SAP
Walldorf, Germany
Deposits Management, Loans Management » Broad coverage of deposits products (current accounts, savings accounts, fixed term deposits, etc.) » Broad coverage of lending products (mortgage loans, personal loans, corporate loans, etc.) » Tie-up with CSC for Hogan users, offering conversion to SAP’s core » No US takers to date
Deposits Management, Loans Management SAP
SAP is not in the US as yet with its core banking system but it is close (it has several live sites in Canada and one in Mexico) and it also has a small number of US takers for its lending system. As such, it would look to be potentially relevant to mid and upper tier US banks that are casting out their nets wider than the traditional suppliers. SAP has always been in the banking sector at the accounting and ERP level but it has also been in the back office systems space for a fair while. Initially this was with a German-specific lending system but, gradually, that system was made more international and SAP added two broader retail banking offerings. The picture has been somewhat confused, with difficulty arising from trying to see through multiple and often changing branding. However, there is no doubt that this large supplier has become an important player in the back office and it has picked up some notable deals. At SAP’s recent annual event in Orlando in 2015, SAPphire, the vendor announced another record year for its banking and financial services business. This sector is still dwarfed by SAP’s other verticals, but its appetite to grow and take on global and regional software competitors is clearly strong. Over the last year, its core banking system offering, SAP for Banking, has entered new geographies, e.g. India and Saudi Arabia, and also gained takers in the non-banking. There is also a focus on the domestic US market, which Ross Wainwright, global head of financial services at SAP, describes as ‘emerging’. The midtier sector consisting of regional and super-regional banks is the target market for SAP in the US, and the vendor claims it is already in the final stages of around eight system selections.
Deposits Management and
Loans Management: origins At the high volume end, the newer offering is intended to be a complete, customer-oriented, transaction processing solution for retail banking, complemented by a number of other applications. Now called Deposits Management (although SAP sometimes uses a generic ‘SAP for Banking’ brand or variations on this), it was previously called Account Management (AM) and Corebanking. Deutsche Postbank signed in late 1999 as a strategic
partner. At the time, Postbank handled over 21 million accounts and hoped to go live with the new system to support current accounts in 2003, followed by savings and credit accounts in 2004. In the end, migration of the customer master data and current accounts happened in 2003 and lending accounts in 2004, with migration of its 17 million savings accounts completed in October 2005.
110 UBS had also signed as a development partner and would
have brought a more complex set of requirements than those of Postbank, including an international dimension. However, UBS effectively dropped out fairly quickly and all of the emphasis came to be on the Postbank project. SAP had hoped that by October 2002 it would have a version available for large banks, to include the functionality developed at both Postbank and UBS, but this ambitious target was not met. Moreover, when the system came to market, it was relatively narrow and Germanic, which no doubt explained some of the problems that arose when it started to be taken by other banks. SAP already had the older lending system, CML (now
Loans Management), which was originally developed for insurance but, over time, was taken by a number of German banks, followed by banks from elsewhere. This is the system from SAP that has US takers. There has also been a considerable number of corporate takers over the years around the globe.
US Financial Services Technology Market Report |
www.ibsintelligence.com
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