a clear run at the project, he said the implementation, which involved both bank and vendor, was ‘very quick’, benefiting greatly from real teamwork. More good news came in September 2006 with a second win in China, when Bank of East Asia (BOE) selected Symbols for its core operations. The bank, with 14 branches, had made inroads into the country from its Hong Kong base. The deal was won by the US$6.7 million joint venture, Digital China System Access (DCSA). This was set up in July 2005 by Digital China and System Access (55:45), as a result of their work together at CDB, to target smaller domestic commercial banks wanting to redevelop their core systems. The BOE project was expected to require considerable customisation – DCSA CEO, Avy Lim, estimated 20 to 30 per cent of the final solution – partly due to the need to support not only Chinese banking regulations but also those of Hong Kong. While a fair amount of work had been done to Symbols for CDB, this was a wholesale banking project, unlike the strongly retail nature of BOE’s business. As well as


generic customisation and interfaces, enhancements


were needed to support BOE’s ‘All-in-One’ account. BOE had the largest presence of any ‘foreign’ bank in China and was understood to be planning an expansion of its branch network. System Access’ cause was helped by the joint venture, which had the ability to present a solution that was backed by local staff (85 in 2006, 50 of these based in a development centre in Sian), with this allowing DCSA to offer commercial terms that were not far removed from those of local competitors. The other supplier considered at the shortlist stage was local Hi Sun Technology. When competing with most non-Chinese vendors, DCSA had


the advantage of a live site in the country, even if the project at CDB encountered a fair few issues and delays along the way. At around the same time as the BOE sale, DCSA also took


over direct support for Symbols at CDB. There was still a small team on site at the bank, resolving issues and preparing for the next phases of the project. During the implementation project itself, Digital China’s role was mainly that of systems integrator. Meanwhile, over in western Europe, the long-running


core systems deliberations at Erste Bank produced a decision of sorts in October 2006. Erste had been evaluating other options besides Symbols, including looking at third party systems (including those of I-flex, Temenos, SAP and Infosys) as well as the other incumbent in-house solutions. Although there were different opinions and power bases, the central decision was taken to press on with the roll-out of Symbols, with extensions for each country operation to cover the gaps, and with a branch and channel delivery solution from Italian company, Finantix. The latter was in preference to a number of third party offerings (including that of System Access and a Hungarian solution) or an in-house build route. The first country operation to implement the new


configuration was to be Slovakia (Slovenska Sporitelna, as was), with completion scheduled for the end of 2008, in time for the country’s expected entry into the euro-zone. The in- house system being replaced was called BIS, which had the same roots as the Starbank core system in Ceska Sporitelna. Ultimately, the Symbols/Extensions and Finantix combination was intended to be applied to the large Czech retail business but this would be a gradual evolution.


Another change of ownership – Sungard


At a corporate level, the big news in the second half of 2006 was that Sungard had made a conditional bid for System Access. This was based on gaining not less than 90 per cent of the shares, would see Loh and the rest of the management team retained and the company valued at S$120 million. The cash offer represented a 20 per cent premium over the last transacted share price of S$0.30 on 21st July. By early October 2006, Sungard had received acceptances in respect of approximately 99.54 per cent of System Access’ shares, effectively finalising the deal. In March 2007, Sungard reported a revenue figure of US$4.32 billion for the year ending 31st December 2006, which represented a seven per cent rise. During the year, Sungard invested US$312 million in capital expenditures and US$163 million in nine other acquisitions as well as System Access.


478 System Access was known to have attracted suitors before


and after its listing on Sesdaq, but it had only been in the six months prior to Sungard’s bid that it had been in a position to seriously respond to such interest, said Loh. He said there were discussions with a number of parties after the IPO and, while declining to give names, it was understood that US retail banking systems supplier, Open Solutions, was interested. This company had ambitious plans to expand outside of North America, with acquisitions seen as one route. Sungard itself had delisted in 2005 with the arrival of seven private equity investors. This relieved the burden of quarterly reporting, said Asia Pacific president, John Wilson, and allowed the company to ‘step back and look at the longer term objectives’. The investors believed the company was under-


Universal Banking Systems Market Report | www.ibsintelligence.com


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