a receiving bank and has the potential to become a sending bank. A number of enhancements were made to SmartVista to support specifics of the MoneySend service. In mid-2008, Diners Club New Zealand (NZ) was another notable signing. With an incumbent in-house legacy system written over 20 years earlier, Diners Club executive director of regional operations, James Koh, said that the replacement search was driven by a ‘desire to enhance customer service and be proactive in the market’ while overcoming a technology knowledge drain as ‘people moved on over time’. He described the BPC SmartVista solution as ‘robust, flexible and scalable’ and said that he had been ‘quite impressed’ with what he had seen [from BPC].
Diners Club uses SmartVista’s Front-End, Back-Office and
CardGen components plus a fraud prevention and monitoring module. The implementation was expected to be completed in several phases. Implementations in the Singapore and Malaysia Diners Club operations were also under consideration depending on how the New Zealand implementation fared. Shortly after the Diners Club announcement, also in 2008, four more wins for in-house card processing centres based on SmartVista were announced. These were at Tsesnabank in Kazakhstan, Apl Jamol Bank in Uzbekistan, plus Vneshprombank and West Siberian Processing Centre, both in Russia. These projects were expected to take about six months. The wins reflected improvements in the system undertaken in the previous two years or so, according to Faris Al-Mashta, business development director of BPC. The four new customers were all implementing fully functional in- house card processing centres based on SmartVista. In the cases of Tsesnabank, Apl Jamol Bank and
Vneshprombank, they were migrating from a third party processor. Al-Mashta saw this as a trend. In Russia, he cited the fact that there were more than 1000 banks but perhaps fewer than 150 processing centres reflecting the fact that most ‘want to have their own in-house processing systems, for reasons of both politics and economics’. Third party card processors form the bulk of the market and are mainly tied to one or other large banking group. If a small, ambitious and growing bank ‘wants to be processed through a third party, there will at some point be a conflict of interest’ for the processor. This may show itself in different ways. ‘The processor will maybe try to limit the introduction of new products for this particular bank if it sees competition for its main mother bank,’ he felt. Alternatively, a processor which does business with a competitor might introduce some ‘new tariffs’ for the smaller bank. Sharing a processor might present an opportunity to ‘familiarise’ a bank with the newer products of its rivals. According to Al-Mashta, BPC typically competed with companies such as Openway, the Belgium-based payments processor, and Nordic player, Tieto. Not only does BPC tout a lower implementation cost, it pushes a fixed price structure. At the end of July 2008, Donga Bank in Vietnam launched
a Visa debit and credit card business using SmartVista, followed by MasterCard and ATM card issuing, management and processing. The project involved BPC’s local Vietnamese partner, CMC Corporation. Back in its Russian market, a notable deal was signed in
May 2011 following a government decision to introduce a combined identity document and payments card, dubbed the Universal Electronic Card (UEC). This was issued on a voluntary basis as of January 2013, but was expected to become a mandatory requirement for all 143 million Russian citizens in 2014. The entity in charge of this initiative was an open joint stock company run by the state and also dubbed UEC, with the software selection process pitting BPC against the likes of Asteros and Openway. International vendors were not considered, but the team examined the experiences of similar ventures abroad, including France and Germany, and took onboard international best practices, said Vladislav Rudich, the UEC project manager at BPC. In the first two months following the introduction of UEC, the number of cards in circulation reached 10,000, with the goal ultimately being for the card to become a universal tool in the banking and payments space, including lending, bank account servicing, utility bills payments, mobile wallet transactions, and payments for commercial as well as state goods and services etc. The card was expected to be universally accepted across all payment terminals, and payment methods included contactless. SmartVista was the ‘central chain link’ in the UEC venture and the deal covered the transaction cycle, from gathering data for card issuing, through to the authorisation and authentication of transactions, and to billing, said Rudich. BPC’s role was much broader than just a technology supplier, he added. It led the project management and acted as the single integrator, managing all sub-contractors and partners. It also assisted with the promotion of the UEC initiative and acted as a consultant to banks and other organisations that wanted to join it. There was a long list of functional and technical he
requirements, added. Unsurprisingly, among major
requirements were the system’s high levels of productivity and scalability: to be able to process 10,000 transactions per second and issue around 150 million cards in one year. Also, the platform had to be able to process huge volumes of data from multiple sources and multiple locations. Module-based architecture and compliance with SOA were key requirements, he said. ‘The card’s applications are not static,’ explained Rudich. This card would remain with a person throughout his or her life, so it had to possess the flexibility to add, delete and modify applications and data stored on it. Maxim Pavlov, COO Russia at BPC, believed that the
vendor’s experience in creating national payment systems certainly contributed to the winning of the UEC contract. SmartVista already underpinned the national payment systems of Turkmenistan, Uzbekistan (Uzkart) and Armenia
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