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Windows 8 | empoweringanewgeneration
Core banking | Gettingmoreforlesscost
Bank 3.0 | exclusiveinterviewwithBrettKing
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usgainsindevelopmentandoperational
efficiencythatacoherent,homogenous
environmentoffers.weareverypleased
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Spring 2013 9
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tolowercostsandout-innovatethecompetition
1
foreword
SPrING 2013
Editor rebeccalambert,rebecca.lambert@tudor-rose.co.uk
News and online editor Karenmccandless
Editorial teamamberstokes,seandudley,lindsayJames
Editorial contributors
Vadislavdimitrov,daissoftware;KestutisGarfziulis,etronika;
BrettKing,moven

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W
elcome to the Spring 2013 issue of Finance on Windows. As we enter a new year,
its time to take a fresh perspective on financial services and leverage the very best
new technologies to succeed in this period of extraordinary change.
Windows 8 is, of course, at the forefront of these technologies, as Sean Foley and
I explain in a special report featured in this issue. With Windows 8, Microsoft is
supporting financial institutions in developing new business models, profit streams and
customer experiences by enabling them to be present in the lives of their customers any
time, any place, across any channel or device.
Windows 8 is certainly making its mark in the mobile space, as we find out in an exclusive
feature, which highlights the headway being made by partners including Avanade and Figlo.
As consumers embed devices into their everyday digital lifestyle, they are demanding a
seamless, contextual experience regardless of channel. With a variety of enterprise ready
form-factors and a touch-first user interface to enable newmobility and productivity scenarios
that meet the most rigorous IT standards for security, manageability and support, Windows 8
is enabling financial institutions to meet these newmarket requirements.
Also in this issue, we find out howBank SinoPac is achieving significant cost savings after
harnessing the Temenos T24 platformon Microsoft SQL Server. Theres also a very interesting
feature on Microsoft and BIANs role in cutting costs in core banking. Plus, Movens Brett King
tells us howhe hopes to reboot the industry with a completely newapproach.
I hope you enjoy the issue.
Karen Cone
General Manager, Worldwide Financial Services
Microsoft
finance
onwindows
newways
ofworking
1
Find the cloud you d
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You have cloud-ready systems already in place.
Dells open virtualization and cloud solutions create
e ciencies within your existing infrastructure, giving
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Take advantage from our know-how based on the
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121109-Microsoft-PartnerMagazin_210x280.indd 1 09.11.2012 15:22:01
08
18
40
26
32
22
7
publishedbytudorrose
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CoNteNtS
SPrING 2013
News 08
a round up of the latest stories from the financial services industry
including avanades windows Phone 8 partnership with Nokia and new
functionality in the Microsoft cloud operating system
Viewpoints 16
thought leadership from Kestutis Gardziulis of etronika on the importance
of customer relationships and offering the right services for the right
customer. Meanwhile Vladislav dimitrov of dais Software highlights the
importance of choosing the appropriate technology to support banks'
online and mobile strategies
Coverstory
Building momentum in a mixed market 18
amber Stokes looks at how Bank SinoPac has harnessed the power of
temenos t24 and SQL Server to help grow its business and bring more
products to market
Features
Connectedandinformed 22
Karen Cone and Sean foley of Microsoft discuss the impact that
windows 8 is having on the financial services sector
A bankin your pocket 26
the pressure is growing for banks to keep up with developments
surrounding mobile technology and social media. amber Stokes reports
Cuttingcosts in core banking 32
Karen McCandless explores how Microsoft and BIaN are helping financial
services organisations get more from their core banking systems at
a lower cost
Focus
A newapproach to compliance 38
Gerard Gibney of opentext explains how financial institutions can manage
dodd-frank, Basel III and fatCa compliance with opentext and SharePoint
Inpractice 40
we highlight the latest successful technology implementations at Saxo Bank,
american Safety Insurance, Crdit agricole Centre est and denizbank
Signingout 48
Lindsay James speaks to Brett King of Moven about what banks need to
do to stay in touch in the technological age
www.onwindows.com 9
NACHA Payments
21-24 april; San diego, California, USa
Cards and Payments Asia
24-25 april; Singapore
Global Payment Summit
6-7 June; Singapore
Avanade to deliver
Windows Phone 8
MarKetwatCh
the LateSt NewS IN BaNKING, CaPItaL MarKetS aNd INSUraNCe
simplifying provisioning and enabling
the distribution of corporate business
applications directly to the devices.
The growth in the use of
consumer devices at work has created
opportunities for businesses, but
also vulnerabilities that need to be
addressed, said Niko Mykknen, global
head of B2B Sales at Nokia. Working
together, Nokia and Avanade will create
business solutions to meet the needs
of the enterprise, as well as delivering
the exciting user experience which
people expect from todays leading
smartphones such as Nokia Lumia.
Dell cloud available on
Windows RT tablets
Avanade and Nokia have announced that
they are to deliver packaged Windows
Phone 8 devices, applications and
services to large enterprise customers to
meet the growing demand for business
ready mobile solutions.
The two companies will combine
Avanades application development and
system integration services, Microsoft
technology and Nokias Lumia products
and related services. Together with
Accenture, Avanade and Nokia are
also providing enterprise customers
with Windows Phone and Microsoft
infrastructure expertise to support the
pilot adoption and testing of Nokia
Windows Phone 8 devices through to
production deployments.
There is a significant gap in the market
for a new class of business-focused
mobile services and solutions, said Ian
Jordan, executive vice president of Sales,
Marketing, Innovation and Alliances at
Avanade. Avanade and Nokia are working
together to fill this gap; integrating Nokia
Lumia smartphones built on Windows
Phone 8, with business applications such
as Microsoft Office, CRM and access
to company information to improve
collaboration, productivity and sales.
As an example, Avanade and Nokia
are helping a large UK bank to replace
its current mobile device platform with
Windows Phone 8, integrated with its
Microsoft Exchange and SharePoint
environments. They are also working
with the bank to build a new corporate
enterprise hub that will enable employees
to access corporate business applications,
content feeds and information relevant to
the organisation, as well as user profiles
and other Microsoft SharePoint content.
Additionally, Avanade is implementing
Mobile Device Management to apply
security policies to the devices, thereby
Windows Phone 8 applications and services from Avanade and Nokia will meet enterprise demand for mobile solutions
Dell has updated its Dell Wyse PocketCloud
app portfolio to help connect individuals
with their professional and personal content
anytime, anywhere from mobile devices or
remote computers. PocketCloud Explore
and PocketCloud Web provide a secure
and fast way to remotely connect to users
PCs and Macs from Windows RT and other
tablet devices, including the Dell XPS 10
tablet, or any web browser.
Users require access to their digital assets
at their fingertips wherever they might be,
said Tarkan Maner, vice president and general
manager, Cloud Client Computing at Dell.
With the larger and more user-friendly
interface available on tablet devices, users
can do it all, from sharing personal memories
to editing professional documents. Dell
Wyse PocketCloud solutions make cloud
computing less pie
in the sky, and more palm of your hand,
as users are able to not only access all their
assets from their mobile devices, but also
change, upload and delete them at will.
Dell continues down a path to capitalise
on opportunities to address the ever-
increasing pressures of BYOD with new
consumer solutions for easy data access while
also adhering to demands of IT to create
secure and manageable environments, said
Stacy Crook, programme manager, mobile
enterprise at IDC. Dells updated portfolio of
PocketCloud services enables consumers to
easily access, view and share content across
personal clouds, within multiple operating
environments, while providing IT with a
secure means of providing remote access to
professional content.
www.onwindows.com
Accenture P&C product of
choice for US insurer
11
In brief
The BAI-Finacle Global Banking Innovation
Award 2012 for Channel Innovation has
been awarded to DenizBanks Facebook
Banking Platform, which was developed by
Intertech. The Facebook platformcomes
with full online banking functionality.
Xuber, Xchangings insurance software
business, is integrating the analytics
tools of fellow insurance software house
Innovation Group into a new product.
Xuber Analytics will be available for use
anytime, anywhere, on a large range of
mobile devices. Xuber and Innovation
Group both use Microsoft .NET technology.
A newstudy fromEFMA and the Alliance of
management consultancies has suggested
that challenges lie ahead for European
retail banks branches and that there will be
strategic pressure towards their reinvention
within a multi-channel sales strategy.
Facebook has developed new search
capabilities, which it is calling Graph
Search, allowing users to navigate
their connections and make them
more useful. Available now as a beta,
Facebook developers have worked with
the Microsoft Bing team to advance the
unifed search experience.
AvePoint has updated its AvePoint
Compliance Guardian solution. It helps
protect collaboration environments from
harmful information leaks, contamination,
or misuse, said Robert Yonaitis, vice
president of Software Engineering and
Standards at AvePoint.
Microsoft has made new solutions available
to help enterprise customers manage hybrid
cloud services and connected devices with
greater agility and cost efficiency. This includes
SystemCenter 2012 Service Pack 1 (SP1), the
enhanced Windows Intune and Windows
Azure services for Windows Server.
With the updated SystemCenter, cloud
infrastructure capabilities such as multi-
tenancy, software-defined networking and
storage virtualisation are built in and ready
for automated, hybrid cloud environments.
Customers can also use SystemCenter 2012
SP1 to back up their servers to Windows Azure
to help protect against data loss and corruption.
Microsoft has also released Windows Azure
technologies that hosting service providers
can run on their own Windows Server 2012
infrastructure for high-scale website and virtual
machine hosting services. Plus, with the new
release of the Windows Intune service and
SystemCenter 2012 Configuration Manager
SP1, enterprise customers can centrally manage
a full array of PCs, laptops and mobile devices.
With Windows Server and Windows
Azure at its core, the cloud operating system
provides a consistent platform across
customer data centres, service provider data
centres and the Microsoft public cloud, said
Michael Park, corporate vice president of
marketing for Server and Tools, Microsoft.
Microsoft advances its
cloud operating system
On 6-7 June 2013, consumer-oriented
companies, bankers and other professionals
from across the payments industry will
gather in Singapore to exchange insights,
share their experiences and discuss the latest
developments in the transaction space.
Global Payment Summit is a unique for
and by professionals platform designed to
give attendees the opportunity to gather
with their peers and consider the trends
and innovations that will impact the
payments industry over the next few years.
Discussion topics will include upcoming
technologies, new channels and services,
collaborative schemes and changes in
consumer behaviour. Attendees will also
have the opportunity to engage in relevant
discussions with industry leaders and hear
from some of the top thought leaders in this
space on the issues that matter, including
globalisation, new perspectives on financial
logistics, new media, the impact of the web,
regulatory compliance and how to adapt in
the face of new challenges.
More information about the event can be
found at www.globalpaymentsummit.com
Global Payment Summit
comes to Singapore this June
MarKetwatCh
Key Insurance Company has selected
Accenture Duck Creek Rating property and
casualty (P&C) policy software to support
its product development and expansion
initiatives. The insurer offers personal
automobile coverage in Kansas, Oklahoma,
Nevada, Arizona and Alabama, and will use
Accenture Duck Creek as its core rating system.
We had two priorities in our software
selection making product development
and maintenance easier and giving agents
faster and more direct access to those
products, said Ed Sitz, IT manager, Key
Insurance. Our extensive vendor evaluation
process made it clear that no other product
in the market could deliver these benefits as
well as Accenture Software.
Key Insurance will also use the Accenture
Duck Creek Express platformto support
web-based quoting for its expanding agency
network. Express is Accenture Softwares
user interface configuration tool that enables
companies to easily deploy multiple, tailored
user experiences. Rating, product definition,
and the user experience are all managed with
a common toolset a single point of change.
This capability gives Key Insurance greater
product development flexibility and helps
accelerate the product implementation process
as they move to write in additional states.
