Banking BPO

Sabeen Siddiqui Page 1

BANKING BPO

Delivering the Business Value of Workplace Solutions for Banking-BPO-2010

Banking BPO

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Table of Contents 1. Banking Business Process Outsourcing /Banking BPO ............................................................................................................................................... 4

1.1 What should BPO be delivering in future? .............................................................................................................................................................. 5

1.2 Four General Approaches to BPO Banking .............................................................................................................................................................. 6

1.3 Don’t Ignore IT implications of BPO ......................................................................................................................................................................... 7

1.4 Move to Holistic, Global Approach to BPO ............................................................................................................................................................. 8

2. BPO Banking Business Model .................................................................................................................................................................................... 9

2.1 Organizations need to be intentional in selecting their sourcing approach model .............................................................................................. 10

2.2 Adoption of multiple sourcing is transforming the operations model of enterprises ........................................................................................... 11

2.3 Preparing For Operational Model - Key Data Component .................................................................................................................................... 12

3. BPO Banking Pricing Model ...................................................................................................................................................................................... 13

3.1 What is Transaction Based Pricing? ................................................................................................................................................................... 13

3.2 Is Transaction Based Pricing Suitable for Any Business Process? .......................................................................................................................... 15

3.3 Challenges in Adopting Transaction Based Pricing ................................................................................................................................................ 17

4. Banking BPO Services & Solutions Perspective ........................................................................................................................................................ 18

4.1 Most Common BPO Banking Services ............................................................................................................................................................... 18

4.3 What you are actually buying…more Solutions in the future ................................................................................................................................ 20

4.4 Full BPO Banking Solutions Overview .................................................................................................................................................................... 21

4.5 Full BPO Service Overview ..................................................................................................................................................................................... 22

4.6 New Services in Evolution ...................................................................................................................................................................................... 23

4.7 Proposed Business Process Outsourcing Banking Services.................................................................................................................................... 24

5. Local Banking BPO Service Providers ....................................................................................................................................................................... 25

6. International Banking BPO Service Providers .......................................................................................................................................................... 29

Banking BPO

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6.1 Plethora of new global suppliers ........................................................................................................................................................................... 30

6.2 Current and Future BPO Delivery Locations .......................................................................................................................................................... 31

7. Market Analysis ........................................................................................................................................................................................................ 32

8. Pakistan Banks Overview ......................................................................................................................................................................................... 33

8.1 Pakistan BPO Market Overview ............................................................................................................................................................................. 38

8.2 Banks-Market Overview ......................................................................................................................................................................................... 39

8.4 Core Banking BPO Vendors .................................................................................................................................................................................... 45

9. Reference- Case Study BPO Banking ........................................................................................................................................................................ 52

10. Land Escape BPO Banking ...................................................................................................................................................................................... 59

Banking BPO

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1. Banking Business Process Outsourcing /Banking BPO

Banking Business Process Outsourcing or Banking BPO is a highly specialized sourcing strategy used by banks and lending

institutions to support the business acquisition and account servicing activities associated with the customer lending lifecycle.

These specific BPO services are usually offered through multi-year service level agreements for all or portions of the credit card

lending, consumer lending or commercial lending segments of the financial services market. Some larger financial services

organizations choose to extend their sourcing strategy to include other outsourced services such as ITO systems and software, HRO and benefits services, finance and accounting outsourcing (FAO) services, procurement or training outsourcing.

Banking BPO Services are typically defined by industry analysts, advisors and leaders in the sourcing industry, such as the set of discrete processes or transactional activities that support the lending lifecycle as follows:

New customer acquisition services include telemarketing activities, application processing, underwriting, customer

or merchant credit evaluation and verification, credit approval, document processing, account opening and customer

care and on-boarding.

Account servicing processes for credit cards or consumer loans. These most commonly include payment processing

systems and services, customer service or call center support operations (voice, digital, email and mail services),

product renewals, and loan disbursement; document management services such as printing and mailing of statements,

networked printing and storage solutions; collections, recoveries processing, default management, risk management and

foreclosure.

Consumer and commercial lending post origination transaction processing services, such as check processing,

clearance and settlement services, remittance, and records management.

Back office transaction process management for loans or credit card portfolios, including custody services, fraud

mitigation and detection, regulatory and program compliance, portfolio analytics, reporting, conversions, management

of technology platforms, interface for customer data and custom development.

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1.1 What should BPO be delivering in future?

SERVICE

BENEFITS/OUTCOME

Human

Resources

Minimize errors in payroll

Decrease time to recruit

Finance &

Accounting

From 7 days to 2 days to close your books

Reduction in Day Sales Outstanding Procurement Vendor and Consolidation management

Ability to capitalize on negotiated discounts Customer

Management

Pay by results for sales

Staffing flexibility on peaks and troughs

Banking From 4 to 2 hours to manage the days mail .

