Strategies for a Successful Core Banking Implementation -

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Strategies for a Successful Core Banking
Implementation -   The roll out of FLEXCUBE at
Indovina Bank, Vietnam

• Mr. Phan Dao Vu
• First Deputy General Director
• Indovina Bank Ltd, Vietnam

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Indovina Bank

• Vietnams first joint venture bank
• Joint venture between Industrial and Commercial
  Bank of Vietnam (ICBV) and Cathay United Bank
  (CUB), Taiwan

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Indovina Bank - Business Areas

• Loans Foreign and Local currency
• Deposits Foreign and Local currency
• Trade Finance
• Remittances
• Foreign Exchange
• Money market
• Investment
• Card business
• Correspondent Banking

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GROWTH IN BUSINESSTOTAL ASSETS GROWTH 2001 -
2005
5000
4550
4000
3552
3216
3000
VND MILLIONS
1968
2000
1648
1000
0
2001
2002
2003
2004
2005
5
OUTSTANDING LOAN GROWTH 2001-2005
3200
2816
2144
1616
VND MILLIONS
1264
6
DEPOSIT GROWTH 2001 - 2005
VND MILLIONS
7
PROFIT GROWTH IN 2001 - 2005





VND 96000
VND 75440
VND MILLIONS
VND 48224
VND 46686
VND 36086
2004
2001
2002
2003
2005
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Need for a New Core Banking System

• Develop capability to provide world class
  customer service
• Establish global banking standards to prepare for
  WTO accession
• Incorporate new generation banking technology for
  competitive advantage in the Vietnamese market
• Incorporate bank-wide Risk Management practices
• Develop a platform to enable multiple channel
  delivery

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Selection of a core banking system

• Evaluation of the solution providers
• Track Record - prior implementation and support
  experience
• Maturity of the solution and the vendor.
• Flexibility ability to extend functionality and
  scalability
• Support speed and quality of support
• Cost
• Most important Attitude

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Why Indovina chose i-flexs FLEXCUBE?

• Maximum Functional Coverage
• Unmatched Flexibility
• Could be easily deployed across multiple entities
  
• Based on Oracle Technology
• Proven in Vietnam and globally

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Strategy for implementation

• Phase wise implementation in line with banks
  plans
• First pilot to go live in 3.5 months
• Implementation with minimum customization
• Ensure strict adherence to timelines

One of the fastest FLEXCUBE pilot implementations
globally!!!
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Challenges anticipated

• Strong Project Team
• Internal user resistance
• Aggressive timeline
• Conversion issues
• Change management

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Steps to a successful implementation

• Create strong Internal Process Management
• Evangelize Knowledge sharing and Training
• Set Parameters based on the current requirements
• Incorporate Rigorous Testing procedures
• Flexibility to modify, change course
• Data Conversion while ensuring Data Integrity
• Parallel Run The final confidence booster!
• Go Live !

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Key Learnings

• Setting up the right project team
• Focus on modules with high volume transactions
• Having an overall view on the service/ product to
  be offered before defining products
• Concise and focused training programmes

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Transformations with FLEXCUBE

• Fully centralized data across the bank
• Head Office has complete picture of branch
  activities
• Head Office has a complete customer view
  centrally
• Easier control and operational management
• No technology staff and operations at the branch
  required
• Complete automation of complex business processes
  such as LC, Discounting etc.
• Removal of all manual processes
• Much reduced margin of error
• Bank staff available for other activities

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Future Plans

• Increase the number of channels in the near
  future such as ATM, Internet Banking Mobile
  Banking
• Launch new products based on the flexible
  options available
• Expansion in branch network

FLEXCUBE has provided Indovina Bank an
advanced platform to sustain and further our
exponential growth
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Thank you