Microsoft
Cloud OS
1
CONSISTENT
PLATFORM
CUSTOMER
SERVICE
PROVIDER
WINDOWS
AZURE
Movers and shakers
Tracy Krumme has joined
NCr as vice president of
Investor relations
Capgemini has appointed
thierry delaporte as Ceo of its
global fnancial services unit
JPMorgan Chase saw its profts
increase by more than half in
the fnal quarter of 2012 from
US$3.7 to US$5.7 billion
E*Trade Financial has made the
ex-Barclays Coo Paul Idzik its
new chief executive offcer
Fundtech has appointed Misys
veteran edward ho as president
and chief operating offcer
New financial planning
app for Surface
IRESS has released an app that allows
financial planning clients, via their advisors,
to access personal and financial data from
tablets. XPLANtouch works on Microsoft
Surface tablets.
The app allows a financial advisors
clients to view and update personal details,
view portfolio data in tables, charts and
graphs, and generate a select range of
branded reports on demand.
XPLANtouch means advisors can cost
effectively provide significant value-add
to their clients, said Aaron Knowles,
executive product manager Wealth
Management at IRESS. Clients will now
have advisor-branded information about
their financial position, along with access
to trusted resources and commentary,
and the ability to track their progress
towards agreed goals all in the palm of
their hands.
Knowles said that while XPLANtouch
represents a significant milestone in a
dedicated strategy focused on delivering
mobile solutions for the XPLAN platform,
it is only the first step. We are now
developing an app that will help advisors
collate data, reports and planning tools
into an agenda for client meetings, as well
as core productivity tools for advisors
when operating mobile, he said.
www.onwindows.com
Card fraud has been on the decline in the
European Union thanks to the adoption of
EMV (Chip and PIN) technology, according
to a report from Europol. Chip and PIN
technology offers stronger security features
than conventional magnetic strips, both for
the physical and technological infrastructure
behindthe transaction, andfor the cardholder.
However, payment card fraud in Europe
still pulls in around 1.5 billion a year for the
organised crime groups involved. And, while
domestic cases of fraudhave reducedsince the
introduction of chip and PIN, cash machines
and payment terminals in countries without
EMV technology are still being targeted.
As a result, almost all fraudulent face-to-
face transactions with EU cards took place
overseas in 2011 in countries such as the
US, Dominican Republic, Colombia, Russia,
Brazil and Mexico.
EU card fraud
declines thanks
to EMV
@RWW forrester foresees
48 per cent yearly growth
for the mobile payments and
m-commerce industry:
http://rww.to/V9xxIa
@OliverWyman a Money and
Information Business: oliver
wymans annual State of the
financial Services Industry report
2013: http://cot.ag/Xxxnwz
@towerswatson Capital Markets'
transformation Signals Change
in Investment Strategy for U.S.
Pension Plans and endowments:
http://ow.ly/gZLLX
MarKetwatCh
Big data, mobility, cloud and social key for 2013
IDC Financial Insights has revealed its top ten trends to look out for in the year ahead
1. Cloud computing
Nascent community-based clouds will
become the preferred cloud model
2. targeted marketing
Banks will focus more on targeted,
personalised marketing campaigns
3. Growing interest in mobility
Competition in the mobile space will
create price wars
4. Big spending on big data
Big data spend will top US$6 billion globally,
boosting operational effciency ratios
5.Increased spend on risk
Spend on risk and compliance will top
US$74 billion worldwide
6. enterprise data strategies
Regulations will encourage implementation
of enterprise data management strategies
7. Global outlook
Global universal banks will struggle to deliver
the value of their complete franchises
8. New branch formats
New formats will breathe new life into
branch strategies
9. rising M&a activity
Rising M&A activity will drive the demand
for more effective systems integration
10. Updating legacy
Financial institutions will get serious about
updating legacy systems.
Capitol Federal Savings Bank is to deploy
69 NCR SelfServ ATMs equipped with
the companys Scalable Deposit Module
technology. The technology will provide
its customers with a faster and easier
ATM deposit experience as it allows
them to deposit both cash and cheques
simultaneously through a single slot.
In addition to the newATMs, Capitol
Federal will install Solidcore Suite for APTRA,
the only ATMsoftware that proactively
protects ATMs frominsider attacks by
preventing the introduction of unauthorised
code on the network, maintaining its integrity
and availability. The hardware and software
installations will begin in early 2013.
Capitol Federal makes it a priority to
connect with our community in a variety of
ways, which is why we wanted to provide
the latest and greatest self-service options for
our customers, said Frank Wright, senior
vice president for Capitol Federal.
Capitol Federal upgrades ATMs
15
partners
season2010
Sponsors
Industry Partners
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microsoft (nasdaQ msft) is the world leader in software, services and solutions
thathelppeopleandbusinessesrealisetheirfullpotential.thecompanyoffersawide
rangeofproductsandservicesdesignedtoempowerpeoplethroughgreatsoftware
anytime,anyplaceandonanydevice.
elaboraretmeieu.
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www.onwindows.com
SunGard has acquired XcitekSolutionsPlus
(XSP), a provider of end-to-end, automated
corporate actions solutions.
XSP will become part of SunGards capital
markets business. The companys current
chief executive Brendan P. Farrell Jr. will
continue to lead the XSP team, reporting to
John Grimaldi, head of the North American
securities business for SunGard.
Becoming part of SunGard will help
us grow our global footprint and further
enhance the breadth of our offering,
said Farrell Jr.
Corporate actions processing is
fundamental to the successful operations
of most financial services firms, including
sell-side traders, custodians, asset
managers, hedge funds and wealth
managers, added Grimaldi. The
acquisition will help us deliver specialist
corporate actions expertise and solutions
to these core customers, and enhance
our offering to our securities processing,
accounting and servicing customers.
SunGard acquires XSP
Total bank IT spending across North
America, Europe and Asia-Pacific has grown
to US$173.3 billion in 2012, a 2.8 per cent
increase on 2011, according to research
company Celent.
The majority of this growth is down to the
increased IT spend by Asia-Pacific banks. In
2012, their spend grew by 6.0 per cent to
US$59.4 billion. This growth will continue
in 2013 to reach US$62.3 billion.
Meanwhile, North American banks
increased their spend on IT by 2.4 per cent
in 2012 to US$54.7 billion. This figure will
increase in 2013 to US$56.3 billion.
European banks are reporting little to
no growth. In fact, spending by European
banks grew by just 0.3 per cent in 2012 to
US$59.2 billion. Growth will continue to be
flat through 2013, increasing by just 0.4 per
cent to US$59.5 billion.
From an IT spending perspective, the
next couple of years are going to be rocky,
says Jacob Jegher, senior analyst at Celents
Banking Group and co-author of the Celent
report IT Spending in Banking: A Global
Perspective, which unveiled these findings
following an analysis of the spending trends
across these regions. The good news is that
a slight turnaround is in sight.
Asia-Pacific region leads
banking IT spend
MarKetwatCh
In brief
Growth in internet and mobile payments in
China is expected to accelerate, with market
research frmAnalysys International
predicting that by 2015 mobile payments
in the country will top US$114bn.
(CNY712.3bn). The research frmalso
expects the number of registered internet
payments accounts to reach 1.378bn.
Selftrade, one of the UKs largest
stockbrokers, is implementing peterevans
xanite platformto deliver straight-through
processing effciency and enhanced
functionality to its back offce. xanite is a
modular SaaS solution, which will outsource
Selftrades processing and service delivery
of the back offce to peterevans.
Fiserv has acquired Open Solutions for
US$55 million. Open Solutions DNA real-
time, open technology account processing
platformis used by more than 800 clients.
Fiserv says that it plans to add some of the
features contained in its Acumen account
processing platformto DNA in the future.
Future EU rules for card payments should
be modelled on those for cross-border
bank transfers to make paying cheap,
easy and safe, say MEPs. Common EU
technical and security standards would
make card payments easier to handle, and
fees charged for handling them should
refect real costs.
Wolters Kluwer Financial Services has
announced that its FinArch fnance, risk
and performance measurement products
and its FRSGlobal fnancial risk and
regulatory reporting products will now
go to market under the company brand
Wolters Kluwer Financial Services.
Farrell Jr. will lead
the XSP team
within SunGard
name
title,company
Viewpoint
industrysector
Viewpoint
Nowadays loyalty is a hard thing to earn.
Ignore or forget your customers needs and
goals, and they will exercise their right to
choose and will search for someone who
is able to offer more. So what makes them
tick? Todays bank clients care more about
convenience. They also place a high value
on personalised products and services. In
addition, people are now using a wide array of
internet-connected devices and social media.
Successful banks need to acknowledge and
thrive in these conditions. And thats why
the majority of financial institutions have to
reinvent themselves.
First, begin your journey by keeping an
eye on emerging technologies. Gesture-based
interfaces, NFC-enabled smartphones, location-
based mobile marketing, wearable sensors and
tablets: all of themare destined to redefine our
world in 2013. Were rewiring our brains to
consume, create and curate content seamlessly
on multiple devices at the same time. And
lurking somewhere between those trends are
new innovations, which will eventually go on to
disrupt an existing market and value network.
Secondly, recognise the importance and
value of data. Social networking is probably the
biggest driver of change in consumer banking
behaviour. Everything that your customer
shares, says and connects to, every gadget they
use generates information that can be used to
improve the consumer experience, and evolve
your products and services. Customers will
adore personalised and adaptive banking. In
fact, the Global Consumer Banking Survey 2012
by Ernst &Young shows that 70 per cent of
customers are willing to provide their banks
with more personal information. Use it!
Thirdly, try meeting the demands of young
people who have already integrated the internet
and social media into their day-to-day life. Soon
they will become adults and consumers of
banking services. What will be the best online/
mobile/branch experience to fit their lifestyle?
Design a financial service with customer
touchpoints across different channels and
devices in mind. Experiment. Dont be afraid. It
is the perfect time to leave the old ways behind.
Think out of the box and give old concepts
new interfaces. Reinvent them. A new front-end
interface doesnt make a difference if the service
is still a 20th century construct. Whats the best
way to send money, or to make a payment?
Maybe your child knows? Perhaps there is a
better way to get loans, or to check your savings.
If you dont experiment, it wont be you that
pioneered it and made it possible.
Finally, choose the right development
company. Take time to understand how they
work. Start ups all have the courage (and
freedom) to use new ways to develop great
services, and this helps themcompete with the
larger corporations. Dont be afraid, therefore,
to use start up-like methods in your business
to reinvent banking. They can help you to
deliver great products more quickly. And of
course its not just the initial choice without
knowledge and proper analysis, any investment
in redeveloping a systemin a short space of time
is premature and destined to fail.
Its time to rethink, disrupt and reinvent
banking. The technologies, tools and
practices are here, and customers are
demanding these changes.
Kestutis Gardziulis is CEO of Etronika
Customers of the future will gravitate towards highly personalised, device-independent
banking solutions, as well as a consistent user experience through touchpoints, says Kestutis Gardziulis
Reinventing
successful banking
ceo,etronika
KestutisGardziulis
customerrelationshipmanaGement
Viewpoint
Gesture-based
interfaces, NfC-enabled
smartphones, location-
based mobile marketing,
wearable sensors and
tablets: all of them are
destined to redefne our
world in 2013
www.onwindows.com
Banks are nowvery much aware of the
importance of delivering an online and mobile
service to their customers. Numerous articles
have imparted general business wisdomand
specific guidelines on this subject, encouraging
banks to drive innovation, engage more
effectively with their clients, provide superb user
experiences and acknowledge that the future
is mobile. These tips are all important froma
business perspective and prove that there are
many factors to bear in mind when building a
successful online and mobile offering. But, all
too often, one very important element seems to
get overlooked the underlying technology.
At Dais Software we believe that a great
online and mobile offering needs excellent
software engineering behind the scenes. Dont
underestimate its importance and never assume
that you will get by on an old infrastructure.
Up-to-date technology. It is hard to provide a
flexible and dynamic business service based on
outdated and limiting technology. This is even
more the case in an area where a top-notch user
experience and usability are fundamental and at
a time when the bar is constantly being raised.
An interactive front-end, creating a consistent
experience across various devices and browsers,
and a robust back-end, securing performance and
optimal operations, are must-have properties of
online banking software.