Insurance From 30 to 10 minutes to open an insurance claim

Airlines Reduction in time and greater accuracy to reconcile

ticketing receipts

Banking BPO

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1.2 Four General Approaches to BPO Banking

Banking BPO

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1.3 Don’t Ignore IT implications of BPO

Banking BPO

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1.4 Move to Holistic, Global Approach to BPO

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2. BPO Banking Business Model

Over the years, different models have been used for conducting business in BPO. The regular outsourcing models of on-shoring,

near-shoring and offshoring are seen in BPO as well. TPI, a sourcing advisory, has observed that in addition to on-shoring, near-shoring and offshoring, BPO operations are also conducted through the following three business models:

» Transactional BPO: Transactional BPO handles one aspect of a process only. The customer has to carry out a

significant part of the process in-house and hence the customer owns the risk of the process. Also, outsourcing many

aspects of the process in a transactional mode leads to complex fragmentation which can pose as a threat to productive

delivery.

» Niche BPO: A niche BPO carries out 3-4 aspects of a process. A niche BPO, which also makes certain investments in the

customer's process, aims at improving the efficiency of the process. The vendor in a niche BPO works in close

coordination with the buyer, sometimes seeking the services of the customer's employees. Both the vendor and the

buyer share the risk of the process.

» Comprehensive BPO: A comprehensive BPO handles both transactional and administrative tasks in a process and takes

70 percent responsibility of the output. The vendor purchases the buyer's assets and also hires most of its employees. Comprehensive BPO has bulk deals lasting for 7-10 years.

Banking BPO

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2.1 Organizations need to be intentional in selecting their sourcing approach model

Banking BPO

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2.2 Adoption of multiple sourcing is transforming the operations model of enterprises

Banking BPO

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2.3 Preparing For Operational Model - Key Data Component

Banking BPO

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3. BPO Banking Pricing Model

3.1 What is Transaction Based Pricing?

Transaction - is a sequence of steps with defined input and output, which achieves a business purpose. In other words, it is

another name for business process or sub-process. Examples of transaction include payroll processing, invoice processing, etc.

Transaction Unit - is a unit of measure with which a transaction can be objectively measured. Examples of transaction unit are

'per payslip' for payroll processing transaction, 'per invoice' for invoice processing transaction, 'per purchase order' for purchase

order processing transaction.

Transaction based pricing refers to a type of pricing where a deal is priced on the basis of number of transactions that service

provider processes for a customer. More the number of transactions processed by service provider, more is the payment and

vice versa. It is similar to the way payment is made by consumers to electricity companies - amount paid varies depending

upon consumer's usage of electricity, measured in units.

Since, in transaction based pricing, service provider is paid on the basis of number of transactions processed, it is important to

determine the mechanism by which transactions can be distinctly determined and objectively measured. This is typically

achieved via 'transaction unit'. Determining the right transaction unit, therefore, is important in transaction based pricing.

Transaction unit is usually determined by identifying the unit that best represents the underlying transaction - in terms of

operational processing and the costs related with processing that

transaction. In transaction based pricing, what and how many resources are involved and how much time is taken to process

the transaction while also meeting quality and service level agreement (SLA) requirements, are the variables that are typically

managed by service provider. This essentially means that variability and risk associated with customer's

business activity is transferred to service provider. Service provider manages this risk by utilizing resources efficiently across

multiple customers and by charging an appropriate risk premium in the transaction price. In addition, service provider is

motivated to maximize output or number of transactions processed with same or lesser input, which typically leads to

innovation and better use of technology resulting in lesser cost for customer in the ultimate analysis.

Transaction price is typically quoted as “price per transaction unit”. For example, for payroll processing, the transaction price

may be quoted as “x dollars per payslip”; or for invoice processing, the transaction price may be quoted as “y dollars per

invoice”. However, since business activity does not remain at a constant level throughout, there needs to be a mechanism

which can determine how the transaction price varies for different levels of business activity.

To address this, transaction price is generally mentioned as applicable for a specified transaction volume range. Such a volume

range is known as 'dead band' which is typically derived by analyzing historical transaction volumes data.

For variations in transaction volumes beyond the dead band, a negotiated increase or decrease in price becomes applicable.

Usually ARC/RRC (Additional Resource Charge/Reduced Resource Credit) framework is used to arrive at the price outside the

dead band. A simplified explanation of the ARC/RRC mechanism is provided with the help of an example below:

Example:

Let us assume that:

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lT transaction Price is $4 per unit

lBase Volume is 20,000 units

lFor variation within +/- 10% of the base volume, there is no change in price

lFor variations > 10% and < 20% from the base volume, the ARC/RRC price is $ 3.5

With this, let us see how the effective price payable by the customer changes with change in volume. The effective

price is calculated using the following formula:

Month Volume Transaction Price

Calculation

Effective Transaction

Price

Month 1 20,000 (20,000*4)/20,000 4

Month 2 22,000 (22,000*4)/22,000 4

Month 3 18,000 (18,000*4)/18,000 4

Month 4 24,000 (20,000*4+4000*3.5)/24,000 3.92

Month 5 16,000 (20,000*4+4000*3.5)/16,000 4.13

Month 6 23,000 (20,000*4+4000*3.5)/23,000 3.94

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3.2 Is Transaction Based Pricing Suitable for Any Business Process? From customer‟s perspective, transaction based pricing is favored for business processes which can be clearly defined,

measured in discrete units, have a well defined and measurable service level requirement (which remains stable even if number

of transactions or users fluctuate), have fairly accurate baselines and experience fluctuations in consumption.

