environment to an outsourced basis would also increase efficiency and reduce costs, she added. Other requirements included how easy the vendor was going to be to work with, how flexible the vendor and software were, whether it ‘stood on the cutting edge of technology’ and how difficult or easy the conversion process was going to be, said Troutman. The contract was signed in June 2012 and the project started in January 2013. Around the globe, where contracts are on a term basis, this can be a moment for banks to look to replace. This was the spur, for instance, for Kearny Federal Savings Bank (KFSB) evaluating the market (it opted for the Premier core offering from Fiserv) as the contract for its legacy system, BankNet, from Financial Services Inc (FSI), was due to expire in February 2014. EVP and COO, Bill Ledgerwood, said the bank had
‘outgrown’ its legacy system and there was a primary concern that FSI’s ‘man-power was stretched pretty thin, as there just wasn’t enough people’. The New Jersey-based bank had $3.1 billion in assets, 450
staff and 41 domestic branches at the time of the selection. Its final choice came down to staying with the incumbent supplier and convert to a newer platform (FIS’s BankWay, which FSI had offered in its service bureau environment since 1993), or look at two alternative vendors that were felt to best fit the bank’s needs – Fiserv with Premier and FIS with IBS. Ledgerwood concluded: ‘We will move into the 21st century from an operational perspective as we will cut down a lot of the paperwork. Premier will enable us to move ahead in the industry and bring new channels into the spotlight.’
A broader product range
The ability to offer a wider product set was an influence for Investors Bank to replace its legacy core system, TotalPlus from Open Solutions (now owned by Fiserv). It opted instead for Fiserv’s Signature, rolled out across its 100 retail branches over around 19 months from mid-2013. New Jersey-based Investors Bank, with $12.8 billion in assets, had outgrown its legacy platform. According to the bank’s senior vice-president, operations and IT, Daniel Harris, the old system ‘supported our services when we were a smaller institution, but because of our growth we needed a new core’. The Investors Bank’s team looked at several aspects
before making its decision, including workflow improvements, integration, financial stability of the supplier, and a partner which ‘not only could provide services as an application service provider, but also that would allow us to have some level of customisation in the process’, noted Harris. Investors Bank intended to use the feature functionality of Signature to broaden its commercial product offering. Harris felt the bank would have ‘the same technology as the top ten FIs in the market’. He said: ‘The out-of-the-box capabilities, as well as the ability to customise for our requirements, will enable us to offer unique products to the market.’ Product expansion was certainly a key goal for Barclays
US. The Delaware-based subsidiary of the multinational retail bank had operated under the Barclaycard brand since the acquisition of credit card issuer, Juniper Financial Corporation, in 2004, primarily offering credit card services. It then began the process of sourcing new revenue by accepting broker deposits. The success of this raised the possibility for online retail and consumer deposits, an idea that was formally given the go-ahead in mid-2011.
16 US Financial Services Technology Market Report |
www.ibsintelligence.com
‘It was brand new, the system we housed here in the
US infrastructure didn’t accommodate deposit products,’ explained Andrew Harris, director of deposit products at Barclays US. It chose an outsource model based on a number of factors. First, it wanted to ‘create a simplification for ourselves, in terms of the management, the execution and the ongoing development of the business’, said Harris. Second, he explained that Barclays US lacked the technical expertise in terms of deposit products, so the management was mindful of meeting the expectations of the Barclays group. ‘With the level of excellence Barclays is associated with, you need to execute on day one,’ he said. Barclays US signed the contract with FIS for its Profile system in December 2011 and the roll-out was completed by the end of May the following year.
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