CBA, signing in December 2013 for SAP software to run its sales and leads operations across retail, corporate and wholesale operations. The front-end piece was won in a separate tender from the core, stated Rieker. Salesforce.com lost out in the final for the contract. Another core taker, Kiwibank, had also taken front-end software. In India, Adarsh Credit Co-operative Society, one of the country’s largest co-op banks, has also been rolling out Omnichannel Digital Platform, starting in 2014 with a few pilot agents and then pushing on with a wider roll- out. ‘We needed to increase our mobility and automation, as there was a lot of manual work, inefficiency and no real- time capabilities,’ stated Rahu Modi, managing director of Adarsh. Although at the time of the selection there were no sites of Sybase 360 in India, Modi commented that the platform had been proven around the world in various developing countries. Himanshu Shah, CTO of Adarsh, said that security and scalability were key requirements, as well as ease of deployment. Modern technology was a must, and there were also price considerations. The Adarsh team particularly liked the breadth of functionality SAP offered and felt it would address both the current and future needs of the bank, Shah noted. Finland-based Mistral Mobile, a mobile software specialist company set up by ex-Nokia management in 2012, had been assisting with the implementation. The first phase of the new solution covered ‘basic banking functionality’, such as deposits, collections and money transfers within the Adarsh member group. The second phase would focus on functionality expansion, such as money transfers to non-members of Adarsh, plus value-added services such as bill payments, mobile phone top-ups and a mobile wallet. On the connectivity side, SAP unveiled the Financial Services Network (FSN) in 2012. Across all software, SAP claimed to have 85 per cent of the Forbes 500 companies as customers. Its plan is to set up a ‘cloud-based network’ between these and the banking sector for payments, based on a small monthly fee for corporates, potentially with some form of transaction-based charges as well. General availability was scheduled for Spring or Summer 2013. The expectation was that FSN would appeal to large corporates as well as small and would provide them with multi-bank connectivity. It would, said Hirst, bring full electronic connectivity, with corporates able to be up and running in four weeks. Banks could add services on top and the plan was that they would take the proposition to their corporate customers. There looked as though there would also be an e-commerce aspect to the plans, potentially through SAP’s acquisition of buyer-seller


collaboration network, Ariba, for $4.3 billion, with this closing in October 2012. There was a roundtable at Swift’s Sibos show in Osaka at the end of October 2012 and notable was the number of major banks lined up behind SAP’s initiative. Bank of America Merrill Lynch, Bank of Tokyo-Mitsubishi (BTM), Citibank, Deutsche Bank, Nordea, RBS and Standard Chartered went public on their intentions to support FSN. More information was given in 2013 about FSN. It went into a ‘controlled launch’ phase on 21st March, with a number of banks involved and end-to-end execution of some test payment messages, said SAP’s solutions manager, Rob Grimes. SAP’s own treasury operation was involved in the tests. While there was technology at both the bank and corporate side, typically SAP’s Bank Communications Management component of its ERP suite at the latter, there was also the network to test, which was not SAP’s traditional domain, and the finalisation of commercial discussions and contract details. The banks involved were all of those from the Sibos launch. In addition, there were 40 to 50 corporates that had shown an interest. The pricing model was to be a fixed fee for banks, with no limit on volumes or number of corporates, and a volume- based fee for corporates. There would be other fees for value- added services. The first focus was ‘bread and butter-type services’ of payments and statements, said Grimes. The ability to build value-added services on top would follow in the first half of 2014. This would be in areas such as supply chain finance, including giving banks visibility of data and cash positions from the ERP systems for services such as purchase order discounting. There were also to be tools for analysis and decision-making, master data management and reconciliation. There would be a development platform and an iPad app.


One year after the launch, the same banks were still talking positively about FSN, although actual progress was hard to spot. By now, financial data integration specialist, Volante, had been selected by SAP to provide the integration layer, supporting validation, mapping, transformation and enrichment of messages (Volante supports proprietary messaging formats as well as a range of industry standards including SEPA, Fedwire, Swift MT, EDI and ISO 20022). The vendor was selected as a result of a competitive tender, said Mick Fennell, Volante’s general manager, MEA. Volante would form a key technology part of the FSN set-up, he said, and would enable banks and corporates to reduce the time and costs of onboarding. SAP’s continued focus on FSN seemed clear from enhancements to SAP Payment Engine R8 to allow the


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