From service provider‟s perspective, the ability to deliver profitably in transaction based pricing scenario is tied to achieving

volume and scale. Therefore, this type of pricing is usually favored for business processes that are standardized, transaction-

intensive and demand-driven.

In practice, therefore, transaction based pricing is suitable for business processes or transactions that have the following

characteristics:

• Well Defined: Transaction should be such that both service provider and customer understand what it constitutes and what is

excluded from it.

• Measurable: Transaction should be such that it can be easily measured for operations processing and performance and is

auditable by service provider and customer for accurate and timely counting of transactions that serve as the basis for billing.

• Volume Driven: Transaction should be of short duration and carried out repeatedly in sufficiently large volumes.

• Standardized: Transaction should be amenable to high level of standardization - standard inputs, rule-based processing and

standard output - so that service provider is able to derive economies-of-scale via automation and delivery of similar services to

multiple customers.

• Demand Variability: Transactions where volumes vary in a short span of time are more suited to be priced via

transaction pricing mechanism than via any input-based mechanism.

An indicative list of business processes (with commonly used transaction units) that possess the above-mentioned

characteristics and are, therefore, amenable to transaction based pricing, is provided below:

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Function/Vertical Business Process Transaction Unit

Human Resource

Management

Payroll Processing

Recruitment

Travel Planning

Expense Management

Payslip

Recruit

Booked trip

Expense report

Finance

&Accounting

General Accounting

Accounts Payable

Account Receivable

Fixed Assets

Journal or chart of account entry

Invoice

Invoice% of collection

Fixed assets line item

Mortgage Lead Generation

Loan Processing

Loan Servicing

Collection

Lead

Loan application

Loan

%of collection ,invoice

Insurance Policy Issuance

Claims processing

Bills/payment processing

Collection

Policy issued

Claim

Invoice

%of collection

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3.3 Challenges in Adopting Transaction Based Pricing

While, there are significant benefits from transaction based pricing for customers and service providers both, there are a few

challenges, discussed below, that one needs to be aware of:

lComplexity: Designing transaction based pricing model is complex and requires a good understanding of transactions and

their cost structure by both customers and service providers - right transaction, scope, unit of measure, cost determination,

etc.

lPredicting Volumes: Predicting future transaction volumes with reasonable level of accuracy, providing minimum volume

commitment for economies-of-scale and planning for volume variations is a complicated exercise that only a few customers are

able to perform in a systematic and consistent manner.

lLack of Availability of Benchmarking Data: Lack of availability of reliable external benchmarks, in addition to unreliable

internal benchmarks, hamper customers‟ ability to ascertain commercial competitiveness of service provider quotes.

lLack of Standardization: Lack of common technology and operational business processes within customer organization limits

service providers‟ ability to achieve standardization and associated cost effectiveness.

lLoss of Control: Since day-to-day resource decisions and productivity information are not apparent to the customer, there is

a perception that transaction based pricing leads to loss of control.

lOrganization Change: Transaction based pricing leads to changes in quite a few areas like budgeting (tracking inconsistent

monthly/quarterly service cost); corporate finance (ensuring that invoices reflect accurate charges and credits); functional

departments (effecting business process change); all departments (inculcating demand forecasting practices).

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4. Banking BPO Services & Solutions Perspective

4.1 Most Common BPO Banking Services

Banking BPO

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Banking BPO

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4.3 What you are actually buying…more Solutions in the future

Banking BPO

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4.4 Full BPO Banking Solutions Overview

Banking BPO

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4.5 Full BPO Service Overview

Banking BPO

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4.6 New Services in Evolution

Banking BPO

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4.7 Proposed Business Process Outsourcing Banking Services

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5. Local Banking BPO Service Providers

Company City Services Offered (Abbreviation Key)

Accountancy Outsourcing Services Lahore

AC

Apvision Karachi CC

Axact Karachi CC AC

DE

Axiom Islamabad CC

DE

DD

BAS Rawalpindi CC

Brain Storm Lahore

MT

C-3 Karachi CC

Call Central Islamabad CC

Catcos Inc Karachi CC

Cerebrum Technologies Karachi CC

Datels International Rawalpindi

AD

Digital Processing Systems Islamabad CC AC MT

DE HR

eMed Technologies Lahore

MT

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Ensign Communique Karachi CC

