Romania’s fourth-largest bank
Banca Transilvania is to implement a universal core banking system,
Flexcube from Oracle. Flexcube will support the bank’s four main
business lines – retail, corporate, SME and health care financing –
and replace the existing Misys system over the next 18 months.
Douglas Blakey reports.
Banca Transilvania
will implement Oracle’s Flexcube core banking system to service its
1.5m customers, sixm accounts and network of over 520 branches.
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Following a two-year evaluation
process, Banca Transilvania opted for Flexcube to replace its
existing Bankmaster system from Misys.
Banca Transilvania CEO Robert
Rekkers told RBI the bank received proposals from “the
usual suspects”.
Rekkers said the bank needed an
integrated, efficient, cost-effective, and modern international
system to support its expansion and address challenges such as
risk, compliance, and improving the customer experience.
Flexcube will service Banca
Transilvania’s four main business lines – retail, corporate, SME
and health care financing.
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By GlobalDataAlthough the contract with Banca
Transilvania was signed as recently as late December last year, the
implementation work has already begun.
A full-time project team from the
bank involving managers from the four business units and senior IT
staff comprising around 30 people in total will work on the
project.
Banca Transilvania and Oracle have
an existing business relationship, with the lender using the
vendor’s Financials and Exadata system, the latter a Sun/Oracle
development for data warehousing and online transaction processing,
deployed in early 2010.
“We have been very happy with that
acquisition and are already using it in a number of applications –
the performance is excellent,” said Rekkers.
The Flexcube agreement is the
biggest IT deal signed by the bank since it agreed to implement a
card processing system, Smartvista, from BPC Banking
Technologies.
According to Rekkers, that software
has boosted the bank’s successful card transactions ratio to nearly
90%, a big increase compared to the system from its previous
supplier.
Rekkers added: “Flexcube is an
investment in cutting-edge technology, enabling us to continue to
take advantage of our current growth, while also expanding through
our ability to launch new products and services to our customers
quickly.
“Banca Transilvania was looking for
an integrated solution for core banking that was based on new
technologies, and that would be capable of sustaining our
development for years to come.”
Frank Brienzi, senior
vice-president and general manager of the Oracle Financial Services
Global Business Unit, said: “It is fantastic news that Banca
Transilvania has chosen to build on an already strong relationship
with Oracle, by moving its core banking platform to Flexcube.”
“We feel very privileged and
excited about working with such a vibrant and growing bank.”
Oracle has two other Flexcube users
in Romania: the local units of Greece’s Eurobank EFG and Credit
Agricole’s Emporiki subsidiary.
Rekkers concluded; “It is important
for us to be at the forefront of the intersection between banking
and IT.”
“Although the crisis is not yet
over – it is not yet springtime in Romania – we want to invest in
the future and continue to grow the business.
“The cards sector will continue to
grow at double digit rates, in operations, transactions, card
acquisitions and POS.” As for the suggestions that Banca
Transilvania could once again be eyed up as a potential takeover
target, Rekkers was relaxed.
“I have nothing against being an attractive unmarried lady but
takeover is not a subject on my mind on a daily basis,” he
said.
See also:Banca
Transilvania posts strong 9M10 results
