in the country, as projects at two smaller banks, Ready Bank and Baader Bank, were cancelled. No one from either bank nor Temenos was willing to comment. The supplier had been its usual bullish self on the signings. Both leads were inherited when it bought Actis and were turned into T24 contracts in a relatively short time. It meant revenue from the Actis takeover exceeded initial targets and the projects were intended to see T24 tailored for the German market. A possible mitigating factor at Ready Bank was uncertainty about its future, through a repositioning by its parent, WestLB. Under pressure to relinquish Ready Bank, it was believed that it might be focused instead on a services partner role for German savings banks. However, a source close to the project alleged delivery problems with the German version of T24, exacerbated by the need to incorporate complex German withholding tax rules that were scheduled for early 2009. A lack of German documentation and changes in project manager were also cited as causes. Ready Bank’s business was fairly standard whereas the


problem at Baader Bank seemed to be the heavy securities- orientation of the bank. It was likely to have been a prospect for Actis’ BSP Trade securities system rather than Paba/Q. Despite the situation, Temenos had gained two more


German recruits by September 2008, Honda Bank and Europäisch-Iranische


Handelsbank (EIH). The Ready


Bank and Baader Bank problems had apparently caused discussions at the pre-contract stage but both duly signed. Honda Bank, aided by a number of consultants, selected T24 ahead of I-flex Solutions and Fidelity’s Kordoba subsidiary, offering Flexcube and K-Core24 respectively. It was understood that Temenos, drawing on Actis resources, promised a complete German language team. The bank already had Misys’ Equation for deposits. T24 was taken for credits and might be extended in the next few years for leasing, although this would require a fair amount of development. It was understood that Honda Bank talked to both Ready Bank and Baader Bank before signing and had also identified the Temenos resources that it wanted to work on its project. At Hamburg-based EIH, a senior manager confirmed the selection but declined to comment beyond this. Once more, the projects did not go to plan (see below). Temenos finally had success with an actual Actis.BSP


client in Germany four years after the acquisition. This was Maple Bank, a small European investment and wholesale banking subsidiary of Canada-based Maple Financial Group. The project started in September 2011, with a big bang go- live expected in October 2012 (to coincide with the bank’s fiscal year cycle). The deal was won against German vendor, Die Software Peter Fitzon, with its OBS core offering. The


Kordoba system and Flexcube (now with Oracle FSS) were also evaluated at an earlier stage. Germany would be the main hub for the T24 deployment at Maple Bank, but the agreement also foresaw potential to extend the coverage to Canada, the US and the UK. The system would be hosted at Temenos’ local data centre (as is Paba/Q) and would cover the bank’s front- to-back office operations. A second Paba/Q user was expected to commit to T24


imminently, said Kay Luhle, head of core banking projects in Germany, Austria, Switzerland and Italy at Temenos. This was one of a number of delayed contracts mentioned by CEO, Guy Dubois, during Temenos’ Q2 results conference call in the summer 2011. Support for Paba/Q would cease in 2013, said Luhle. He emphasised that Temenos had invested a lot in developing T24 German Banking System (GBS) and had 100+ Germany- based resources to cater for the local market (plus Austria and the German-speaking part of Switzerland). By December 2010, the T24 GBS ‘base package’ was supposedly ready, enhanced by the addition of wholesale banking functionality in April 2011 and trade finance in August. Corporate banking followed in October, with the addition of consumer credits set for April and retail banking for October 2012. T24 GBS is targeted at Germany’s mid-tier banking sector, which comprises 300 banks. It is touted as an integrated package that includes the Insight business intelligence tools and (at this time) the ARC front-end/channel banking functionality, thus covering front-to-back office operations. The system is meant to comply with local accounting and tax standards, and is integrated with a statutory reporting solution from a German specialist company (a similar arrangement with Paba/Q had been in place for many years, ‘so there was no point in reinventing the wheel’, noted Luhle). The presence of local resources was also very important for German banks, he added. ‘The German market is very conservative when it comes to giving international vendors a chance.’ The first live user of T24 GBS was the local subsidiary of


Banque Chaabi Du Maroc, which started running the system in September 2011. The bank took T24 as a replacement of Viveo’s V.bank core system, which it had selected in 2008. EIH and Honda Bank were apparently still implementing at this time, so had experienced extremely long projects, particularly given the size of the banks. As stated, these deals dated back to 2008. In late 2009, EIH apparently went live with the customer module. At Honda Bank, the roll-out of T24 had been due in October 2009, according to the vendor’s initial announcement. A contact at EIH said merely the project was in progress. Honda Bank would not provide an update. Luhle confirmed both projects as ongoing. He attributed complexities and delays to the fact that these deals were


Universal Banking Systems Market Report | www.ibsintelligence.com 531


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