Eplanet Communications Karachi CC

MT

Etilize Pakistan Karachi

DE

Geoconsult Karachi

GC

Global Contact Centre Lahore CC

Hauka Karachi CC

MT

DE

CP DD

LT

Information Transformation Services Rawalpindi

GC

Jeem Solutions Karachi CC

MT

DE HR

Katz Communications Lahore CC

Medical Transcription Billing Company Islamabad

MT

Mindbridge Lahore CC

MPS Call Center Lahore CC

NBA Computers Karachi CC

DE

Nortec Karachi CC

MT

DD

Ovex Technologies

Islamabad

Lahore

Karachi

CC

CP

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Post Amazers Karachi

AD

R2V Services Islamabad

GC

Rapid Response Islamabad CC AC

RegTel Enterprises Lahore CC

Sabri Niazi Technologies Islamabad CC

Sharp Image Karachi

AD

SKP Consulting Lahore

AC

Sybrid Karachi CC

MT

DE HR CP

Systems

Lahore

Karachi

AC

DE

DD

Techno Beavers Lahore

AC

Tekbuzz Call Solutions Karachi CC

MT

Teknotronics Karachi

AC

DE

CP DD

The Resource Group (TRG) Lahore

Karachi CC AC

Touchstone Communications Islamabad CC

TransData Lahore CC

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Verticity Karachi

HR

Voxel Communications Islamabad CC

Web Dynamics Lahore

AD

Wireframe Interactive Lahore

AD

World Bridge Connect Lahore CC AC

Abbreviation Key

CC Call Center

HR HR Services

AC Accountancy

CP Claims Processing

MT Medical Transcription

DD Document Digitization

AD Animation Development

GS GIS/CAD

DE Data Entry

LT Legal Transcription

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6. International Banking BPO Service Providers

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6.1 Plethora of new global suppliers

Banking BPO

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6.2 Current and Future BPO Delivery Locations

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7. Market Analysis

BPO deals mainly with non-core processes of an organization. Some of these processes are:

» Administrative support

» Customer relationship management

» Document processes

» Finance and accounting

» Human resources and training

» Intellectual property research and documentation

» Legal services

» Medical transcription

» Payroll maintenance and other transaction processing

» Product development

» Publishing

» Research and analysis

» Sales and marketing (including telemarketing

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8. Pakistan Banks Overview

Personal Banking - Standard Chartered Bank Pakistan

Description: Standard Chartered Bank provides personal and business banking services in Asia, Africa, the Middle East, UK, Europe

and the America - Your right partner for banking.

United Bank Limited Pakistan

Description: With over 1400 domestic branches all over Pakistan and 19 overseas branches UBL is one of the largest banks in

Pakistan.

MCB Bank

Description: MCB is one of the leading banks of Pakistan with a deposit base of about Rs. 280 billion and total assets of around Rs.300

billion. The Bank has a customer base of approximately 4 million, a nationwide distribution network of over 1,000 branches and over

450 ATMs in the market.

Allied Bank Limited

Description: Established in Lahore in 1942 before independence, Allied Bank Limited is one of the largest bank in Pakistan with more

than 700 Branches connected to an online network. In August 2004 the Bank was restructured and the ownership was transferred to

Ibrahim Group.

Habib Metropolitan Bank

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Description: Habib Metropolitan Bank Pakistan is a private bank operating in all major cities of Pakistan with primary focus on retail

banking and trade finance.

Bank Alfalah Limited

Description: Bank Alfalah Limited was incorporated on June 21st, 1992 as a public limited company under the Companies Ordinance

1984. The Bank is currently operating through 195 branches in 74 cities, with the registered office at B.A.Building, I.I.Chundrigar,

Karachi.

Bank AL Habib

Description: Presently, the Bank has a network of Two Hundred And Fifty Four branches in all the major cities of Pakistan and abroad

fully automated and computerized and providing wide range of banking services.

Askari Bank

Description: Established in 1992, Askari is backed by the Pakistan Army Welfare Trust.

HBL

Description: HBL has the largest domestic branch network with over 1,400 branches and is present in 25 countries.

HSBC Bank Middle East Limited - Pakistan

Description: HSBC is one of the largest banking and financial services organisations in the world. HSBC's international network

comprises over 9,500 offices in 85 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and

Africa.

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RBS The Royal Bank of Scotland - Pakistan

Description: Personal banking, wealth management, credit cards, loans, investments, insurance, NRI and commercial banking services

from RBS Pakistan.

KASB Bank Limited

Description: KASB Bank through its network of 73 branches in 21 major cities of Pakistan offers unique and innovative financial

solutions to a large portfolio of investment, corporate and consumer banking customers. The Bank has been assigned medium to long

term entity rating by PACRA of A (Single A) and short term rating of A1 (Single A One).

NIB Bank

Description: The 7th largest bank in Pakistan branch wise, NIB bank provides services to more than 675,000 customers through a wide

branch network of 224 branches. It is one of the fastest growing banks in Pakistan.

Arif Habib Bank Ltd

Description: AHBL is one of the fastest growing Commercial Banks of the country supported by the strong sponsorship of Arif Habib

Group. The Bank has an Authorized Share Capital of 6.0 Billion and Paid-up Share Capital of 5.0 Billion. The Bank has a network of

38 Branches/Sub Branches. The branch network covers Sindh, Punjab, NWFP, Balochistan and Azad Jammu and Kashmir. The Bank

plans to open further offices to better cover all four provinces within a short time span.

JS Bank Limited

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Description: JS Bank Limited is a subsidiary of the JS Group, which is one of Pakistan’s most diversified and progressive financial

service groups. Presently JS Bank has laid its footprint across metropolises of Pakistan with plans to expand its outreach with more

branches nationwide this year.

Soneri Bank Limited

Description: Opened doors for operations in Lahore on April 16,1992 followed by Karachi branch on May 09, 1992. The bank now

operates with 131 Branches spread all over Pakistan including the Northern Areas of the country where no other private bank has

ventured so far..