Integrationcapabilities. Inthe ideal worldof
service orientedarchitecture by designandstandard
APIs for access to core andperipheral banking
systems, integrationwouldbe fluent andtrouble-
free. Every banking technology professional knows,
however, that this is far fromtruth. Knowing how
complex andheterogeneous bank ITsystems can
be, online banking software vendors shouldprovide
a strong integrationframework andbe able to fill
inthe gaps anddo the dirty work to make some
spaghetti interfaces, if necessary.
Stability and maturity. Having a solid and
secure core in the software platformis essential.
There is no conflict between innovation and
maturity the precious experience in fine tuning
the database and application gained while
handling millions of users and transactions
for years can only help when building this
next-generation personal finance management
module. Vendors should knowhowto apply a
multi-disciplinary approach to security, so strong
authentication and authorisation can be achieved
without compromising the user experience.
Customisationanddevelopment capabilities.
Software solutions by financial technology giants
deserve respect, especially whenbearing inmind
the level of investment andresources involved.
But it is this lack of flexibility of standardproducts
that may be the missing advantage so sought
after by banks today. Easy localisation, unlimited
customisationto meet specific needs andopen
development to buildfeatures andadopt innovation
as fast as possible are the tools neededto ensure you
have the right solutionto compete inthe market.
Development and delivery process. Releases
scheduled every leap year and development cycles
long enough for participants to forget what the
project was all about are definitely a thing of the
past. Not adopting agile methodologies for some
historical reasons and beliefs is slowly but steadily
giving way to early prototyping, short iterations
and other practices that have proven so successful
in the internet world.
Vladislav Dimitrov is director at Dais Software, vendor
of online and mobile banking platformeBank.net
Vladislav Dimitrov explains why banks should never underestimate the importance of
choosing the right technologies to support their online and mobile banking services
Lets talk
about software
onlineandmoBileBanKinG
Vladislavdimitrov
director,daissoftware
an interactive front-end,
creating a consistent
experience across various
devices and browsers,
and a robust back-end,
securing performance and
optimal operations, are
must-have properties of
online banking software
17
coVerstory
www.onwindows.com
Taiwan is the second most densely banked area in Asia.
The domestic banking sector is intensely competitive
and fragmented, and it is difficult for banks to generate
attractive margins by exercising price differentiation. As
a result, the sectors return on assets was only 0.35 per
cent between 2007 and 2011, which is well below the
world average. In reaction to this, many banks in Taiwan
have been actively seeking alternative paths to growth and
profitability, such as superior product innovation and
geographical expansion.
Observing the contrast between the challenging domestic
banking environment and the more attractive cross-straits and
regional markets, Bank SinoPac (SinoPac) decided to turn to
Temenos and Microsoft in an effort to differentiate itself more
clearly and enter newgrowth areas while managing its cost base.
SinoPac is a full-service commercial bank active in the
retail and corporate sectors. It currently boasts three million
customers, ranks in the top third of domestic banks in terms of
total asset size and operates through 129 branches covering all
of Taiwan. In addition, the bank has an offshore banking unit,
four overseas branches in Los Angeles, Hong Kong, Macao
and Kowloon, two liaison offices in Vietnamand Nanjing
(mainland China), and one subsidiary in California. A winner
of numerous awards for product and service innovation over
the years, SinoPac has established itself as a clear market
leader in product innovation within the Taiwanese banking
community, using its expertise in e-commerce and cross-
border banking services to launch innovative new products
such as Renminbi cross-straits remittances within 60 minutes.
However, SinoPac identified its legacy core banking
platform as a major barrier to achieving its strategy. The
banks 18-year-old system lacked both the flexibility and
scalability to support ongoing business development and
new product innovation. Moreover, the legacy environment
was not at all cost effective; the bank maintained systems on
six different platforms, which required multiple IT teams as
well as heavy support from third-party IT specialists. Also, on
a more technical level, both the technical and business users
of the system suffered from frequent processing and data
errors as well as suboptimal system availability.
SinoPac selected Temenos over a leading Indian software
services company in 2009 to replace its legacy system and
to support its long-term strategy of growth through product
innovation and geographical expansion. Specifically, at the
time of selection, SinoPac was confident that Temenos T24
would be able to support the launch of the next generation
of its Money Management Account solution and to enhance
its CPA a cash management product which supports cross-
border funds transfers and financing needs of its corporate
client base. SinoPac was also impressed by the systems
ability to consolidate information across service channels and
business lines to provide a single customer view, and thus
improve the banks risk management and use of credit lines.
Furthermore, Temenos experience in mainland China, strong
track record in fast-growing Asia/Pacific economies, and strong
regional references using the same Temenos T24 on Microsoft
BanKsinopac
19
Working in a highly competitive market,
Bank SinoPac wanted to differentiate
itself more clearly and enter new growth
areas while managing its cost base.
Amber Stokes looks at how the bank
is harnessing Temenos T24s fexibility,
scalability and cost effciency to grow
sustainably through product innovation
Building
momentum
in a mixed market
Bank SinoPac has 129 branches in Taiwan, serving over three million customers
www.onwindows.com 21
communication layer. The solution has
also centralised SinoPacs operations by
integrating deposit, lending and international
banking systems on one common platform
that supports multi-language, multi-time
zone and multi-currency operations. The
parameter-driven and highly configurable
nature of Temenos T24 enables SinoPacs
successful differentiation strategy of superior
and faster product innovation.
By implementing the highly parameterised
Temenos T24 banking software, SinoPac has
significantly empowered product innovation,
and reduced time-to-market of products
and branches domestically and overseas,
says SinoPacs CIORobert Tsai. An example
of the systems flexibility and high level of
parameterisation is the ease with which
Temenos T24 users can create and launch new
branches in the system. SinoPac has already
begun leveraging this: a short time after go-live,
the bank was able to open a branch in Kinmen
(Taiwan) without performing any coding.
Better still, the bank is nowable to build
newproducts without writing newcode, thus
reducing its dependency onhighly skilled
programmers andexternal consultants,
andits vulnerability to potentially lengthy
development andtesting cycles. The strong
business orientationaffordedby this flexibility
has firmly placedproduct innovationat SinoPac
inthe hands of those who best understandthe
business. As a result of this, SinoPacs products
will not only reachthe market faster but will
also be built ona sounder understanding of
the markets requirements, thus consolidating
SinoPacs clear product leadershipposition
withinthe Taiwanese banking community.
Temenos T24 has also completed SinoPacs
transformation into a totally customer-centric
financial services provider. The systems ability
to consolidate information across service
channels and business lines to provide a
single customer viewwill ensure that SinoPac
distributes its innovative products to the right
customers at the right time and at the right
price. Ultimately, the combination of superior
product innovation and total customer
centricity will enable SinoPac to capitalise on
domestic and international opportunities faster
and more fully than its banking competitors.
The Temenos T24 and Microsoft platform
can effortlessly handle the heavy processing
and performance requirements of a large-scale
retail banking business while dramatically
increasing operational efficiency. The massive
and linear scalability and resilience of the
solution nowunderpins SinoPacs drive to
become the most flexible and convenient
financial services provider in the cross-straits
region for both retail and corporate customers.
The newplatformhas also significantly
increased the speed of doing business at
SinoPac. For instance, the straight-through-
processing rate has significantly increased,
and online light fund transfers nowtake 0.372
seconds per transaction, while interest accrual
and capitalisations processing during close-of-
business has dramatically sped up, providing
the banks management with a clear, coherent
and accurate viewof its operating status in a
much reduced amount of time.
Considering the relentless pressures
on banking returns in Taiwan, an
absolute prerequisite for SinoPac was
that its new core banking system reach
an unrivalled level of efficiency and cost
effectiveness immediately upon go-live.
With its technology stack optimised for
high performance running on reliable yet
cost-effective HP hardware, its industry
leading architecture and its industry best
practice processes, T24 is already delivering
significant operating efficiencies.
For instance, SinoPacs annual hardware
and software maintenance costs have both
been reduced by 50 per cent. The time to
complete the daily close of business (COB)
has fallen by 70 per cent (from13 to four
hours), and the month-end COB takes six
hours less than before. Similarly, the batch
input/output daily and monthly processing
times (for salaries and pension fund
dispatches, for example) are, respectively, 1.4
and three hours shorter than before. The
T24 COB time has reduced by two thirds a
dramatic improvement, adds Tsai.
The faster processing times combined,
integrated credit limit and risk
management, and reduction in the number
of reports by nearly one-third have all
helped reduce SinoPacs cost of measuring
risk and, even more importantly, the
potentially much greater cost of not gauging
risk soon enough or accurately enough.
With Temenos T24, SinoPac has the
power to gain market share domestically and
internationally through superior and faster
product innovation and customer-centric
service, while increasing its operational
efficiency and shrinking its cost base. SinoPac
has substantially condensed its product go-to-
market cycle, and nowhas a single integrated
platformfor expansion to mainland China
and further. These benefits will be amplified as
SinoPac grows, thanks to the proven massive
scalability and resilience of the platform.
The challenge now is for SinoPac to
leverage the value created by Temenos
T24 in the face of the reshaping economy,
turbulent global financial sector and evolving
customer preferences. In any case, the early
benefits for SinoPac indisputably bode well
for the banks future.
platformconfiguration gave SinoPac the
confidence that Temenos would be the most
reliable partner for its long-termexpansion
into emerging markets in Asia and beyond.
Finally, but crucially, SinoPac required a core
banking systemon modern, open technology
with complete platformindependence,
in order to achieve a large reduction in
maintenance and operating costs. Therefore,
one of the banks principal criteria was that
the newcore banking systemrun on the
Microsoft Windows platform.
SinoPac celebrated the domestic go-live
of Temenos T24 in July 2012, bringing
to a head a remarkably efficient and
collaborative implementation process.
Strong project governance and high-
level sponsorship from the bank and the
implementation partners ensured the
timely delivery of the full solution. All 129
domestic branches in Taiwan, serving three
million customers and processing up to
two million transactions per day, went live
simultaneously and smoothly.
It was a true big-bang go-live as the legacy
systemwas immediately switched off, while
the overseas locations in Hong Kong, Macau,
China, Vietnamand the US will be added
to the central hub in Taipei during a second
phase, starting with the Vietnamese go-live in
early 2013. The mainland China subsidiary
in Nanking will go-live as soon as SinoPac
receives approval fromthe China Banking
Regulatory Commission.
We are placing significant importance
on IT to gain a competitive edge,
says Tina Chiang, SinoPacs president.
With Temenos T24 we have quickly
and efficiently undertaken a core
transformation, establishing a modern core
banking platform to support our domestic
and international growth. Temenos T24
caters to our existing and future needs.
Fromday one, the Temenos solution has
provided SinoPac with the power it requires
to scale up its business volumes and to launch
its overseas expansion into faster growth
markets both in a highly cost effective
manner. The solutions key features are:
1. A centralised, seamlessly integrated, highly
parameterisable and configurable platform,
which dramatically speeds up innovation
and unleashes first-mover capabilities
2 Massive scalability and autonomy to
support virtually unlimited growth of
customer and transaction volumes
3. A huge reduction in total cost of
ownership, through a significant increase
in efficiency and a huge reduction in
operating and maintenance costs.
The functional breadth of Temenos T24
enables us to further improve our product
and service offering, so we can maintain our
leadership in Taiwan and quickly engage
in expansion activities to become a leading
brand across the continent, Chiang adds.
Temenos T24 runs on Microsoft Windows
Server and SQL Server at the back-end at
SinoPac, and integrates with a brand-new
third-party .NET branch systemat the front-
end, using TWS.net and TOCF.net as the
CoVer Story
BaNK SINoPaC
SinoPac CIO Robert Tsai says the company is
now able to bring products to market faster
23
A great deal has changed since the launch of Windows 7 in
July 2009. The rise of the tablet has created demand for a new
user experience and new mobility and productivity scenarios,
while maintaining IT standards for security, manageability
and support. And so was born the blueprint of Windows 8,
with its focus on delivering exceptional user experiences
across multiple devices while meeting the rigorous standards
required from an enterprise-grade solution.
