Banks from ICSFS for Iraq. Ziraat Bank signed a notable multi- country deal in 2011 with TCS, plus a deal with regional supplier Colvir, for Central Asia, although the Bancs roll-out did not take off and the bank has instead subsequently started to select more local systems for regional projects. Intertech was chosen for Germany, Asseco for Sarajevo, Bosnia and Herzegovina. Bosnia would have been the first site for Bancs.
In 2013, French supplier, SAB, had its first success in Turkey
and it will be interesting to see if it can succeed where other shave failed. The deal was at Istanbul-based Turkish Trade Bank, which took SAB AT for Islamic finance to replace its home-grown legacy system. SAB has been working with a local partner, Yaz Information Systems. Turkish Trade Bank was established as the country’s first private bank in the 1930s, providing conventional banking activities. The Saving Deposits Insurance Fundof Turkey has been the main shareholder of the bank since 1997, and in May 2013 decided to restructure Turkish Trade Bank as an Islamic bank (or, as it is called in Turkey, a participation bank). SAB AT was provisioned to go live in Q3 2014, which was when the bank planned to re-launch.
No doubt Turkey will continue to interest foreign suppliers,
with its population of around70 million people, a continued strong economy largely unaffected by the global financial crisis (albeit with rising political tensions) and increasing demand for banking services. However, the market continues to be dominated by local development.
Vietnam
Vietnam has seen more core banking system replacement projects than most other countries around the globe in the last six or seven years. Drivers have been a booming economy and the arrival of foreign banks as strategic partners of some of the domestic players. In common with elsewhere, the results of the projects have been mixed.
The top four banks have nearly half of the assets and 60 per
cent of loans. The next eleven banks have another36 per cent of assets. Overseas banks are among seven foreign strategic investors that have so far bought into about ten Vietnamese banks – half of them listed – among the nearly40 in the country, according to Thomson Reuters data. Foreign banks with stakes in Vietnamese ones include HSBC, in Techcom bank, CBA in Vietnam International Bank (VIB), and UOB in Phuong Nam.
Until February 2014, the maximum stake that a foreign company could take in a Vietnamese bank was 30 per cent but the government has relaxed this of late for ‘weak’ banks, of which it said there were eleven, albeit with eight of these having been ‘restructured’. This was in part a response by the country’s Communist government to a high level of bad debt, resulting
from a stagnant economy for the last five years or so after strong growth. The sector has also been beset by accusations of corruption and arrests. Part- privatisation of state-owned banks is also on the cards.
Therewerealsotwodealsin2011forPolaris’ core system,
building on wins in 2008and2009atMekong Housing Bank and Saigon Hanoi Bank, and one for T24, at Mekong Development Bank. The latter bank was influenced by the arrival of a foreign strategic partner, Singapore- based Fullerton Financial Holdings. ‘This saw a strategic shift towards modernisation and becoming a strong player in Vietnam,’ said the bank’s CEO, Tay Han Chong. The project appeared to be one of the more successful in the country, with the bank live some what ahead of a number of its counterparts that had started earlier. One of Polaris’ 2011 wins was Vietnam Bank for Social Policies, with the roll-out nearing completion in late 2014, to support the bank’s 692 branch network and 16 million accounts.
2012 was appreciably quieter, with a fair few banks mid-
project. The selection that looked the broadest in scope was for FIS’s Profile, from Vietinbank. There was a win for3i Infotech for its Kastle Universal Lending system from Bank for Investment and Development of Vietnam and for Temenos from specialist domestic player, EVN Finance. The other deals were treasury in nature and went to Misys with Kondor+ (two wins) and Murex (one).
One of the less predictable deals (and the only one in a much
quieter 2013) came early in the year and saw Russian core banking vendor, Diasoft, gain its first site in South East Asia for its Flextera system. This was at VIB, which started by deploying the payments management module in a project spanning three months, followed by additional modules, including lending. VIB, with over 150 domestic branches, was a long-standing user of Sungard’s Ambit core banking system, but had been transforming its business and technology since the arrival of CBA as a strategic shareholder in 2010.
2014 was busy again and the main winner was Temenos,
taking four core banking deals, including at the country’s central bank, State Bank of Vietnam, and National Citizen Bank (NCB). State Bank is planning a broad modernisation project dubbed ‘Financial Sector Modernisation and Information Management System Project’, under the auspices of the World Bank. Local integrator, FPT Information System, won the deal to supply, implement and integrate the core banking, accounting and budgeting software. The contract is understood to be worth $8.84 million. Polaris and the incumbent vendor, South Korea-based Hyundai Information Technology were also evaluated at the shortlist stage.
Temenos’ deal at NCB also involved FPT. NCB was Market Dynamics Report 2017 |
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