Building Society in the UK; and a clutch of wins in Canada. The first of those Canadian successes was for Loans Management from Farm Credit Canada (FCC) in 2006. FCC is a provider of financial services to farming and related operations in rural Canada. The system was taken to manage all loan contracts, from family farm loans to commercial partner-based loans. The first milestone at FCC was reached in April 2008, when
its US loans portfolio went live on Loans Management. There was a slight delay with the next phase, caused by signing a new partnership with Cargill, a major US agricultural commodities corporation. FCC wanted to bring Cargill onto the new platform, so extra time was required for this. Cargill’s loans were incorporated onto the system by February 2009. In February 2010, the bank completed its largest conversion, moving its crop input loans. It would take another year and a half to move the remaining portfolio to the new system, said the bank, and this was in line with the original timeframes and budget. ATB Financial then signed in the first half of 2008, for a
broad roll-out of solutions over the next couple of years. It was the first such decision by one of the larger Canadian banks. The transformation project was to cover all of ATB’s operations and was to see SAP’s banking suite tailored for the local market. SAP beat off all the main core system suppliers, including Infosys at the shortlist. There was also a payments aspect to this project, with SAP’s Payments Engine to be installed particularly for cross-border payments. In early 2010, ATB admitted that it had underestimated the scale of its project and was a year behind schedule. The initial budget was $157 million. In 2010 it reviewed the project. Key steps in this process, according to the bank, included ‘formally locking down the project scope, reviewing and amending the project plan and schedule for completion, and reviewing and significantly strengthening the project management structure and reporting process’. It did remain, however, ‘fully committed to this transformation’. According to ATB figures in the latter half of 2011, cumulative spending on the project to 31st December had reached $286.4 million ($109.4 million in 2010). The intention was to complete the project by 2012, with an additional spend of $43.6 million. The third Canadian taker, signed in late 2008, was Toronto- based Home Trust Company, again aiming to revamp its entire systems infrastructure. The main system to be replaced stemmed from domestic supplier, Strategic Information Technology (SIT). Phase one of the project would focus on finance and treasury, partly in light of the need to comply with impending IFRS regulations, plus Home Trust’s core retail business. Home Trust provides deposits, mortgages and credit cards via a network of brokers across the country. A second phase would cover other business lines, merchant services, and areas such as human resources and payroll, plus loan origination and collections. The initial go-live date at Home Trust was postponed
after extensive testing in the autumn of 2009. Home Trust wanted to ‘re-evaluate and redefine the processes’, to assess the turnaround times, efficiencies and the scope of the undertaking, said president, Martin Reid. As a result, the scope of the project was expanded to include SAP for Banking interfaces for the mortgage and deposit brokers, and
interfaces to the banks that Home Trust cleared with. These were crucial components for achieving desired efficiencies, said Reid, as a lot of Home Trust’s business came from the mortgage and deposit broking community. Data from these companies was previously received and keyed in manually by Home Trust staff. The go-live date was pushed back to 2011, and eventually happened in July that year. After the go- live Home Trust declared itself ‘pleased with the additional functionality, expanded capacity and improved efficiencies the new platform provides’.
TD Bank in Canada also signed for Deposits Management, in 2010, although this was not publicly announced by SAP. It is believed that this project has gone relatively smoothly. Elsewhere, there has been a major transformation project at Commonwealth Bank of Australia (CBA), which started in 2008 with an initial anticipated cost of AU$580 million. There was then a doubling of the initial estimate and the extension of the project by nearly a year. Reasons cited by the bank included extension of the SAP suite to CBA’s subsidiaries, ASB Bank and Bankwest; enterprise-wide branch rejuvenation; rising expenses on software maintenance and development; and the lack of skilled resources. The project was finally completed in H1 2013.
In 2009, there was a deal with Deutsche Bank, to overhaul its domestic operations. The aim was to standardise the software as much as possible for payments, savings applications, account management and in-house management operations, said a spokesperson from the bank. It was thought that Deutsche Bank’s acquisition of Deutsche Postbank in 2010 influenced the new parent’s decision. Among takers in 2010 was a first microfinance institution, Compartamos Banco in Mexico, selecting SAP after having abandoned an earlier project to implement Temenos’ T24. From SAP it took Loans Management plus BPM and CRM software. SAP talked of the importance of Compartamos as a reference in helping win new business in Latin America. By late 2012, it was mid-project and running late. However, a smaller, earlier taker of Loans Management in the country, Montepio, was live by this time. By 2011, SAP was making less noise about its wins than in the past, perhaps because of the experiences of some of those takers. Nonetheless, it was a relatively successful year in terms of sales for Deposits Management as it more than doubled its sales tally of the previous year, gaining seven new-name wins including a handful in Latin America, Landshypotek in Sweden and RBS in the UK. Little information was provided on the latter deal although it was known that the project would focus on implementing a deposit liquidity engine for the corporate banking part of RBS. However, while the fortunes of Deposits Management picked up, the supplier gained only three wins for Loans Management, versus eight in 2010. Geographically, Latin America certainly seemed to be
the success story of 2011 for SAP. Of SAP’s ten deals across its different banking applications in the year, six were here: two in Brazil (Banco Intermedium and Banco Regional de Desenvolvimento), two in Costa Rica (one of which was Banco Cathay de Costa Rica), one in Colombia and another in Mexico. This compared with three Latin America deals for SAP in 2010, out of a total of eleven.
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