The financial services industry is undergoing unprecedented
change. As financial institutions seek to develop new business
models to generate revenue through customer acquisition
and retention, improve loyalty by embedding products in the
everyday lives of their customers, meet regulatory requirements
and reduce costs the launch of Windows 8 couldnt be better
timed. Windows 8 enables financial institutions to benefit from
an engaging, connected and informed employee and customer
experience, underpinned by a secure platform that meets the
most demanding compliance needs.
Microsofts vision for financial institutions is a simple
one, says Karen Cone, general manager of Worldwide
SPeCIaL rePort: wINdowS 8
Connected
and
informed
With the introduction of Windows 8,
Microsoft has reimagined Windows to
bring together the best of the PC and
the tablet and make it personal and
alive to suit your world. In this special
report, Karen Cone and Sean Foley
at Microsoft explain how Windows
8 is delivering business value to the
fnancial services industry
Financial Services at Microsoft. To
acquire and retain customers, they
must be present in the financial lives of
their customers at any time, any place
and on any device. Windows 8 is a key
component of Microsofts financial
services solution suite, offering
new enterprise-ready form factors,
a re-imagined application platform
and a touch-first user interface (UI)
that meets IT standards for security,
manageability and support. This
enables financial institutions to drive
customer acquisition and retention
through an engaging experience and
tailored insights into customer needs
and preferences, serve the always-
connected customer by providing a
seamless experience across channels,
and rationalise risk management and
compliance processes.

A value chain of support
What really makes Windows 8 pertinent
within the financial services arena is the
entire value chain of support it delivers.
Behind the curtain of the clean Windows
8 UI and intuitive apps is an arsenal of
unbelievably powerful capabilities driven
by SQL Server and Windows Server,
says Cone. Users can seamlessly access
analytics and productivity tools such as
Excel and Office, and integrate directly
with mission-critical line of business
applications to manage their business
from the desktop, laptop or tablet. At
the same time, they can be assured of
vastly improved end-to-end security.
Everything from switching on the PC, to
the way the applications interact with the
operating system, to the remote desktop
capabilities is more secure.
Windows 8 provides a comprehensive
platform to connect with customers,
build loyalty and extend the value of
existing IT investments by integrating
with core systems and existing Windows
7 applications. This applies to the
banking, capital markets and insurance
industries alike.
For example, in the insurance industry,
claims adjusters can be constantly on the
move. Whether theyre visiting claimants
or assessing accident sites, they need to
be able to have access to the information
they need, such as policy agreements and
repair estimates, wherever they are. With
over 1,700 Windows 8-certified devices
to choose from, including desktop
PCs, laptops, tablets, convertibles and
rugged devices, the Microsoft partner
ecosystem provides the industry with a
huge range of enterprise-ready devices
to choose from, says Sean Foley, CTO
of Worldwide Financial Services at
Microsoft. With a rugged Windows 8
tablet or even using the bootable USB
drive Windows To Go an adjustor
can get out into a difficult environment
and be just as efficient in the field as they
would be in the office.
In retail banking, Windows 8 improves
the effectiveness of advisors with mobility
and new device form factors, which free
the advisor from their desks to enable new
levels of customer interaction. For example,
advisors can quickly navigate a customers
financial history and provide tailored
insights to their needs and preferences
while securely accessing financial
information from Dynamics CRM.
Windows 8 is also very useful in
terms of line-busting, says Cone.
Equipped with their tablet, front
line staff can greet customers in long
queues, deal with their queries there
and then if possible, or identify them
so that when they are dealt with by
another employee they are already
logged in the system. New Windows
www.onwindows.com
25 www.onwindows.com
8 form factors coupled with Microsoft
Office, Lync and custom line of
business apps empower employees to
provide faster resolution to customer
needs and maximise every interaction
as a sales opportunity.
In capital markets, data that is well
presented in a meaningful context vastly
improves trading efficiency and accuracy.
Shifting from machine-centric commands
to natural human interactions helps
optimise collaboration and transparency
and the ability to describe trade floor
opinion and market behaviour to sales
teams and clients. Windows 8 can provide
real-time updates and analytics on the most
relevant trading and market data, ensuring
traders are constantly connected to make
better informed decisions. Windows
8 enables traders to quickly and easily
search for and view content and data
sometimes without having to even open
an application, says Foley. Its in this
fast-paced industry in particular where Live
Tiles come into their own. Users can see
real-time information without having to go
into individual apps. At a glance, they can
be alerted when something is updated or
when they have to take action.
Taking advantage of one of the many
new Windows 8 form factors whether
it be a touch-enabled laptop or a large
screen will have a significant impact
on traders. They can take their tablet
with them if theyre on the go, and can
still be making informed decisions while
complying with stringent security and
regulatory policies, says Foley. In the
office, they may choose to have a large
touch screen PC where they can view all
their information feeds at one time, using
their hands to move information around
and zoom in with the touch of a finger.
Whats next?
Whenever you introduce a new
interface, it takes time for people to
learn how to use it and adopt it, says
Cone. However, adoption rates are
high and we expect them to continue
to grow, particularly as more apps and
devices become available. Windows 8 is
setting a new standard of experience. It
connects people and devices in a more
seamless and intuitive way than ever
before, providing a level of connectivity
previously unseen in the enterprise.
THE APPS SHOWCASE
Here are just a few examples of fnancial services apps developed by Microsoft partners and customers
that are available in the Windows Store
IntelliMatch Operational Control
SunGard has developed this app to help business and IT
users access their reconciliation environment anytime,
anywhere. IntelliMatch Operational Control provides
users with the capability to monitor activities, undertake
reconciliation tasks, and respond to requests while
theyre on the go, helping to improve efficiency and
transparency while minimising operational risk.
Digital Banking Preview
Digital Banking Preview from Fiserv gives financial
institutions a working visualisation of the online and
mobile banking and payment services they can bring to
market using Fiserv and Microsoft technology.
OnBase Insurance Field Adjuster App
Developed by Hyland Software, the OnBase Insurance
Field Adjuster App gives insurance claims adjusters
instant access to the data they need, enables signature
capture on electronic forms and uses the native device
camera to capture photos. This app is designed to increase
responsiveness and improve customer service by resolving
claims more quickly with real-time access while in the field.
Bank of America Mobile Banking
Bank of Americas Windows 8 app allows customers to sign
in with their secure credentials, just like they would when
they bank online. With their tablet, laptop or desktop they
can snap photos of cheques and deposit themright away,
send money to someone using only an e-mail address or
mobile number, and set up and receive Bank of America
Alerts. The app has already had over 100,000 downloads.
ICICI Bank iMobile
iMobile application is a mobile banking facility where
practically all internet banking transactions can be done
on Windows 8 tablets and desktops. Customers can
transfer funds to ICICI and non-ICICI bank accounts
with the click of a finger. They can also pay their utility
bills and insurance premiums through this facility.
ING Direct Canada
The ING Direct Windows 8 application allows ING
Direct Canada customers to check their account
transactions, find ATMs, move money and get directions
and opening hours for the ING Direct Save Your Money
Cafes among other actions.
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FoW Ad 210x280mm 0312:FoW AD 210x280mm 22/3/12 4:26 pm Page 1
As an ever expanding array of technologies and
devices are adopted by a generation that is used
to the benefits of a digital lifestyle, online banking
is simply no longer enough to serve their needs.
Banks are nowfaced with growing pressure from
their customers to provide their services in a
seamless and contextual way regardless of channel
or device. According to an Avanade report, 93 per
cent of banks believe mobile is the future but just
23 per cent are using mobile apps to communicate
with their customers. And this needs to change.
Recent reports show that there are almost as many
mobile phone subscriptions in the world as there are
people and, according to Facebook, it has one billion
monthly active users, as of October 2012. Banks
are trying to catch up with the customers that are
fast adopters of this new technology, says Marcelo
Marquez, industry solution manager for worldwide
banking at Microsoft. A lot of other industries are
providing mobile experiences, so when customers
turn to their financial services, there is sometimes
a gap. Previously, banks had to keep up with the
demand for online banking. Now, they have the
challenge of mobility.
The customer is in the drivers seat when it comes
to technology adoption within banks, says Aziz
Virani, executive vice president and area president,
North America, Avanade. More people want to
interact with their banks this way, whether it be
tablets, on a mobile phone or online.
Avanades report The clock is ticking, why banks
need to act now to avoid running out of credit with
mobile customers has found that 49 per cent of
customers aged 18 to 25 want more mobile
banking apps, which shouldnt come as a surprise.
Consumers switch from one device to another to
perform different tasks in their day-to-day life and
this trend is forcing a multi-channel movement in the
financial services industry. So when this age group
grows older, and when an even younger, more tech-
savvy generation starts to enter the financial services
industry, the demand on banks is only expected to
grow stronger.
In North America banks are trying to step up,
agrees Virani. Most large banks and even medium/
regional sized banks have some kind of mobile
offering, but its relatively basic in terms of what
customers are able to do on it.
A Juniper Research report found that most banks
today have at least one mobile banking offering,
either via messaging, mobile browser or an app-
based service.
Rabobank estimates that 10 to 25 per cent of
all mobile banking app users do not use internet
banking on their desktop anymore, says Mick
Hanswijk, CTOat Figlo. And in the Netherlands, use
As consumers across the globe
enjoy the benefts of their
digital lifestyles, the pressure is
growing for banks to keep up
with developments surrounding
mobile technology and social
media. Amber Stokes reports
SPeCIaL rePort: wINdowS 8
MoBIle And SoCIAl MedIA In BAnKIng
pocket
bank A
in your
featUre
MoBILe aNd SoCIaL MedIa IN BaNKING
can be used for customer retention in
banking, he says. You have to be where
the customer needs you. And today, they
want you at this very moment. Anytime,
anywhere access is in high demand, so if
you dont implement the technology that
allows this, you lose customers.
Avanades Virani agrees: Mobility
is increasingly becoming the heart of
customer interaction, so in terms of
customer retention, if you cant provide
services this way, then you will lose
customers.
Another point high up on a banks
priority list is getting to know their
customer. And this is possible with
mobile technology. The more banks use
technology and get closer to customers, the
more theyre going to learn from them,
says Microsofts Marquez. Banks can get
a better profile of who their customer is
and their preferences by using mobile and
social technology. And by gathering all this
data, banks can provide better targeted
offers. Its an everyone wins proposition.
Furthermore, banks can also use this
technology to have a better understanding
of their internal processes. Having access
to information anytime, anywhere can also
change the way banks see their employees
and their roles, says Avanades Miranda.
And of course its not just the customers
that are living a digital lifestyle its the
banks employees too. So by developing
their mobile and social platforms, banks
can also achieve higher staff productivity
levels and provide full training and support
to ensure their staff can provide the right
service to its customers who want to use
their mobile and social platforms.
For the customer, the main benefit
of using this technology is that it
provides a bank in your pocket, says
Microsofts Marquez. If banks adopt these
technologies properly, then the customer
gets the anytime, anywhere access
theyre demanding. The fundamental
benefit of mobile apps in banking is
that they remove the final constraints in
providing banking services virtually for
anyone, anytime, from any place, adds
Dimitrov. Mobile banking solutions have
of mobile banking apps doubled in 2012.
So although this percentage is still rather
low, it is surely only going to growin years
to come. Banks can no longer solely rely on
their online platform no matter hownew
and innovative it may still feel.
Some banks have indeed been reluctant
to adopt mobile and social technologies in
the past. Some banks back office systems
and architectures dont lend themselves to
support mobile platforms, says Avanades
Virani. Many banks experienced this
when online banking first came into play
and theyve only just fully optimised
their systems for this. So while there
is increasing pressure to adopt mobile
technologies, there is still a market for
online banking and in-branch services, and
banks must ensure that all their systems
work together seamlessly.
It does seem that many banks have
entered the mobile race, but less seem to be
willing to join in on the social media hype.
Many banks are using social media sites
as a marketing tool, and some banks have
big web care teams but at the moment, it
really stops there, says Figlos Hanswijk.
