makes it the largest banking migration in Australian history.’ By Q3 2012, SAP claimed CBA was also live with account opening. It was claimed that CBA completed its deployment of SAP for Banking in mid-2013, winding up the six-year process that had encompassed AU$1 billion, two subsidiaries (ASB Bank and Bankwest) and 20 million accounts and 1000 branches at the main bank. 1500 CBA staff were stood down, to focus on other projects. Additional sales success in Australasia in 2013 (see below) seemed to back up the claims. Perhaps significantly, a number of senior CBA managers


have left to join other tier one banks, including RBS and Barclays in the UK, since the conclusion of the project. No doubt SAP is hopeful that this could open the door for other such transformation projects. Over in Canada, ATB Financial signed a deal with SAP which was meant to see an even broader roll-out of solutions over a couple of years, although the bank was somewhat smaller than the Australian heavyweight. It was another highly notable deal as it represented the first such decision by one of the larger Canadian banks, albeit with other banks in the country known to be in different stages of analysis and selection. ATB had spent eight to ten years scanning the market, with this ‘pretty serious’ in the last five years, said SVP, major initiatives, Ken Casey. The actual project commenced around two years earlier. The bank had a Cobol-based legacy system at its heart, which was a package at the outset and was then taken in-house by the bank. Increasingly, the bank was at a ‘competitive disadvantage’ in its product suite. It might have added some packages around the core but this was felt to be expensive and would have involved adding a lot more technology and potential points of failure. Flexibility was felt to be ever more important in an


increasingly competitive Canadian market. ATB is a regional institution (it is based in Edmonton, Alberta) and competes with the five large domestic banks, the credit unions, ‘mono- lines’ and foreign banks, said Casey. As with all regional banks, ATB would argue that its value proposition has to be its agility, aligned with knowledge of the local market, he said. Having the knowledge alone is not sufficient if you cannot move quickly to match this with products. The bank had 4800 employees and more than 660,000 personal and business customers, with activities spanning retail banking, corporate banking, wealth management and mortgages. After an RFI stage, five vendors made the next cut, comprising I-flex, Infosys, Temenos, TCS and SAP. All of the systems looked to cover a large part of the bank’s requirements but none covered everything, said Casey. The changes would include not only customisation for the North


American market but also a second level of customisation for the Canadian market. On the product side, ‘home equity line of credit’ products are prevalent in North America and he also expected there to be enhancements needed for ATB’s flexible mortgages, including cash-back mortgages, and CDs. Third and fourth filtering stages brought a shortlist of Infosys and SAP. ATB was reassured that some other banks had honed in on the same two systems, particularly CBA, he said. ATB spent time on Infosys’ campus in Bangalore and SAP’s HQ in Walldorf. It was important to get to know the suppliers as well as their systems, he felt. For the former supplier, it visited DBS in Singapore and ICICI Bank; for SAP, it spent time talking to the likes of Deutsche Postbank, Standard Bank and Kaupthing (the latter, an Icelandic bank, had been rolling out multiple SAP components, although had Deposits, alongside Loans Management, not Deposits Management). In total, the selection at ATB took around 18 months. It was


felt that SAP’s suite covered more of the bank’s requirements within the existing functionality. ATB was also comfortable that SAP could deliver on the parts that were not too mature, said Casey. The supplier’s technology stack was also important, and the bank had been following SAP’s Netweaver and SOA strategy. While this was specifically a core banking system selection, there was also the possibility with SAP of integration with some ERP components where this might make sense in the future. The first scope of the project was about replacing what the bank had at present and ensuring that it could do this safely and securely, said Casey, before building additional functionality. As such, it took the core deposits and lending pieces of the SAP for Banking suite. Also within the long- term plan were parts of the ERP suite, particularly the general ledger. It also planned to take Bank Analyzer for some reporting requirements and was keen on the Basel II capabilities of this, even though the bank did not have to comply, at least at present.


Also within the plans were adoption of SAP’s payment capabilities, with this described by Casey as ‘a critical requirement’. Indeed, ATB was the first taker for payments outside of Postbank. As SAP’s solution had been built for the European market, this was another area where there would be a need for localisation. In terms of localisation in general, what Casey described as ‘some extremely good work’, had been going on at Farm Credit Canada (FCC), which was installing Loans Management, and this could help for this piece of the wider ATB project. A large part of what was being sought was transformation,


said Casey. The software would be used to support the current products and the configuration would be used to create new ones. He felt workflow was tightly tied to the products within


Universal Banking Systems Market Report | www.ibsintelligence.com 389


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