Silk bank

Description: Silkbank stands for reliability, our institutional sponsors Nomura, IFC and Bank Muscat provide us with strong financial

backing and a framework of good corporate governance, which will remain our guiding principle to cultivate trust and transparency

with our customers, regulators and partners.

Samba

Description: Samba Bank Limited, formerly Crescent Commercial Bank Limited is a majority owned subsidiary of Samba Financial

Group of Saudi Arabia. Our vision is to become a household name in Pakistan by winning customer business through high quality

services and innovative products.

The Bank of Punjab

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Description: Established in 1989, in pursuance of The Bank of Punjab Act 1989 and was given the status of scheduled bank in

1994.The Bank of Punjab is working as a scheduled commercial bank with its network of 272 branches at all major business centres in

the country. The Bank provides alltypes of banking services.

Barclays Pakistan

Description: Barclays in the Pakistan offer a full range of banking services to individuals and corporations.

Atlas Bank Limited

Description: Operating through a growing network of branches across Pakistan, the entire retail network is real-time online, providing

banking convenience, especially for those on the move.

My bank

Description: Mybank Limited was incorporated in 1992 as a Commercial bank. It operates with over 80 branches network all over

Pakistan. The Paid up Capital of the Bank is PKR 5.303 billion, Equity PKR 5.069 billion,Total Assets PKR 38.756 billion.

Citibank Pakistan

Description: Citibank Pakistan has demonstrated its ability to identify market needs and develop products which are unique in concept

and fulfill customer requirements.

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8.1 Pakistan BPO Market Overview

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8.2 Banks-Market Overview

Askari Bank Limited, one of the fastest growing domestic banks in Pakistan, has chosen to implement a wide

range of Oracle Solutions such as Oracle Database, Oracle Fusion Middleware and Oracle Applications

including Oracle FLEXCUBE (core banking system) Oracle Reveleus (risk management system. The project aims to modernize its IT architecture to improve banking operations, business efficiency and customer service.

The specific modules of FLEXCUBE selected for implementation include: ♦ Core

♦ CASA

(Current, Savings and Term Deposits) ♦ Limits and Collateral Management

♦ Consumer Lending

♦ Local Payments and Collections

♦ Fixed Asset Management

♦ Retail Branch

♦ TradeFinance

(LCs & LGs) ♦ Bills and Collections

♦ Treasury:

o Money Markets

o OTC Options

o Foreign Exchange

o Securities ♦ Islamic Banking

♦ Internet and Mobile Banking

♦ FLEXCUBE XML Interface

(For interfacing with Channels likeATM,Visa,PoS etc)

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Oracle is Askari Bank‟s key business partner in this significant effort. On the database side, Oracle Database Options like

Oracle Database Vault, Advanced Security, Data Masking and Audit Vault will provide data Security to address auditing & compliance guidelines.

On the middleware layer, Oracle Fusion Middleware products like Oracle SOA Suite and Oracle Application Adapter will

enable Askari Bank to seamlessly integrate all its business applications. It will also assist the bank to reduce the time taken

to introduce new schemes or products and reduce cost of manual integration within various business functions

Other business applications to be implemented by Askari Bank include Oracle Siebel Customer Relationship Management,

PeopleSoft HRMS (for human capital management) ,Oracle E-Business Suite Financials and Oracle Maximum Availability Architecture as well for their growing business demands.

Muslim Commercial Bank largest private bank in Pakistan and System Access, a leading global universal banking solutions

provider, are pleased to announce the signing of agreements to select SYMBOLS to run the bank's business operations. The

Bank will be implementing the full suite of the latest version of SYMBOLS Version 8. Muslim Commercial Bank will run

SYMBOLS eFinance modules to deliver personalised services to its customers over multiple delivery channels, while SYMBOLS Enterprise Operations Center will serve as its core banking transaction processing engine.

By implementing SYMBOLS, Muslim Commercial Bank aims to raise the level of its customer service and its time to market

in new product offerings for its three core banking businesses in Corporate, Commercial and Consumer Banking - retaining its market leadership as Pakistan's progressive Bank.

"On the technology front, we are impressed with SYMBOLS's multi-tier architecture. It gives us the scalability for future

growth - a critical consideration in meeting the real-time needs of our extensive ATM network, over 1,000 branch network

and growing online services. The adoption of Java-based technology also provides an added advantage for easy integration of our legacy systems" says Mr. Ali Munir, Senior Executive Vice President, MCB.

SYMBOLS application architecture is centered around a customer relationship management foundation that facilitates customer knowledge, interaction, and relationship development and better management of risk at the customer level.

Commenting on the business benefits, Mr. Ali Munir says, "The customer centric nature of SYMBOLS allows us to enjoy a

complete 360-degree view of our customers' interaction profile across the Bank, with a consistent dialogue between our customers and the Bank across multiple service delivery points."

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"Muslim Commercial Bank requires a proven, scalable system that addresses both speed-to-market for new products and

services with excellent customer service levels across the bank in real-time. SYMBOLS has again proved itself to satisfy

every aspect of technology and functionality as a true universal banking solution." comments Mr. Ramesh Nava, Senior

Vice President, Asia-Pacific Operations, System Access.

System Access will provide implementation, training and support to Muslim Commercial Bank.

