1. New Generation Core Banking System For Sustained Growth
A Solution with Temenos T24
Nguyễn Hướng Minh
Deputy Director
Center for Technology based Product Development and Application
Techcombank

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

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

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

5. Weave Business and IT Strategies Together
IT strategies flow from bank strategic intent

6. Align Core System Strategies to Business Imperatives
Sample Business Needs
Develop new products quickly and reduce time to market
Enhance customer satisfaction by enabling 24*7 banking
Improved servicing for customer transactions
Reduce costs and drive economies of scale through shared best practice
Sample IT Implications
Systems must be flexible to provide for parameterization by which new products /services can be added without major modifications
Provide range of offering on alternate channels –Internet , ATM’s , mobile banking etc
On Line STP with automated exception handling
Robust and scalable systems enabling huge amounts of transaction processing

7. Customer Centric Operating Model

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

9. Selection Evaluation Criteria
Vendor / Partner track record and expertise
Technology Platform
Open Architecture
Integration flexibility with in house and third party
Scalability and future proof
Application security
Functionality “fit “/richness

10. Temenos – A Company Profile
500+ institutions, 600+ live locations
Number of Clients

11. Temenos Vendor being a solution partner
Providers
Reactive
Task orientation
Short term
Partners
Proactive
Solution orientation
Long term

12. T24 Core Banking System Open Standards “Best of Breed” Practices
Open platform
Open database
Open J2EE application server
Integrated
Customer relationship management (CRM)
Centralized common processes
Consolidated Global Customer View (Know Your Customer)
Centralized Risk Management
Parameter Driven
User Customizable - Independent of supplier
Rapid time to market
“Best of Breed” Practices
Decades of banking experience backing core applications & processes
Mission critical
24 * 7 * 365
No End of Day Batch processing
Investment protection
Development philosophy - upgrade policy
Long term strategy

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

14. Techcombank Upgrades to T24R5
Project Milestones
Undertaken in October 2005
Non stop capabilities & Multi –Server modules achieved
Project completed in 8 weeks

15. Techcombank “before” and “after” T24 Upgrade
Multi-server Architecture
Non-stop Processing
Improved Performance Enabling Growth
Multi- book AZ
Before
Single Server Architecture
End of Day Batch Window
Performance Limits Reached
Multi-company
LD/ PD

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

17. Thank you!