Chartered described it as its most difficult country, in August2013, announcing a $1 billion write- downand complaining of ‘multiple policy and regulatory interventions’. Goldman Sachs pulled out of the country in2012 and Citibank has been closing branches.
Overall, the ratings agencies view the country as stable Also on the private banking side, ERI was selected by Axis
Bank in 2008, and Sage SA’s Prospero was chosen by CIMB-GK Securities in 2011, with another deal in 2012 and then UOB Kay Hian in 2014.
For treasury, 2011 saw selections of Misys’ Opics (Bank of
East Asia) and Sungard’s Sierra/Ambit Treasury. Prior to this, FSS’s Spectrum (now part of Wall Street Systems) was chosen at Bank of Singapore in 2010 (the US supplier had also won single deals in Singapore in 2009 and 2008). Murex had a win in 2013.
In terms of activity in the large banks, the most notable
episode was DBS’s attempts to implement Infosys’ Finacle. DBS became embroiled in an implementation of Finacle in2005, to replace FIS’s Systematics in Hong Kong and an old in-house system in Singapore. This did not go well (there was a write-off of $29 million by the bank in Q4 2008 on an un-named ‘technology project’, although some parts of the Finacle project have continued, as part of what is now a phased replacement of the legacy core). The bank had more success with Avaloq for Hong Kong, with the system then applied to Singapore as well.
UOB and OCBC have largely in-housesystemsand, unusually, the latter used these when it launched its offshoot, Frank, aimed at‘Gen-Y’ (most such start-ups around the globe are launched on separate systems). OCBC does have CBA’s IBAS for payments and Misys’ Midas, in Singapore and elsewhere. Though a banking market , there were limited deals in 2015 , 1 was for treasury management system and other for CBS. Oracle FSS won the CBS , while FIS got 1 deal for treasury management system. The market continued to be quiet with only off the record deal for Finacle recorded during the year.
South Korea
Alongside the well-established local banks, most of which were formed through mergers in the late 1990s (including Woori, Kookmin, Shinhan Hana), the main foreign operators in South Korea, Standard Chartered, Citibank and HSBC, have found things far from easy, particularly on the retail side. Standard
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based on the assumption that its economy will continue to expand. However, there has been some turmoil among the smaller banks. In May 2012, the Korean Financial Services Commission imposed six-month suspensions on the operations of four banks, Solomon Savings Bank, Korea Savings Bank, Mirae Savings Bank and Hanju Savings Bank, as part of an investigation into the country’s secondary financial institutions. The savings banks were suspended after it was discovered that they had a Bank of International Settlements (BIS) ratio under five per cent; there were also accusations of corruption. Busan Savings Bank had been suspended the previous year. In total, the government suspended 20 of the country’s 105 savings banks.
Most of the systems activity in South Korea has been
centred on treasury and capital markets systems. Misys’ Sophis-derived Risque had a spate of deals, with Calypso also picking up a few and continued its sales win in 2015 although with a solitary win. In 2009, alongside one of those Risque wins (at Standard Chartered), there was success for Murex, building on other sites in the country.
One other deal with a South Korea twist was Path Solutions’
iMAL win at FEE Bank in 2009, which was for a new operation in Malaysia and an established one in South Korea. The bank was a subsidiary of Bank Mellat and this was Path’s first success with an Iranian bank. However, as stated in the Malaysian entry, the assets of the bank were subsequently frozen.
All but one other deal in the country in the previous four
years had been for treasury, the exception coming in 2008 at Kookmin Bank, as it set off on a major overhaul, taking TCS’s Bancs as the basis for this, working with IBM, and with the intention of building its own solution on top of this platform. On the whole, for core banking, the South Korean sector has been reliant on domestic and/or in-house developed systems, with Hyundai Information Technology and its Kore-Bank system, among these. There were no wins in 2013 or 2014.While 2015 recorded two deals, 2016 again did not see any new wins in the country.
Taiwan
This relatively busy and competitive (some would argue, over- crowded) banking market has seen modest but steady system replacement activity over the years. Political uncertainty has been an issue, so too some of the narrowest margins in Asia but
Market Dynamics Report 2017 |
www.ibsintelligence.com
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