MCB Bank Limited, one of the leading financial institutions in Pakistan, has deployed SunGard‟s Ambit Retail Banking and

Ambit Islamic Banking solutions across its network of over 1,100 branches.

MCB Bank uses the combination of the two solutions as the core system to support its business. The Ambit Core Banking

solution is an end-to-end, integrated retail banking platform that consolidates multiple applications and helps reduce IT

overheads. The Ambit Islamic Banking solution helps MCB Bank support a wide range of Islamic banking contracts on a

scalable, client-centric banking platform. These solutions will help the bank strengthen client relationships while increasing

operational efficiency.

Citibank Pakistan has remained one of the leading multi national banks operational in Pakistan. The nineties were the

decade of dominance for Citibank on the banking landscape of Pakistan and this trend continues. Citibank launched Credit

Cards in the Pakistani Market and still is the leading provider of this service. Citibank has primarily maintained the lead by

introducing new services to its portfolio of cards offerings.

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Project Description

Si3's ECXS Payment gateway is a services offering for Virtual acquiring of VISA/MasterCard for Citibank. This initiative brought

Pakistan on the global Ecommerce map and gave the power to Pakistani businesses to transact credit cards online. Si3 offers

full services range within the electronic commerce project life-cycle, from design and implementation to operational support.

Si3's focus on end-to-end solutions, from Upstream Services includes Market Research, Feasibility Reports, and Internet

Surveys through creative Development Process to Downstream Services, helps emerging businesses to transform into e-

businesses

Habib Bank Limited (commonly referred to as „Habib Bank‟) is the largest bank in Pakistan and a thoroughly established

banking chain throughout the world. It has an extensive network of over 1425 branches in Pakistan and 55 international

branches. Technology partnership between TPS and HBL was established in 1998, when HBL decided on acquiring TPS‟

technology to fuel its self service banking motion. TPS assisted Habib Bank in integrating its distributed branch network of over

1400 branches and in rolling out its multi-vendor ATM network together with 1LINK shared switch connectivity. This laid the

basic foundation of Habib Bank‟s self service banking initiative. With TPS EFT solution, Habib Bank has maintained its

technological objective and implemented a reliable and scalable solution to manage one of Pakistan‟s highest EFT transaction volumes, with one of the largest ATM network in Pakistan.

Challenge

_ Replace HBL‟s in-house developed distributed core banking system MOBS, with a centralized banking solution MISYS.

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_ Maintain continuity of the bank‟s ebanking and existing alternate delivery channels without data duplication or corruption.

Result

_ The migration from a distributed to a centralized core banking application was performed and all the branches were migrated successfully and smoothly in a span of 2 years.T Phoenix system gives HBL the

The Phoenix system gives HBL the flexibility to add emerging technologies, such as smartcards, to its processing platform.

Habib Bank has always been initiating innovative and exciting services for it selfservice banking customers. HBL‟s ebanking

features and services are as follows:

• Authorization Interfaces

• Banking Application

• 1LINK

• 1LINK VISA

• CTL Online

Channel Services

• ATM

• Banking

• Mobile Banking

Banking BPO

Sabeen Siddiqui Page 44

Age8.3 8.3 Pakistan Banks News Update

Banking BPO

Sabeen Siddiqui Page 45

8.4 Core Banking BPO Vendors

A NovoDoba core banking

Abit Bankcore - BASSX and BASSX2

Acute Softwares EasyBankCore co-operative banking system

Allshare Banking

Solutions

Allshare Retail Bank Solution (Quaestor), Private Bank Solution (Bank/View),

e-Banking

Alnova Financial

Solutions Altamira, Alnova 'A la Carte'; Alnova Jetbank

Antegra Antegra Bi banking system, Bi Card, SEPA Direct Debit

APAK BEAM Core (formerly Aurius), Sword BEAM, wfs

ASI - Arango Software

International ABANKS (AB@NKS) core banking

Automated Systems Inc

(ASI) Insite Banking System (US)

AutoSoft Dynamics

(ASD) AutoBANKER II and AutoIBANKER

Avaloq Avaloq Banking System

Banking BPO

Sabeen Siddiqui Page 46

B BankVison Software Core BankVision

Bantotal by De Larrobla

& Asociados (DL&A) Bantotal Nucleo

Bavaria Banken Software IBP International Banking Package

BML Istisharat ICBS

C Callatay & Wouters Thaler

Canopus Software

Laboratory macrobank4 core banking software, macrobank ru

CFT | Center of Financial

Technologies CFT-Bank core system, CFT-Retail banking solution

CGI (Canadian group)

RFS core banking + Horizon CRM, Loan Origination System, Delinquency

Management System

Chordiant Chordiant

CMC Limited (TCS

Group)

TC/4 Total Concept - 4 core banking | BRAINS 2000 branch system retail

banking

Cobiscorp | formerly

Macosa SA and

MicroBanx Systems

COBIS Core Banking | COBIS UBS (universal banking solution) (Latin

American solution)

Computer Sciences

Corporation Hogan, CSC/IBS, Celeriti, Cams II, K3000

Banking BPO

Sabeen Siddiqui Page 47

Craft Silicon

Craft Silicon - Bankers Realm (BR)