Organisations have started using social
media platforms as a way to interact
and communicate with their younger
customers. In 2011, for example, the Royal
Bank of Canada launched a user generated
content contest on Facebook with the aim
of encouraging its student customers to
interact with the bank and promoting its
student accounts.
Being social media savvy
Ramon Miranda, European innovation lead
and CTO at Avanade Spain, suggests that
banks should start by using social media
platforms within their internal systems as a
way for employees to communicate with each
other, and this can then be rolled out to their
customers. There are goodexamples for using
social networks as contact and marketing
channels andother social customer relationship
management activities but a working model
for bank information and transactions with
necessary levels of functionality and security
is yet to be seen, adds Vladislav Dimitrov,
director at online banking solutions specialist,
Dais Software.
But will banks ever take it a step further,
and use social media as a platform to carry
out transactions, for instance? Putting
transactions into Facebook leads to all
kinds of privacy and security discussions
in an industry that is highly security-
conscious," says Figlos Hanswijk. Moven
however, founded on the very principle
of cashless, teller-less and branch-less
banking, boasts Facebook transaction
capability so that users can transfer money
to friends using the site. So perhaps there
is a way of integrating some social media
platforms with trusted technologies to
ensure customers are able to choose the
channel that suits them best.
But do banks have to adopt both mobile
and social technology? Its necessary to be
present in both and try to take advantage in
one, says Avanades Miranda. Banks have
to consider what they want to achieve and
with what kind of customer. They must
ask what is our structure? Is it capturing
new customers or providing better
service to current customers? They need
to define that first before going through
new channels. And by establishing their
purpose, banks can ensure they make the
most of the new technologies and actually
achieve valuable return on investment.
Banks simply need to be savvy of the real
benefits that surround mobile and social
media banking, however. Hanswijk states
that it basically comes down to one thing
you have to act on your customers' needs.
Mobile and social media technology
Case study: windows 8 app
BankofAmerica
Bank of america has developed the Bank of
america Mobile Banking app for windows
8 that gives customers a digital experience
that is optimised for the windows 8 user
interface and takes advantage of features
such as Live tiles.
Customers have the convenience and
accessibility of checking balances, paying
bills, making transfers, locating atMs and
banking centres, making deposits, receiving
alerts, and redeeming Bankamerideals
offers from tablets, laptops and desktops.
BankdevelopsWindows8appallowingcustomerstomanagetheirbanking
ontheirsmartphone
Case study: Personal fnance management
Knab
Knab which is bank spelt backwards is a
new bank based in the Netherlands with a
key mission of turning banking on its head.
Knab is set to revolutionise banking as we
know it through its entirely customer-centric
and self-directed approach.
the bank worked with figlo to implement
its fnancial planning tools and delivered
the capabilities to its customers not its
advisors. the figlo Platform, together
with a number of other technologies
from Microsoft partners, has allowed
the bank to introduce a number of new
key functionalities. for example, when a
customer goes into their overdraft, Knab
automatically moves the money if it is
available in another account, such as a
savings account, so that the customer
doesnt have to pay a fee. the banks mobile
app also allows customers complete visibility
of not just their bank account, but also their
assets and liabilities.
Netherlands-basedbankrevolutionisesthefnanciallandscapeusingFiglo
technologyplatformwithitscustomer-centricapproach
Case study: Mobile banking
Scotiabank
as mobile device use has continued to
increase among Canadians, Scotiabank
was faced with an increasing number of
customers demanding 24/7 access to banking
information. delivered by Microsoft partner
fiserv, the Scotiabank mobile banking solution
is a secure, end-to-end, real-time service
with a number of capabilities, including bill
payment, transfers, as well as domestic and
international person-to-person payments.
Leveraging Microsofts .Net framework and
Microsoft SQL Server, Scotiabank now offers
mobile banking to Canadian customers via a
downloadable app, mobile browser and SMS
banking. this award-winning solution has
driven increased customer satisfaction, enabled
cost-savings for the company, and laid a
foundation for future growth and innovation.
CanadianbankisrecognisedwiththeCelentModelBankAwardforinnovative
andeffectivetechnologyuseinbankingwithMicrosoftmobilesolution
branches? The branch will continue to
play a key roll in the relationship, Marquez
adds. Advisors will still remain in branches
but the whole financial services process will
become a lot more segregated. Customers
will go in branch for some services but will
use mobile channels for others.
Banks will also need to focus on providing
a better, richer in-branch experience that
allows multi-channel interaction. Branches
of the future will rely on an integrated,
multi-channel experience, adds Marquez.
Banks cannot just rely on investing in their
mobile offering. Customers will also demand
a better experience in their branch where
advisors use multiple devices to provide a
better customer service.
Branches in the future will be
consolidated into bigger ones, agrees
Avanades Miranda. Banks will concentrate
on using multiple electronic devices in the
branches that link all the banks branches
and are able to share documents and data
through high security channels.
also pushed some banks into markets,
segments or demographics that have
otherwise been unreachable by traditional
banking. So not only can banks provide a
better service to their existing customers,
but its also an opportunity to up-sell,
cross-sell and attract new customers.
Banking apps could even alert
customers to possible security issues,
Hanswijk says, as a further example.
Instant alerts on a smartphone could
give customers and banks an improved
sense of safety and control. A customer
could also get more of a grip on the state
of their financials and consequently
reduce debt. If a customer is able to
have access to their bank account at all
times, wherever they are, they are better
able to manage their money something
that is a real concern for customers today
following global financial difficulties.
So where does Windows 8 fit into all
of this? Windows 8 introduces a new
modern user interface and application
model it will allow banks to add an entire
new channel perfectly optimised for tablets
and hybrid devices of remarkable variety
of makes and form factors, says Dais
Softwares Dimitrov.
Customers require seamless access to
functionality irrespective of time and place
and whether they choose to interact with
the bank online, on a tablet, smartphone
or in a branch, says Virani. And Windows
8 is well positioned to meet this challenge.
With the introduction of Windows 8,
Microsoft has reimagined Windows to
bring together the best of the PC and the
tablet. This combined with Windows
Phone 8, is a real game-changer.
With Live Tiles, banks can give direct
feedback to its customers in a very user-
friendly way, says Hanswijk. The trend
today is that customers are pushed (by
law, legislation and costs) to do a lot of
work themselves, that used to be carried
out by the advisors. By using the same
experience through intranet, web and
mobile, both the bank advisors and the
customers are able to work together
using the same familiar interface.
Omnichannel solutions can finally feel
the same across all channels. This
should be of particular interest to banks
in the Netherlands as a legislation was
passed in January this year that rules that
banks are no longer able to incorporate
the costs of their advisors in their
products, and cash-conscious customers
are going to really think about paying out
for an advisors services.
Microsoft and its partners are
already delivering solutions that meet
the multi-channel challenge for banks
today. Accenture and Avanade have a
very extensive suite of solutions that
weve delivered to banks for years
now, Virani says.
Avanade Next Generation Banking
Mobile solution
To help banks plan their cross platform
mobile banking offering, Accenture
and Avanade have developed the Next
Generation Banking Mobile solution
for Windows 8 that demonstrates
mobile banking capabilities on the
Windows 8 platform.
The Next Generation Banking Mobile
solution really demonstrates how Windows
8, Windows 8 tablets and Windows Phone
8 are innovative and can truly drive change
in the industry, says Virani. The solution
will allow customers to open new accounts
and transfer money, from accounts they
dont even hold with that one bank and
also outside the country. Functionality
also includes being able to deposit cheques
by taking a picture of them with a mobile
phone and depositing it through the app
or via an ATM, Virani adds. A real key
feature of the solution is that it will allow
customers to start these transactions offline
if theyre on an aeroplane, for instance
and then when they have an internet
connection, the application sends them
an alert to remind them to complete the
transaction and sends the information to
the bank.
Figlo Platform
Our solutions for personal financial
planning and personal financial
management are supported by both
usual web services as well as JavaScript
object notation application programming
interfaces, so that it supports both web
and mobile solutions, that are based on the
same platform, confirms Hanswijk. Figlos
solution can be delivered to banks out of the
box and they can customise it themselves.
So will it be possible for customers to
do all their banking on their smartphone
by 2020? Banks have no option, says
Microsofts Marquez. Theres already a
motion in that direction, so its up to the
industry to keep up.
Mobility is an irreversible trend, says
Avanades Virani. And this trend will
simply continue to develop. But what
does this mean for the bricks-and-mortar
featUre
MoBILe aNd SoCIaL MedIa IN BaNKING
Figlo's personal fnancial management solutions can be delivered to banks out
of the box so that they can customise it themselves
Accenture and Avanade have developed the Next Generation Banking Mobile solution
for Windows 8 that demonstrates mobile banking capabilities on the Windows 8 platform
93%
of banks believe mobile is the
future but just 23% are using
mobile apps to communicate
with their customers
Source: Avanade)
33%
of banks say customers
aged 18 to 25 are the most
demanding
Source: Avanade)
49%
of customers aged between
18-25 want more mobile
banking apps
Source: Avanade
10-25%
of all mobile banking app users
do not use internet banking on
their desktop any more
Source: Rabobank
1 billion +
mobile phone users will have
used their device for banking
by the end of 2017
Source: Juniper Research
36%
of banking customers think
that they will do all of their
banking through their
smartphone by 2020
Source: Avanade
Banking is one of the most IT intensive
industries with no physical product to sell but
a mountain of data to manage effectively and
efficiently. It may come as no surprise then
that IT spending in the industry is high, with
research from Temenos revealing that banks
are spending 14 per cent of their budgets
on IT, compared to a cross industry average
of just seven per cent. But, the cost ratios
and economics for banking operations and
IT spending are unsustainable given banks
increasing capital requirements, declining
margins and the rise in operational costs. At
the heart of this are core banking systems,
which comprise the largest area of
IT spending for banks.
Core banking systems are like the engines
systems of a ship they are large, have to be
ultra reliable but are also high cost and high
risk, says Colin Kerr, industry solutions
manager in the Worldwide Financial Services
team at Microsoft. Part of the reason why
banks IT spend is so high is because their
core banking systems are expensive to run,
outdated and siloed, and have been patched
and customised according to requirements over
the years. These complex legacy systems are
difficult to update and lack the agility needed to
run cost-efficient operations. They can also be
unreliable, which negatively affects the customer
experience and harms brand reputation.
In addition, prior to the financial crisis in
2008, cutting costs wasnt top of mind for banks,
according to Hans Tesselaar, executive director of
the Banking Industry Architecture Network (BIAN).
We established BIAN in 2008 in response to
the crisis and the need for banks to manage their
budgets and cut IT spend. Now all banks want to
get the most value for each IT dollar or euro spent.
This means that, despite the large spend on core
banking systems, IT productivity levels have not risen
accordingly. For protracted periods of time, growth
FeATuRe
CoRe BAnKIng
in core banking
Cutting costs
Karen McCandless explores how
Microsoft and BIAN are helping
fnancial services organisations get
more from their core banking systems
at a lower cost
addition, these systems permit a bank
to act fast given the technological ease
of launching new products, opening
branches, and so forth, says the
Temenos white paper.
Now the industry as a whole is
beginning to move towards modern,
flexible core banking systems.
This has been enabled through the
establishment of BIAN. All members
(which include Microsoft, as well as
leading partners and banks globally)
are engaged in developing new
architecture standards and simplifying
and reducing the costs of technological
integration, which often stops banks
implementing new software.
When banks purchase off-the-shelf
products, they often have to spend an
additional three to four times the list
price for money integrating them with
their other systems, says Tesselaar. To
reduce these costs, the banking industry
needs an open reference model that
includes generic boundaries and service
definitions. If both the banks and the
vendors comply with that standard, a
huge financial and technical issue will
be solved. This will help reduce costs
enabling banks to become more agile and
increasing the business case for replacing
core banking systems.
All the banks and vendors involved
in BIAN are working towards this
common goal and many vendors
have now started to restructure
their banking offerings in line with
the BIAN landscape to simplify the
implementation process for banks. We
ask banks to share their requirements
in IT spending has failed to translate into
correspondingly higher levels of productivity
growth; a phenomenon known as the
productivity paradox, says a Temenos
whitepaper. In fact, the reverse is true: for
extended periods of time, rapid compound
annual growth in IT spending has coincided
with stagnating or even falling levels of
productivity growth. But as the largest area
of banking IT spend, core banking systems
should be first in line for modernising.
