Bank, Siam Commercial, Kasikorn bank and Bank of Ayudhya. Foreign banks have only a limited presence, accounting for only around ten percent of the country’s assets. As elsewhere, Malaysia-based CIMB has arrived in the market, buying struggling Bank Thai in 2009 (it used a local system, Safe, but has been standardising across its operations on Silverlake’s SIBS). The likes of ANZ, Citibank and Standard Chartered are also active. The rebuild that was needed after the severe economic crisis in 1997 took a long while but there has been stability and growth, with the sector proving fairly resilient of late. While economic growth has slowed, the ratings agencies have maintained their stable rating for the sector.
Bangkok Bank has a heavy reliance on packages, at home
and abroad. At its heart, it has FIS’s mainframe-based Systematics (as has Bank of Ayudhya), with Fiserv also in the mix, including for mobile banking. Krung Thai Bank has been a user of FIS’s Profile since 2004. Siam Commercial Bank(SCB) is under going an extensive modernisation project, dubbed Change Programme, which has seen the selection of new systems for trade finance and payments and is meant to include some form of overhaul of its core banking platform. Kasikorn bank (Kbank), along with Bank Thai, tried to implement Temenos’ high-endretail banking In 2015 , Halk bank awarded Intellect Design a contract for Intellect Lending system. In 2016, FIS scored an off the record deal for its Integrity treasury system.
An interesting earlier deal, in 2006, that is worth flagging
was for Silverlake, at start-up, Islamic Bank of Thailand. Silverlake was also heavily involved in the integration project stemming from the merger of Than chart Bank and Siam City Bank.
Turkey
Turkey has traditionally been viewed as a market with potential, but it has failed to live up to this to date, in part due to the traditional heavy in-houseslant of the banks and some less than successful early projects where banks opted for non-domestic systems.
Turkey produced no deals for international suppliers in
2011 and 2012, despite being one of the better economies around the world. There had been only one deal in 2010, at T- Bank, which opted for Finacle. Infosys was believed to have beaten Temenos to the deal in mid-year. T-Bankwas a relatively small player in the Turkish market, with 25 branches at the time of signing, spanning corporate, SME and retail banking. Infosys had also won the stand-out deal in 2009, at Akbank, but the implementation was not successful. Akbank eventually reverted to its home-grown core system after several senior management changes, including on the IT side. The key to success at T-Bank was apparently a localisation layer which
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incorporated business practices and reporting requirements. A big bang go-live happened in May 2013.
The other large Turkish bank to set off on a package software
route was Isbank in 2007, with FIS’s Corebank, although the resultant project came to a halt in 2011. The bank appointed a new CIO and reverted to its existing solutions, plus some salvaged Corebank components, and set out to build a SOA- based structure, with the in-house system at the core and various auxiliary applications around it.
Major banks here have large captive IT subsidiaries with
hundreds of people on the payroll. Garanti Bank, which operates Garanti Technology and Garanti Payment Systems, is fairly typical. Garanti Technology built a fully-fledged core system – GT Banking Solution – for its parent, which is used domestically and also for some international business lines. It was developed in the late 1990s and is mainframe-based. There were plans a few years ago to package the system and market it outside Turkey but this has not materialised to date.
Finans bank also has an IT offshoot, IBTech, the developer of
the Core Finance back office system. Core Finance has been used by Finans bank domestically for over a decade, and for around six years in its Russian subsidiary. In 2007, IB Tech received a patent for the system and seemed to be moving towards marketing the system to other banks, but no signings are known to date.
The bank that has made a success of selling its in- house
systemis Denizbank, via its Intertech subsidiary, with its Microsoft-based system now branded as Inter-face (previously Inter-next). Denizbank, which is now owned by Sberbank, has the system domestically and at a number of sites abroad (e.g. Austria). Intertech has also picked up contracts at home over the last few years (in 2013, for instance, it was chosen by Al Baraka Turk Participation Bank, a subsidiary of Bahrain-basedAl Baraka Group, and Bank of Tokyo Mitsubishi UFJ, which was upgrading its representative office in Istanbul to a full bank subsidiary). Intertech added Rabobank in Turkey in 2014 and also took additional steps in moving beyond the country’s borders. There is also Winbank, a core banking offering from Istanbul- based vendor, BIS, but it mainly caters for commercial, corporate and investment banking operations, rather than for retail finance. Turkey-based units of Deutsche Bank andJP Morgan are among Winbank users.
There has been the odd treasury selection (Akbank had
taken Misys’ Summit in 2008, for instance); there was a deal for Murex in 2013. All in all, the Turkish market– which comprises 54 banks – continues to be dominated by local development and in-house written software. However, Turkish banks do take international systems for non- domestic operations from time to time. In 2011, Al Baraka Turk Participation Bank selected
Market Dynamics Report 2017 |
www.ibsintelligence.com
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