project) and long-standing user, Standard Bank, plus others in Argentina (it has a few users here), the Netherlands (again, there are a few users here but the taker was described as an insurance company for its banking-related activities) and two in the US. Most had taken the Payment Engine within wider roll-outs of Deposits Management but the two US ones were standalone payment projects, while Bank für Sozialwirtshaft has SAP’s older, lower-end core system, BCA/Deposits. SAP was keen to emphasise that a pre-configured version
of the Payment Engine could be relatively easily implemented, with Bank für Socialwirtschaft working with one of SAP’s smaller payments partners, Alseda Consulting, on a ten- month roll-out. ‘It shows it is no longer the complex solution that we had in the beginning at Deutsche Postbank,’ said Ewering. Bank für Socialwirtschaft is a payments specialist and could experience sudden large event-driven spikes in volumes so needed a system that could cater for these, he said. The cutover at Mexican micro-lender, Compartamos, also showed the applicability of the Payment Engine to a diverse range of institutions. The user, which had been embroiled in a long roll-out of SAP’s core system, has a lot of low-value transactions, said Ewering, and one benefit of 8.0 would be Compartamos’ ability to configure the system to quickly add new channels without the need for coding. The institution has an unusual business model as it is based on group loans and third party agents (around 10,000) for collecting and disbursing loans.
Another deal was in October 2017 when Llyods Banking
Group in UK selected SAP’s cash management and payments platform for corporate and institutional clients. This is part of larger implementation where the bank is using SAP’s deposit management, payment engine and omnichannel banking solutions.
Payment Systems & Suppliers Report |
www.ibsintelligence.com
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