New Generation Core Banking System For Sustained Growth

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New Generation Core Banking System For Sustained
Growth

• A Solution with Temenos T24

Nguy?n Hu?ng Minh Deputy Director Center for
Technology based Product Development and
Application Techcombank
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Scenarios

• Vietnam economy continues to have high rate of
  growth
• increasing consumer income and spends
• Booming Banking Services
• Consumers have become more demanding,
  sophisticated and less loyal
• Way given to multilateral arrangements between
  bank, customers, distributors and other parties
• Banks being forced to share more revenue with
  third party distributors
• Increasing regulatory and compliance requirements
  by the State Bank (SBV)

3
Banks Towards Customer Centric

• Most retail Banks whilst claiming to be customer
  oriented continue to structurally operate in
  product centric model
• This structure constrains Banks to view Customer
  relationships panoramically, resulting in
  fragmentation of Customer relationships
• Inability to provide consistent customer
  experience and inability to meet increasing
  aspirational needs of customers

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Implications for Business

• New Business Models, delivery channels and newer
  services are pushing Banks operating on legacy
  systems to upgrade /replace their Core Banking
  Systems
• The Alternatives to this are
• Inability to respond rapidly to changes in market
  place
• Higher Costs of operations resulting in being
  priced out of market and hence diminishing market
  share

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Weave Business and IT Strategies Together

• IT strategies flow from bank strategic intent

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Align Core System Strategies to Business
Imperatives

• Sample Business Needs
• Develop new products quickly and reduce time to
  market
• Enhance customer satisfaction by enabling 247
  banking
• Improved servicing for customer transactions
• Reduce costs and drive economies of scale through
  shared best practice

• Sample IT Implications
• Systems must be flexible to provide for
  parameterization by which new products /services
  can be added without major modifications
• Provide range of offering on alternate channels
  Internet , ATMs , mobile banking etc
• On Line STP with automated exception handling
• Robust and scalable systems enabling huge
  amounts of transaction processing

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Customer Centric Operating Model
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Approach to Core Banking System Upgrade

• Use the opportunity to transform the Business
  rather than just replicate legacy
• A Core Banking Project is a Business Project
  which is enterprise wide with Technology being
  an enabler to help Business achieve the benefits
  it seeks
• Do not attempt to build a core banking system !!!

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Selection Evaluation Criteria

• Vendor / Partner track record and expertise
• Technology Platform
• Open Architecture
• Integration flexibility with in house and third
  party
• Scalability and future proof
• Application security
• Functionality fit /richness

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Temenos A Company Profile
500 institutions, 600 live locations
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TemenosVendor being a solution partner

• Providers
• Reactive
• Task orientation
• Short term

• Partners
• Proactive
• Solution orientation
• Long term

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T24 Core Banking System

• Open Standards
• Open platform
• Open database
• Open J2EE application server
• Integrated
• Customer relationship management (CRM)
• Centralized common processes
• Consolidated Global Customer View (Know Your
  Customer)
• Centralized Risk Management
• Parameter Driven
• User Customizable - Independent of supplier
• Rapid time to market

• Best of Breed Practices
• Decades of banking experience backing core
  applications processes
• Mission critical
• 24 7 365
• No End of Day Batch processing
• Investment protection
• Development philosophy - upgrade policy
• Long term strategy

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TEMENOS T24 as Enabler of Growth and Efficiency
Customer
Customer choice and retention
Elimination of batch
Business agility
Efficient business pipeline management
TEMENOS VALUE PROPOSITION
Operational excellence
Systems consolidation and standardisation
Reduction of risk reg. compliance
Reduction of cost of HW infrastructure
Operations
Business
IT
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Techcombank Upgrades to T24R5

• Project Milestones
• Undertaken in October 2005
• Non stop capabilities Multi Server modules
  achieved
• Project completed in 8 weeks

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Techcombank before and after T24 Upgrade

• After
• Multi-server Architecture
• Non-stop Processing
• Improved Performance Enabling Growth
• Multi- book
• AZ

• Before
• Single Server Architecture
• End of Day Batch Window
• Performance Limits Reached
• Multi-company
• LD/ PD

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T24 Upgrade - Benefits derived  for Techcombank

• Increased ROIs
• Develop new products and services at ease
• Enable bank to concentrate on ideas and marketing
  while T24 take care of the rest.
• Reducing Costs
• Improved efficiency in real-time processing
  results in lower costs
• Manual processes and paper flows are reduced by
  increasing computerized information
• Improving Productivity
• All modules are integrated
• Front, middle and back office operations are
  fully supported
• Timely information are provided

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Thank you!