Focus on the benefits
However, the cost of modernising core
banking systems is large and the risk is
high. Banks cannot afford to have any
outage that will affect its customers. But
the benefits of modernising core banking
systems are great, with lower costs, greater
product flexibility and an improved
customer experience. Modern core
systems allow banks to concentrate on
adhering to the new wave of regulations,
as well as introducing new products to
market quicker and staying on top of
innovation, says Kerr. They can do
this safe in the knowledge that their core
systems will be running smoothly.
Modern systems provide the
complete view of customers needed
(and the flexibility) for banks to be
able to tailor products and services. In
FeATuRe
CoRe BAnKIng
Case study: Modern core banking system
PTBankSyariahMandiri
Pt Bank Syariah Mandiri (Bank Syariah
Mandiri), the largest Islamic bank in
Indonesia, has installed temenos t24 (t24)
core banking solution to support the growth
of its business. with the deployment of
t24 Model Bank for Islamic banking, Bank
Syariah Mandiri has been able to implement
fexible core banking software, designed
to mitigate operating costs and reduce
operational risk.
Implemented with anabatic
technologies, temenos Indonesian
partner, t24 has been deployed across
Bank Syariah Mandiris 705 branches
serving 3.5 million bank accounts. the
bank now has an integrated, functionally
rich core banking platform in place which
supports the liability side of its Islamic
banking business. this includes signifcant
enhancements in providing Sharia-
compliant proft sharing, with t24 able
to facilitate much sought after support
for three different variations of the proft
sharing calculation. as a result the bank
has enhanced agility and fexibility to
better respond to customer requirements,
and also to deliver new and improved
services with faster time to market.
running on a Microsoft platform, both
routine and complex banking processes
such as customer on-boarding have been
automated to increase effciency and drive
down operating costs. the second phase
of the project will focus on the integration
of the asset side of the business and on
enhancing fnancing functionality.
yuslam fauzi, Ceo, Bank Syariah Mandiri,
said in a press release: as a fast growing
company we were looking for a leading,
state-of-the-art system to strengthen our
position and to leverage market growth.
temenos offered t24 as a pre-confgured,
parameter-driven model bank with Sharia-
compliant standard products and processes
which we have adapted to the Indonesian
market. temenos open solution was easy to
customise and offers us a stable and reliable
platform to support future growth.
david arnott, Ceo, temenos, said in a
press release: through the implementation
of t24, Bank Syariah Mandiri has been able
to replace more than 20 legacy applications
to automate their banking processes. this
lowers the total cost of ownership for the
bank, and most importantly enables them
to become even more service-oriented
strengthening the banks reputation for
excellent customer service. t24 thereby not
only supports Bank Syariah Mandiris work in
the Islamic sector, but also allows the bank
to devote more time and resources to its
wider banking operations. this It investment
will aid Bank Syariah Mandiri in its aim to
continue to lead the Indonesian market
in the provision of best in class Sharia-
compliant banking services.
IndonesiaslargestIslamicbankgoeslivewithnewmoderncorebankingsystem
Bank of Bangkok is the frst Asian bank to become a BIAN member
Modern core systems
allow banks to concentrate
on adhering to the new
wave of regulations, as
well as introducing new
products to market quicker
and staying on top of
innovation
Microsoft
Colin Kerr
Partner profle
Sword Apak
Sword apak has become an established
provider of expert business and technological
solutions for the retail and commercial
banking sectors. developed on Microsoft .Net
for fast implementation and deployment, our
aurius and Beambanking solutions are able to
support a wide range of back and front offce
bank operations.
www.sword-apak.com
Server 2012. At peak performance, the
system processed 11,500 transactions
per second in online business testing
and averaged more than 10,000 interest
accrual and capitalisations per second
during close-of-business testing
processing 25 million capitalisations and
account accruals in less than 42 minutes.
Meanwhile our BizTalk integration
solution remains important, especially
in terms of its connection to Swift using
the BizTalk Accelerator for SWIFT. This
is demonstrated by Oesterreichische
Kontrollbanks adoption of BizTalk
Server and SQL Server. The Austrian
bank has significantly improved
performance, transparency and reliability
of its core processes and reduced costs
by up to 90 per cent.
With Microsofts mission critical
capabilities and solutions, along with its
reference framework, partner-led approach
and commitment to developing a standards-
based approach to core banking, the
company is uniquely positioned to help
financial institutions address key challenges
in modernising its core banking systems.
Microsofts proven technology and
mission-critical services, together with
application solutions from our partners,
provides comprehensive solution
offerings across banking operations, says
Kerr. We offer a low cost platform that
enables banks to build above and beyond
the core to areas like online and branch
banking and business intelligence with
other parts of the Microsoft stack. This
results in being much faster to market,
having better business agility, the ability to
generate more revenue from products and
an increase in innovation. With Microsoft
technology and our great partner
ecosystem, we can help banks around the
globe transform the way they operate.
for core services and software and
services and vendors to then implement
these services based on formally defined
processes, explains Tesselaar. Our
strength is that BIAN has a global reach,
having welcomed its first Asian member
bank in October 2012 and expecting an
announcement soon on the inclusion of
a US bank.
MIRA-B
Microsoft, as one of the founding members
of BIAN, has used these standards as a
basis for the Microsoft Industry Reference
Architecture for Banking (MIRA-B). MIRA-B
offers a collection of ideas, practices,
and frameworks based on Microsofts
experience in delivering mission-critical
solutions to the financial services industry.
Rather than focusing specifically on
Microsofts technology for the sector, it
provides guidelines on implementation
approaches and technical capabilities,
as well as explaining the importance of
people, process, policy and governance.
MIRA-B was created for marketplace
education and to provide a framework
to the banking industry, our partners
and our customers to help them align
business and technology assets, says
Kerr. Before, many banking customers
and partners werent aware of the
depth and breadth of the Microsoft
technology stack, which is something
MIRA-B aims to address.
With a core banking system built on
the Microsoft technology stack that Kerr
mentions, banks will have a scalable,
reliable and high-performance platform
that provides end-to-end data integration.
Microsoft is continually investing in its
platform with the most recent versions of
SQL Server and Windows Server offering
a raft of enhancements, which are helping
the company make its mark in the industry.
Five or six years ago, relatively few
core banking implementations were on
the Microsoft platform but there has
been a huge uptake in the last few years,
says Kerr. Performance benchmarks
have been a big contributing factor.
For example, when Temenos tested the
high-end performance and scalability of
T24 R12 on a pre-release version of SQL
FeATuRe
CoRe BAnKIng
to reduce integration
costs, the banking industry
needs an open reference
model that includes
generic boundaries and
service defnitions
hans tesselaar
BIaN
We unify all business functions using one architecture and one
database. We eliminated the root source of ineffciency and
errors caused by system integration gaps. More than that,
we have dug down into the business processes of multiple
disciplines to unearth where synergy can replace duplication,
gaps and wastage. This new generation system contains
Innovations, simplifcations and error trapping solutions that
are beyond imagination.
A Zero Error Technology, Beyond Imagination 10 fold cost reduction, Portfolio Management,
Fund Accounting, Risk, Unit Pricing, Analytics/Attributions, Front Offce
Our Difference Will Change Your Business Forever
tan@riskk.com | Tel: +6012 373 0633
You can reduce Accounting/Valuation staff from 20 to 2.
You trap errors you have never notice.
Your Pre Trade compliance check is precise and complete
Eliminate constant override of poorly defne breaches
You do NOT have to deal with systems integration issues
Your Unit Pricing is fully automated with zero error
You get instantaneous support via Microsoft Cloud
The technology is fully funded by the costs saving
Cost Savings & High Precision across all Global Centers
www.riskk.com
Case study: in practice asset management and fund accounting
AffnFundManagement
riskk.Coms onePortfolio is a radical departure
from typical system design. It unifes diverse
disciplines and functionality to create an
innovative, simple system. Besides the
standard functions, it covers comprehensive
pre-trade compliance, error trapping, risk
management, multi-currency accounting and
automated unit pricing.
affn fund Management in Malaysia
took advantage of the solution to simplify
its processes and expand its capabilities. Its
business has grown signifcantly since then,
without the need to add more staff. dato`
Mohamad ayob abu hassan, managing
director of the company, explains: we were
the new kid on the block, a growing outft
with big ambition but limited resources. we
were faced with numerous challenges. even
before embarking on growing our business,
we needed to acquire a proven, stable
operating system. we must be able to handle
complex requirements in risk, compliance and
fnancial innovation. these include the ability
to generate accurate daily prices within a
one-hour window: multi-currency, multi asset-
class, multi-exchanges capabilities, integrated
accounting, timely decision support, pre trade
compliance, risk management, fexible report
writing and easy data access.
riskk.Comis also able to provide affn fund
Management with round-the-clock support,
trouble shooting problems within a one-hour
window. to do this, it takes advantage of Microsoft
cloud technologies, including Lync, which allows it
to receive and respond to issues without delay.
MalaysianbankusesRiskk.ComsOnePortfolio.Netsolutiontosignifcantly
reducethenumberofstaffrequiredtohandleunitpricingprocesses
Partner profle
Riskk
riskk.Com is an outsourcing and system
provider, offering portfolio management/
fund accounting solutions via the cloud.
Solutions cover pre-trade compliance, risk,
simulations, attribution, multi-currency
accounting, fully automated unit pricing and
signature functionality.
www.riskk.com
name
title,company
Viewpoint
industrysector
A financial services firmmay be using a different
approach that does not work with Microsoft, or
a traditional vendor was chosen by IT without
real knowledge of compliance or the advantages
of SharePoint integration. We offer an alternative
that does not require major training efforts, huge
enterprise changes in licenses and software, or
major consulting efforts all over the firm. We can
do this just for your department or business unit.
Dashboards
Senior management needs to know exactly
what is going on, what the percentage of
completion is, if there are any bottlenecks
and determine who is available for them to
route work to. Using our joint solution we can
provide dashboards to address all of this.
Training and education must also be tracked
to ensure that the firmis in compliance with
all the new policies and procedures. This can
also be shown in a dashboard, which can be
accessed by appropriate regulators as necessary.
Our SharePoint-based LMS Operitel can help
you to do this, in that familiar look and feel.
Proper training and education is critical to
proving to regulators that you are in compliance
with different initiatives and will remain so.
Using OpenText and Microsoft SharePoint to
implement compliance with Dodd-Frank, Basel
III and FATCA offers a tremendous opportunity
for financial services firms to increase
SharePoint deployment, leverage other parts of
the Microsoft stack, make SharePoint a much
more mission-critical application and, ultimately,
increase the value of their enterprise agreement.
Gerard Gibney is senior strategist of Financial
Services at OpenText
The Dodd-Frank Act was passed in 2010
and has over 400 new rules and regulations.
So far 224 of them are completed, with the
rest still being written. In order to meet
deadlines, financial services firms must
implement many of the new regulations
simultaneously, as well as maintain
compliance with all of them in the future.
At the same time, financial services firms
have to implement Basel III and FATCA
depending on where and how they do
business. With multiple projects being done
simultaneously by many people in different
groups such as legal, compliance, trading
and information technology, both inside and
outside the firm, how will regulators gain
visibility into and control over all of these
projects, manage all the processes, change
complicated work flow on the fly, make people
more efficient, shorten the time frames and
assign tasks to those best able to do them?
A portal approach using Microsoft SharePoint
makes a lot of sense. SharePoint is already on
the desktop at most financial services firms and
has that familiar look and feel.
Visibility and control
OpenText and Microsoft are nowsupporting
clients in managing compliance better using
OpenText business process management (BPM)
to extend and enhance SharePoint. Our BPM
solution includes process control, advanced
workflowcapabilities that are changeable on the
fly, collaboration, visibility for senior management
into every aspect via dashboards, visibility for
regulators, links to learning management systems
and other compliance applications. And it can all
be seen in SharePoint.