E ERI Bancaire Olympic Olympic

F FANAP

Fanap- Core Banking, Payment Switch,

Modern Banking (Internet, Telephone,

Mobile), Retail Banking, Islamic Banking

Fern Software Abacus OneWorld, Focus SQL, M2

Finance Technology IBBA taken into IBM Belgium

Financial Objects activebank, IBIS/S2

FinLogix - formerly

Dynasty Financial

Solutions | dfs

C-Logix core banking (formerly SIBAC), B-

Logix modular banking, D-Logix direct

banking

Finnova AG Bankware finnova

FIS | Fidelity National

Information Services

(FNIS)

Corebank, Alltel Systematics, Sanchez

Profile, Horizon ACBS (Advanced

Commercial Banking System), Kordoba,

Banking BPO

Sabeen Siddiqui Page 48

ALLprofits, MiSER, BancPac, Metavante

FISA Group | FISA

Systems FISA-System (MODUS)

Fiserv CBS

ICBS | Signature by Fiserv, CBS, Basys /

Metabank; Catapult | Premier; Acumen

Flora Systems

Flora Bank conventional and Islamic core

banking UBS and Branch retail banking

FORBIS FORPOST, FORPOST*Internet Banking

FORS Banking Systems

(FORS-BS) Va-Bank automated banking system

FPT Information System

(FPT-IS) FPT.SmartBank

G GrapeCity Mongolia

GrapeBank core banking | GrapeCity

complete banking solution, AchidBanker

microfinance system

H Harland Financial

Solutions

Phoenix Software | PhoenixEFE business

software platform for banks and credit

unions

Banking BPO

Sabeen Siddiqui Page 49

HCL Infosystems HCL BancMate CBS core banking solution

I

ICS - International

Computer Systems

(London) Ltd

BANKS

IDSSPL (Info Dynamic)

IDSSPL Core Banking software - Dynamic

Banksoft, Dynamic Creditsoft, Dynamic CBS

Infopro ICBA

Infosys Technologies Finacle

Infrasoft Technologies

(InfrasoftTech) OMNIEnterprise

International

Financial Systems Ltd | IFS

BankWare.NET (i-Financial), i.Bank

(formerly Criterion Banking Software)

Intertech

inter-Next integrated banking platform |

inter-Face core banking, Quantis core

banking platform, Intertech Islamic banking

solution

Banking BPO

Sabeen Siddiqui Page 50

INTRACOM IT SERVICES

(Intrasoft) Profits

ISODEW

LC50 BankSuite | community/social bank

solution, LC50 Lite, LC50 Microloans

microfinance, LCBNK Server | CBK Coreone

ISYS Banking Software BEST Banking core solutions

ITS - International

Turnkey Systems

ETHIX total banking solution | ITS Core

Banking Solution (based on Phoenix), ITS

Islamic Banking Solution

J Jack Henry & Associates Jack Henry Banking - SilverLake; CIF

20/20; Core Director for US market

K KalSoft Vortex core banking

KBS Solutions KBS Banking

Kishware >> TOSAN

Banco NEGIN core banking solution

Kordoba GmbH KORDOBA Core24

Banking BPO

Sabeen Siddiqui Page 51

L

Laser Soft Infosystems

(LSI) | a Polaris Group

company

Laser Panacea core banking, Probanker CB

(for co-operative banks), Laser Twig for

small branches

Legando AG Legando private banking system

Banking BPO

Sabeen Siddiqui Page 52

9. Reference- Case Study BPO Banking

Case Study I –ACCENTURE

Cloud Computing in Banks

Accenture defines cloud computing as the dynamic provisioning of IT capabilities, whether hardware, software or services, from

a third party over the network.

Characteristics of cloud services include the following:

• Little or no capital investment required

• Variable pricing based on consumption; buyers “pay per use”

• Rapid acquisition and deployment

• Lower ongoing operating costs

• Programmable

Banking BPO

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1. What opportunities does the Cloud create for banks beyond cost

savings?

Building a Frictionless and Flexible Ecosystem

Cloud computing‟s most compelling use case for banks likely will be in the way innovative services can be created. The cloud

gives banks an opportunity to break apart their own value chain— be it credit approval or back-office fulfillment. Another

example: Banks will be able team up with other parties (such as telcos and post offices) that can provide the “last mile” to

consumers with whom t e banks have no existing relationship and who can be difficult to reach. In supporting such teaming,the

cloud can offer banks in the future an alternate growth strategy—i.e., a bank will be able to provide wholesale banking services

outside of its core geography without having to create a presence in the new region by acquiring an established brand.

Consumer Cloud Computing

The cloud also can help banks improve the ways customers access and use their products and services. Consider, for example,

a smartphone application that allows a party of diners to instantly pay the portion of the bill for which they are responsible.

On a more immediate level, banks can use the cloud to more deeply engage their customers via social media, which is growing

in prominence and popularity by the day. Automated and human-directed avatars can further extend the reach of the bank in

terms of time, location and product expertise, while cloud-powered collaboration technologies can make it possible for banks to

combine the knowledge of multiple experts across multiple branches to resolve customer issues.

