This had been involved in the development for around three years. By the time of the launch, UBank had around 300,000 customers and, Goyal said, was ‘100 per cent on OBP’. ‘NAB has laid the foundation for the rest of the bank.’ It had mostly in-house systems and had plans to bring its core domestic business onto the new platform. This was why it took OBP for UBank, rather than Flexcube. UBank was not running on any Flexcube components, he stated. Within NAB itself, OBP is intended to be implemented for its domestic business. Business customers of NAB are intended to go live on the platform in 2016. Oracle has described the overall project at NAB as ‘the most transformational project currently being undertaken in banking, in any market’. NAB had apparently spent around AU$800 million on the project in the three years to the start of 2014. The first apparent deliverable was the launch of the Usaver


Ultra product, a combined current and savings account which has an automated online application process. This took place in mid-2013. NAB Trade, a share trading product, was also launched on OBP, and saw existing share trading customers of NAB migrated. In parallel, NAB was rolling out MX.3 from Murex for foreign exchange and Misys’ Trade Innovation for its trade finance operations.


NAB, as with other Australian banks, is in something of a catch-up mode, as Commonwealth Bank of Australia (CBA) had been at this for considerably longer, centred on SAP’s core banking system. CBA finally gained breakthroughs in 2013 and 2014, after considerable pain and expense. ANZ had largely been focusing on Infosys’ Finacle, although the emphasis here has been on the bank’s international operations, to date, not seemingly its domestic heartland. Conversely, Westpac, a user of the mainframe-based Hogan system from CSC, decided to upgrade the solution with CSC’s Celeriti offering (a sort of wrapper for Hogan). This decision was initially taken in 2010, a couple of years after Westpac acquired St George Bank, another Hogan user. Westpac and St George were still on separate systems but a project started to first move St George to Celeriti and then


Keybank


Making the messages about OBP arguably more confusing, rather than less, there was in September 2014 the announcement that OBP had been taken by Cleveland, Ohio-based Keybank. This deal was described by Oracle at the outset as for online and mobile loan origination, rather than for core banking, using ‘components of OBP’. No one from the bank was available to comment at that time. The loan origination component is touted by Oracle as an OBP element which can reside with any bank office system. Keybank went public on its project in April 2015. The bank is the 15th largest in the US. It has $92 billion in assets, $67 billion of deposits, a network of 1300 ATMs and 1000 full service branches across twelve US states, and over two million customers. It employs 14,000 people.


322


Here, OBP acts as ‘an orchestration layer’, said Ryan Lysaght Gorney, the bank’s SVP and head of digital channel technology. It facilitates the ‘continuous digital journey’ the bank had embarked on. The bank’s focus was on middle and front office technology. It was happy with its existing core banking system, provided by a domestic vendor, and there were no plans to change it, Gorney said. ‘Our core banking system is rock solid.’ Gorney described Keybank as ‘a relationship-based bank’, with digital services and physical branches being ‘pieces of one puzzle that work together to bring the full customer experience’. Keybank had ‘traditionally been an early adopter of digital capabilities’, he continued. ‘In the early 1990s we were one of the first regional banks to introduce internet banking.


Universal Banking Systems Market Report | www.ibsintelligence.com


migrate Westpac. There have been mixed messages about this project, however, with the bank only committing to it in late 2013, a few years after first mooting it. For its part, Suncorp was looking at replacing a heavily customised version of Hogan. It had completed a first phase centred on providing a new CRM system for all business users (using what was Siebel) and had started on phase two, which would be OBP to replace Hogan. The bank’s project was touted as a ‘bank simplification programme’. There were no other customers at that stage but there was a strong pipeline, said Goyal. Initial focus had been Australasia and North America and Oracle was ‘seeing traction’. Wipro and Thoughtworks were working alongside Oracle on the project.


Suncorp’s transformation (‘Project Ignite’) is touted at


AU$27 million and is scheduled for completion by July 2016. As well as Hogan, there is a range of other applications due to be replaced. Speaking on an investor call in May 2014, the bank’s CEO, John Nesbitt, said, ‘in two years, we’ll have a new bank’. A ‘highly configurable core’ would allow Suncorp to quickly deliver products with little IT intervention. The first focus was on origination of unsecured loans, to be followed by home loans, deposits, payments and business loans. Around one year later, in April 2015, Suncorp announced in its end of year results statement that it had passed a milestone in Project Ignite with a first stage ‘successfully implemented’. This had seen personal loans transitioned onto OBP. ‘An important component of this project is the removal of reliance on older technology platforms that are cumbersome to maintain,’ the bank stated Project Ignite includes decommissioning twelve legacy systems at Suncorp, redesigning 580 business processes and rationalising 50 per cent of the product set. The bank is emphasising the enterprise-wide nature of its transformation, with a lot of work already done for its large insurance operations and with other phases including areas such as cards (where the bank planned to replace CSC’s CAMS system) and business intelligence.


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