In fact, OpenText BPM is so tightly
integrated with SharePoint that most
knowledge workers only see SharePoint. They
have nothing new to learn. This is a huge
advantage and one of several reasons that
Microsoft asked OpenText to participate in
this joint effort. Our powerful BPM engine is
driving all of the processes in the background.
It offers all of the traditional advantages of
business process management software, but
coupled with tight Microsoft integration,
it offers a tremendous amount of value to
SharePoint users. This tight integration also
helps drive deployment of other parts of
the Microsoft stack. As a result, the value of
the enterprise agreement is increased and
SharePoint moves to a much more important
and mission critical application: compliance.
Sanjay Manchanda, director of SharePoint
Products and Technologies at Microsoft,
confirms this, stating: OpenText is an
important Microsoft partner and is well known
for its enterprise-scale content and compliance
management capabilities in the solutions it
creates for customers.
Improved training
The OpenText SharePoint-based Learning
Management System(LMS) manages, tracks
and displays the entire training and education
status of all involved employees. The OpenText
Application Governance and Archiving, called
AGA, can be used to manage SharePoint sites
more efficiently.
A segmented approach
Another key advantage is OpenTexts ability to do
things on a departmental or business unit basis.
Gerard Gibney explains how fnancial institutions can manage Dodd-Frank,
Basel III and FATCA compliance with OpenText and Microsoft SharePoint
A new approach
to compliance
opentextandmicrosoftare
nowsupportingclientsin
managingcompliancebetter
usingopentextbusiness
processmanagement
toextendandenhance
sharepoint
seniormanagement
needstoknowexactly
whatisgoingon,whatthe
percentageofcompletion
is,ifthereareany
bottlenecksanddetermine
whoisavailableforthemto
routeworkto
risKmanaGementandcompliance
focus
OpenText BPM is so tightly integrated to SharePoint that most knowledge workers only see SharePoint
inpractice
tradinGplatform
41 www.onwindows.com
Saxo Bank
Danish bank achieves impressive results running its trading functions and
infrastructure on the Microsoft platform
Headquartered in Copenhagen, Denmark,
Saxo Bank specialises in online trading and
investment across global financial markets.
Since receiving European bank status in
June 2001, Saxo Bank has rapidly become
a leading presence in online trading thanks
to its superior client service, competitive
pricing and focus on the development of
industry-leading trading platforms.
To help Saxo Bank achieve its goals,
Microsoft is supporting the bank with a
high performance mission-critical platform,
at a low TCO, to drive low latency, hedge
in real-time, improve efficiency ratios and
provide the flexible foundation needed for
business model transformation. This started
in 2000 when Saxo Bank decided to build
and develop its entire trading functions and
applications on the Microsoft platform.
Microsoft gave us the tools, technology
and platform, achieving flexibility and
speed of development crucial to a new
organisation and at an attractive price point,
says Mikael Munck, Saxo Banks chief
information officer. We partnered early with
Microsoft, giving us gains in development
and operational efficiency that a coherent,
homogenous environment offers. Looking
back, we are very pleased with the choices
we made. We have given ourselves the
opportunity to develop more for less.
In 2008, the bank chose to implement
the Microsoft Dynamics CRMplatform
and integrate the solution with its line of
business applications and workflows. This
was a first step in acquiring and integrating a
standard industry solution and transitioning
froma build to a buy strategy. Dynamics
CRMis now enabling Saxo Bank to increase
customer profitability through improved
sales productivity, build customer loyalty
and retention, and optimise efficiency
through streamlining operations.
Saxo Banks back-end operations and
business intelligence capabilities run on
SQL Server and supporting components
like SQL Server Integration Services and
Reporting Services. The full range of SQL
Servers OLTP and OLAP capabilities are
used across the value chain. The company
also takes advantage of a number of
solutions from the Microsoft partner
ecosystem, including SunGard Adaptive
and Front Arena, which run on Microsoft
SQL Server and Windows Server.
Since we began working with Microsoft to
develop our trading infrastructure, weve been
quite religious to sticking with the Microsoft
stack, says Munck. The decision to do this
has allowed us to achieve significant benefits.
We dont, for example, have to think about
integrating different technologies and finding
ways of making themwork together. We
dont have to worry about running legacy
systems and working with multiple vendors
nor are we having to incur the extra costs.
Saxo Bank serves more than 100,000
clients worldwide. At any given point, it will
have an average of 7-15,000 clients trading
on its platform and this figure continues to
grow. The company is committed to being
the most professional and reliable facilitator
in the world and it is this focus that so far
has been the key to its success. But this
strategy is only as good as the underlying
data and infrastructure it relies on.
We believe that we offer the most
advanced and appealing trading platformto
the community, says Munck. Thanks to our
advanced IT infrastructure, our clients can
access the worlds major financial markets from
any location in real time and trade a broad
range of financial products, including Forex,
FXOptions, Stocks, CFDs, Futures, Contract
Options and ETFs, all froma single account.
Saxo Bank also customises and brands
its platforms for white label clients and
corporations. We currently white label
our trading platformto over 100 financial
institutions and we expect many more
institutions to follow suit and take advantage
of our platformin the future, says Munck.
The upfront investment required to build a
platformlike ours is staggering. As a result,
theyre choosing to customise our platform
and brand it under their own name. We
offer the technology, the knowledge and the
infrastructure to enable clients to enter or
expand in the online trading market.
Lowlatency is crucial for Saxo Bank and
something the financial institution is constantly
looking to improve on, as high latency
increases the risk and affects the bottomline if
youre not able to timely hedge your risks and
price your clients correctly. The environment
we are in is extremely latency-centric, explains
Munck. We have to ensure that we are
delivering competitive latency to our clients
and we are constantly being pushed by themto
do more. We then impose these demands on
Microsoft and, to be honest with you, I think
this cycle will go on forever!
Lowlatency allows us to take on more
aggressive flows and win out in areas where
our price is a part of an aggregated stack,
which is becoming more common, continues
Munck. Plus, it gives us the opportunity to
hedge our risks in real time. It also opens up
opportunities for us to growour business with
newproducts and serve newclient segments.
Looking ahead, Saxo Bank will continue
to work closely with Microsoft to deliver on
its vision to offer its clients a wide range of
opportunities to trade the worlds capital
markets. It will be focusing on continuing
to reduce latency and to further develop its
mobile offering. The companys recently
launched mobile trading applications have
been well received by clients and Saxo Bank
will be focusing even more on its mobile
offerings in the future. Mobility is an area that
will continue to evolve, says Munck. Anyone
who wants to be a leader in any industry
will have to monitor howmobile devices are
being used to do more and more things. As
these mobile platforms mature, this is a big
development focus for us. We will also address
howwe are delivering our services and content
across newand emerging platforms.
Undoubtedly, Saxo Banks clients will
continue to push the bank to keep innovating,
and Saxo Bank will in turn keep pushing
Microsoft to provide the capabilities it
needs to deliver these innovations. We are
continuing to challenge Microsoft to meet our
ongoing requirements as we continue to grow
not only in terms of helping us to support
the increasing volume of clients we service,
but also in terms of enabling us to increase
our business sophistication and add new
products and lines of business, says Munck.
Saxo Bank is a leader in providing cutting-
edge, innovative trading and investment
solutions to clients across multiple asset
classes, segments and markets, says Rupesh
Khendry, head of Worldwide Capital Markets
Industry Solutions at Microsoft. Saxo Bank
demonstrates the success of Microsofts
continuing commitment to offer its clients
a comprehensive mission-critical platform
for capital markets. We look forward to our
continued partnership with Saxo Bank.
Saxo Bank based in Denmark has developed its entire IT infrastructure on the Microsoft stack
Overview
Solution: tradingplatform
Benefts:lowtotalcostofownership,
integratedworkfowsandprocesses,
enhancedfexibilityandoperational
effciency,ongoingdevelopment
andinnovation
Technologies: microsoft.net
framework,microsoftdynamicscrm,
sQlserver,windowsserver
Partner:microsoft
www.onwindows.com
prierrorquandograecisne,aperiamsapienteex
has.inridensvivendointerpretarisper,anubique
ceteroscriaperiamtequando
Gordon Esmond Freye, Microsoft
43
American Safetys conversion fromits
legacy systems to Accenture Duck Creek
software is structured in phases by product
line. Accenture Duck Creek provides staff
augmentation for the implementation team,
which is led by Syntel. The initial migration,
which was finalised in 2011, consolidated
the quoting, rating, binding and policy
administration for three lines of business onto
the Accenture Duck Creek system.
Significant improvements to American
Safetys operational efficiency are apparent after
just the Accenture Duck Creek software initial
implementation phase. Time requirements
for updating rates and factors have shortened
fromthree months to three weeks. The request
backlog has reduced from500 to 120. IT
spending has been cut to three per cent of
the gross written premium, with only 50 per
cent spent on maintenance. A reduction in
manual processes has also reduced submission
clearance processing time fromup to three
days to less than three minutes. Accenture
Duck Creek Policy Administration and Rating
has enabled a faster speed to market for new
products and acquisition integration of new
lines of business within four months. The
systemis also providing accurate capture of
pricing data for actuarial analysis.
With Accenture Duck Creek Policy
Administration and Rating, American Safety
is equipped to quickly introduce or modify
its complex products and better serve its
customers and distributors.
Bermuda-based American Safety Insurance
has been providing insurance and
reinsurance solutions in the speciality
insurance market since 1986.
American Safetys US operations offer
speciality insurance products and solutions
to small and medium-sized businesses across
all 50 states and the District of Columbia,
focusing on two speciality divisions: excess and
surplus lines (E&S) and alternative risk transfer
(ART). E&S includes property, environmental,
construction, products liability, excess, surety,
healthcare, and professional liability lines.
ART includes speciality programmes and fully
funded lines. In Bermuda, the company offers
speciality property and casualty reinsurance
products primarily to US and international
insurance companies.
Over the past 25 years, American Safety has
developed underwriting expertise, a flexible
platform, and a customer-centric business
focus, all of which contribute to the companys
continued growth and success. In 2011,
American Safety recorded over US$298 million
in gross written premium, representing growth
of over 7.5 per cent fromthe prior year.
Following several successful business
acquisitions, American Safety was managing
19 disparate technology systems, along
with multiple interfaces and a portion of
rating tasks that were manually completed
in Excel spreadsheets.
The plethora of technology systems
thwarted the companys operational efficiency
and slowed the companys quoting process.
The burden of these legacy systems also
commanded excessive maintenance and
support costs, in terms of both time and
money. Technology spending consumed
3.6 per cent of the companys gross written
premiums, 73 per cent of which cost was
dedicated solely to maintenance.
American Safety decided to upgrade to one
newtechnology systemthat could streamline
information processing across all corporate
entities and improve quoting time.
American Safety selected the Accenture
Duck Creek rating and policy administration
solution, which has been built using .NET
to address its technological challenges. Julia
Davis, CIOof American Safety, explains the
companys decision: The complexity of our
products made it imperative for us to have
a robust product configuration tool. We
went through a rigorous vendor selection
process and felt that the Accenture Duck
Creek software suite had the right mix of
functionality and technological capability.
American Safety
Insurance
inpractice
policyadministrationandratinG
American Safety Insurance has improved operational effciency with Accenture Duck Creek
theaccentureduckcreek
softwaresuitehadthe
rightmixoffunctionality
andtechnological
capability
American Safety improves operational effciency with Accenture Duck Creek software
Overview
Solution:policyadministration
andrating
Benefts:increasedeffciency,
reducedmanualprocesses,reducedit
spending,moreaccuratedata
Technologies:accentureduckcreek
policyadministrationandrating,
microsoft.net
Partner:accentureduckcreek
www.onwindows.com
prierrorquandograecisne,aperiamsapienteex
has.inridensvivendointerpretarisper,anubique
ceteroscriaperiamtequando
Gordon Esmond Freye, Microsoft
45
inpractice
Crdit Agricole
Centre Est
cloudcomputinG
Content is selected froma playlist and then
displayed in the branch on high-quality
displays. The systemof Dell Wyse thin
clients allows broadcasting images on single
displays, on a giant display or on a display
wall. Thin clients provide a professional
concept; regardless of the display requirement
of the branch, they allowmeeting all possible
configurations. For example, in a branch
located in a big commercial complex, we have
installed a 10m
2
-display, comments Deroche.