Applications when you need them

Many banks are currently hindered by their legacy IT. Accenture believes that many banking applications soon will be

candidates for migration to the cloud and increasingly standard solutions will exist to help ease the legacy problem. New

corporate and customer-facing applications can then take advantage of the flexibility and speed the cloud can offer.

As well as being a key channel for banks to reach their customer bases in different ways, collaboration technologies can provide

a platform for application development, reducing development costs. The applications built for these cloud platforms can be

used to enhance a bank‟s brand, advertise banking products and services and inform and engage customers.

In addition, private social networks can be developed to enable employees and partners to nurture innovation and the creative

process. Applications built using this enterprise social software are already available: Confluence, a collaboration tool from

software developer Atlassian, now supports the OpenSocial tool, which lets users pull in gadgets to check Salesforce.com

contacts, Gmail, Google Calendar and other items.

Banking BPO

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Analytics redux

Analytics is a key focus for many banks at present, driven by the desire to understand risk and respond to regulatory pressures.

Increasingly, it is also seen as a way to facilitate growth, enabling banks to personalize their products, services and customer

experiences. Yet many banks still lack mature analytical capabilities, whether it‟s because they lack appropriate tools or have

difficulty sharing, integrating and storing vast amounts of data for analysis.

Cloud computing has the potential to render such shortcomings obsolete. It enables banks to churn through vast amounts of

data and decipher patterns and anomalies—not only in the past, but also projected into the future—much more quickly,

efficiently and cost-effectively. Part of this value comes from the fact that, via the cloud, banks can lease computing power as

they need it from Amazon Web Services, Microsoft or Google, or turn to vendors that have built analytics applications on these

platforms.

In fact, Visa currently is conducting a trial with Hadoop (free cloud-based software) to analyze 73 billion transactions to build

fraud models. By switching from in-house processing to Hadoop, Visa reportedly has cut the time it takes to build a fully

functional model from one month to around 13 minutes.

2. Making the move to the cloud

Accenture believes the critical issue is not so much whether cloud computing will become a fundamental technology in the next

decade, but rather how banks can profit from the promise and capabilities it offers. To increase their chances for success, bank

executives should consider the following guidelines:

• Ask hard questions and demand data-based analyses regarding cost savings from the cloud.

• Understand the condition and scope of your entire application portfolio and create a prioritized list of what should go into the

cloud and when.

• Establish a clear governance structure for cloud computing.

• Keep cloud efforts on track by giving them the focused thinking, planning and follow-up they require.

• Make sure goals, deliverables and desired benefits are well understood, and projects are well aligned with business needs.

• Provide the necessary support, from financial resources and technical talent to programs that develop the skills and share the

experiences of people engaged in cloud projects.

• When selecting cloud providers, carefully consider their financial stability, as well as their ability to improve functionality and

service levels and integrate data across different technology platforms and cloud services.

Banking BPO

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3. More journey than destination

At its most basic, cloud computing can reduce IT infrastructure costs for banks significantly. But in the broader picture, cloud

computing can offer banks myriad opportunities to improve dramatically how they attract, retain and service customers and

expand the markets they serve. However, banks should not fly blindly into the cloud without properly understanding the risks

and how those risks can be navigated successfully.

In particular, banks must rely on critical facts to guide their way: where savings will come from, how investment return will be

measured, what is expected of internal teams and vendors and what specific measures will guarantee security and long-term

success. While banking may be behind other industries in its move to the cloud, those banks that embrace it and execute

effectively stand to gain lasting benefits: lower costs, greater competitive flexibility and the ability to develop innovative new

products, services and channels and deliver high performance across them all. What once seemed an ethereal concept, cloud

computing within the next three years will be the reality of how business is done. The high performers will be the ones taking

full advantage.

Banking BPO

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4. Cloud Computing Model

Banking BPO

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Reference- Case Study BPO Banking

Case Study II –MISYS

BankFusion is a family of software components that Misys is using to deliver a new generation of solutions for financial services.

It is underpinned by the BankFusion Platform; an application development and runtime framework that provides capabilities to

build, configure, integrate, and deploy BankFusion Solutions across multiple computing platforms using Java technologies.

following are the principal elements of the BankFusion Strategy:

Universal Banking

This is the next generation Misys core banking system that is based entirely on BankFusion technology. It is live at two

customers, and recently challenged and beat tough competition in winning a new name client at Actinver in Mexico.

Shared Developments

Misys has created a BankFusion Business Solutions library; a set of financial components shared across the Misys portfolio.

These provide a rich future roadmap for existing customers and accelerate the build out of functionality through a consolidation

of development effort

around BankFusion.

Renovation

Existing Misys solutions, starting with Equation and Midas, are being enhanced with functionality built using BankFusion.

Existing solutions will use components from theBankFusion Business Solutions library that provide them with a rich roadmap of

enhancements into the future. This been completed for Equation, and a BankFusion Midas solution is underway for delivery in

Q4 2010. Misys will build on the benefits and techniques gained from the Renovation of Misys products to offer services based

on the BankFusion Business Solutions library to Misys Partners and

customers.

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Industry Platform

Misys will provide Independent Software Vendors with a platform and pre-built financial components to build solutions for the

financial services industry.

Banking BPO

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10. Land Escape BPO Banking