The reliability that was sought at the start
of the project has certainly been achieved.
The dynamic on-site display system works
fluidly in all the branches without needing
maintenance interventions and travel for
Deroches team. In the event of a network or
electrical problem, the system automatically
restarts as soon as the problem is resolved.
No on-site intervention is required.
The choice of Dell Wyse thin clients in
dynamic on-site displays allowed Crdit
Agricole Centre Est to remove operational
expenses. Its previous PC system involved
significant maintenance and ownership
costs. The cost of monitoring a PC works
out to about 250 EUR per year, says
Deroche. Today, this cost doesnt exist.
Maintenance costs are effectively eliminated
with Dell Wyse thin clients. This project
represents only an investment cost.
Thin clients have a life cycle of five to
seven years, longer than that of PCs, which
is another advantage in budgetary terms.
Since thin clients are small, they can be
placed anywhere, even in a false ceiling.
Their reliability moreover allows the
dynamic on-site display to work without
generating any new workload for branch
employees. Most of themchose to leave
the systemto work independently. In
addition, programming and planning work
remains minimal. Today, the systemis being
managed by the Research and Innovation
department, and eventually, it will be
handled by the distribution teams.
Dell Wyse thin clients use 10 times
less electricity than PCs do. Moreover, the
dynamic advertising system enables the
communication of numerous amounts
of information in a paperless manner. All
of this contributes to limiting the carbon
footprint of the company that is engaged in
a high ecological quality approach.
In keeping with the dynamic digital
advertising project, Crdit Agricole Centre
Est is preparing a touch screen advertising
project. The objective is to delete all paper
brochures on banking products in the
branches and replace them with touch
screen displays, with the same information.
Thin clients used for the dynamic
advertising will also be used to broadcast
touch screen on-site advertising information.
Thus, the same Dell Wyse equipment will
allow Crdit Agricole Centre Est to deploy
two major advertising projects and thus
revolutionise habits in this domain, which
were historically paper-based. We expect
a very quick ROI on this project, says
Deroche. It will allow significant savings
in terms of paper, delivery and travelling
in relation to traditional advertising. Many
significant expenses will disappear.
Crdit Agricole Centre Est, one of the 39
independent regional banks of Crdit
Agricole, has 300 branches with 3,000
employees serving 1.2 million customers.
With a strong historical network in the
rural environment, the Centre Est bank
is renovating and equipping its branches
throughout the Rhne, Ain, Sane et
Loire, the north of the Isre and Ardche
French departments, as well as a part of
the borders with Switzerland.
Since 2010, the Research and Innovation
department has been installing a dynamic
on-site display systemin its branches.
When completed, it will allowthe 300
branches to broadcast corporate information
and advertisements together with local
announcements, such as partnerships or
events. Each branch will be able to select
the content it wishes to broadcast. It will
also enable branches to target information
appropriate to the displays location (such as a
waiting area or consultants office, for example).
We were looking for a solution that
suits the large geographic spread of our
network of branches, says Yel Deroche,
research and development manager at
Crdit Agricole Centre Est. Travelling
for maintenance, which quickly amounts
to hundreds of kilometres in this region,
absolutely needed to be limited. That is why
we wanted to invest in a system bringing
flexibility combined with solid reliability.
Robust security systems were added to this:
since the tools used for the dynamic on-site
displays are integrated into the companys
information network, the chosen solution
had to be immune to viruses and guarantee
program stability. We went in the opposite
direction from what had been previously
done in dynamic on-site display, Deroche
continues. We immediately crossed off
a solution based on PCs, given the risk of
breakdown with PCs, as well as potential
security issues posed by user intervention.
The Research and Innovation teamopted
for Dell Wyse thin clients. Weve adopted
Dell Wyse thin clients within all branch
configurations, fromsingle displays to giant
displays or display walls, says Deroche. For
dynamic advertising, theyre indispensable.
Crdit Agricole Centre Ests dynamic on-site
display systemrelies firstly on approximately
50 Dell Wyse R90L thin clients equipped
with local processors and powerful graphics,
as well as multiple display support. As the
deployment progresses, the Dell Wyse
R90L7 model, which is based on Microsoft
Windows Embedded Standard 7, is being
installed, providing additional storage space
on its Flash memory.
To date, about 100 of themare supplying
the dynamic on-site display for more than
70 branches. Thin clients connect to servers
located at the head office using intranet-type
architecture. Proprietary software based on
Microsoft technology was developed by the
local IT teamto clone and prepare images.
French bank launches dynamic on-site advertising with Dell Wyse cloud client computing
Dell Wyse thin clients have allowed Credit Agricole Centre Est to reduce operational expenses
Overview
Solution: cloudcomputing
Benefts:eliminatedmaintenance
costswiththinclients,increased
lifecyclein,fastreturnoninvestment
Technologies:dellwyser90land
r90l7,windowsembeddedstandard7
Partner:dell
www.onwindows.com
Join the cloud computing uprising
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Touch_2011_we_demand.indd 1 2/3/11 13:52:53
DenizBank is a Turkish bank that provides
a range of financial services to consumers,
businesses and government organisations.
It employs 11,254 people and has 610
branches in Turkey.
As consumer debt continues to rise,
DenizBank, like many financial institutions
today, has hadto increase its focus ondebt
collectionandfinda way of making its
processes as efficient as possible. Until recently,
the bank handledmany of its collection
processes manually. Lists were compiledby
staff andthere were inconsistencies interms of
whencustomers were contactedandhowdebt
problems were resolved.
To alleviate issues like this, Turkish
software provider Intertech has developed
inter-Collect to support financial institutions
debt collection processes. Using inter-Collect,
companies can develop a clear collection
strategy. They can segment problematic
accounts, determine collection actions, set
parameters on howand when to contact
customers and allocate resources accordingly
to maximise debt collection.
We use cutting-edge data modelling and
optimisation techniques to manage debt
collection problems, which are complex by
nature and are gaining much more attention
in the private sector, especially banks, says
mer Uyar, general manager at Intertech.
To optimise their operations, DenizBanks
managers needed to enhance agent
performance, providing process improvements
to balance effectiveness with efficiency. Their
goal was to increase the productivity and
quality of customer contact, without adversely
impacting agent retention levels or contact
rates. With inter-Collect, DenizBank is taking
advantage of the in-built collection models in
the solution, which are based on data mining
and optimisation techniques.
Using inter-Collect, DenizBanks collection
department can get in touch with customers
even before the first collection date is due.
If this date is missed by the customer then
inter-Collect guides themthrough the
collection process stage by stage to the point
of completion when the debt is either
recovered or a legal process is set in motion.
inter-Collect takes into account a variety of
considerations and determines the answers
to the following questions: which debtors to
approach; what actions to take; who is going
to take action; and when to take action. Each
query then takes into account the following:
information: information about the debtors
include the amount of debt they have; the
nature and status of debtor to determine
howlikely they are to settle their debt; the
availability of resources within the banks
organisation; and complications that may
impact processes, such as legal action.
By optimising its collections process,
DenizBank has been able to reduce the costs
involved in its collection process. It can identify
the most effective way to allocate resources,
it can assess the cost/benefit of pursuing
individual debts and it is increasing overall
debt recovery by improving its communication
methods and optimising its activities.
Following the successful implementation
of inter-Collect at DenizBank, Intertech is
nowplanning to make this solution generally
available for other financial institutions to take
advantage of.
DenizBank
inpractice
deBtcollectionmanaGement
Turkish bank is using Intertechs inter-Collect solution to improve its debt collection processes
Overview
Solution: debtcollection
management
Benefts: reducedrunningcosts,
optimisedcollectionactivities,
improvedcollectionseffectiveness,
increasedtotalrecovereddebts
Technologies:inter-collect
Partner:intertech
www.onwindows.com
siGninGout
49
partners
season2010
Sponsors
Industry Partners
Publishing Partners
elaboraretmeieu.
elaboraretmeieu.
elaboraretmeieu.
In an age where we use our mobile phones
and the internet more than we watch TV, and
where bookstores, video rental stores and
other mainstays of physical retail commerce
are morphing into digital forms, banks are
looking increasingly out of touch. Indeed,
according to Brett King, banking doesnt just
need a makeover, it needs a complete reboot.
You have quite strong beliefs that there is no
longer a place for bank branches. Why is this?
In the UK theres already half the number of
branches than there was in 1990 and, although
other markets are not quite experiencing the
same rate of decline, theyre certainly heading
that way. By 2016, the average customer will
be using their phone for mobile banking or
payments once a day, say 20 to 30 times a
month on average. Theyll be using a tablet or
internet banking on a PC or some other screen
seven to ten times a month. Theyll be visiting
an ATM three times a month. That makes
around 400 digital interactions with a bank
brand via technology in a year.
For most of the retail banking consumer
base in developed countries, this will translate
to perhaps one visit to a branch annually but
for most they wont visit a branch at all. For
the remainder of customers, the average will be
two to three times a year. If you are a bank and
you are relying on that one visit or even three
visits a year to provide great service and build
a relationship with your customer you are in
deep trouble. The digitally-enabled competitor
has 400 times the relationship power you have.
Its for this reason that I believe that the rapid
decline of the branch is inevitable.
So what would you say to those who believe
that the branch is important in order to
maintain a face-to-face relationship?
That assumes that a digital experience is
inferior to face-to-face, and while that may have
been true in the past, thats not going to be
the case in the future. Customer behaviour is
changing and, like weve seen in the publishing
and music industries, digitalisation is taking
over. Banks need to accept this.
But isnt a branch important for more
complex products?
Customers today are wary of complexity and
advice, and the reality is that most customers
dont actually receive real advice in a branch.
What a banker might call advice the cross-
sell and upsell is not advice from a customer
perspective. True, unsolicited advice that helps
the customer without expectation of revenue
is very rare in the branch space because there
is simply no metric in the system that allows
for this. Also, many banks point towards the
branch as being necessary for selling complex
products such as mortgages. But customers
dont have any alternative as the majority of
banks dont offer this sort of product online.
Banks think that their products are special, but
this is where theyre mistaken. We dont buy a
mortgage, for example; we buy a home.
Youve just launched the purely mobile bank
Moven. What is the thinking behind it?
I believe the pendulum needs to swing back
to helping customers, and help is best given
when and where the customers need it.
Aimed at digital natives (those who have
grown up with the internet), it has been
designed for mobile from the ground up.
Customers simply attach a contactless sticker
to their mobile phone and theyre away. They
can pay for goods using their phone and
see their account balance before and after a
purchase in real time on the screen.
Not only this, but with the Moven solution,
customers can see how much theyve spent
in a certain outlet over a specific period. Say
a person buys a coffee and a croissant every
morning in their favourite coffee shop. Our
solution will tell the customer that theyve
spent 150 that month in that outlet, maybe
sparking a change in their behaviour. This
is a massive advantage compared to plastic
and cash. This is where personal finance
management is really going to come into its
own. Real-time personal financial management
is advice at scale, potentially. Its about helping
customers to live their financial life well, every
day. Thats real advice.
thedigitally-enabled
competitorhas400timesthe
relationshippoweryouhave.
itsforthisreasonthatibelieve
thattherapiddeclineofthe
branchisinevitable"
Brett King is the bestselling author of Bank 3.0, Why Banking is No Longer Somewhere You Go, But
Something You Do and the founder and CEO of New York-based Moven, the worlds frst direct mobile-
only retail bank. Lindsay James took some time out of his busy schedule
BrettKing,moven
The reboot of banking
50
partners
season2010
Sponsors
Industry Partners
Publishing Partners
elaboraretmeieu.
elaboraretmeieu.
elaboraretmeieu.
FoW Spring 11.indd 65 12/05/2011 10:03

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