fabian cesarini - language lesson - future banking magazine i1 2010

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EXCLUSIVE: Banking à la carte - Société Générale on tackling the IT infrastructure challenge in a global banking organisation

PLUS: OUTSOURCING TRANSPROMO RISK & COMPLIANCE CORRESPONDENT BANKING GREEN IT MOBILE SOLUTIONS

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3Future Banking | www.banking-gateway.com

Foreword

Future BankingIssue 1 2010

EDITORIAL

Editor Michael Jones [email protected] sub-editor Elliott AykroydSub-editors George McDonald, Tony RockFeatures editor Phin FosterFeatures writers Elly Earls, Ian Duncan Production manager Steve BuchananGroup art director Henrik WilliamsDesigner Catherine DouglasEditor-in-chief John Lawrence

COMMERCIAL

Client services manager Derek DeschampsPublication manager Sanjeev [email protected] Chris WattsCirculation manager Daniel TrigueirinhoHead of sales Richard Jamieson Publisher William Crocker

Future Banking is published by Global Trade Media, in partnership with the European Banking Federation. Global Trade Media is a trading division of SPG Media Ltd, a member of the Audit Bureau of Circulations.

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The products and services advertised are those of individual authors and are not necessarily endorsed by or connected with the publisher. The opinions expressed in the articles within this publication are those of individual authors and not necessarily those of the publisher. Further copies of Future Banking are available from Global Trade Media at a cost of £5.95, €8.00 or $8.95 per copy.

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C ompetition remains key for banks. They can only operate well in a healthy competitive environment,

but, for the time being, banks are concerned that the search for financial stability has prevailed over competition rules.

As a consequence of the financial crisis, regulation is being revised under the G-20 umbrella. Deposit guarantee schemes have been reviewed and more harmonisation will probably be the next step within the framework of the EU. More globally, accounting standards are being revised, and credit rating agencies have come under more regulatory scrutiny. While welcoming any necessary changes, the European Banking Federation (EBF) keeps urging governments to coordinate their actions at the international level and maintain a level playing field between the banking sectors. It is the key to fair competition.

More coherence, more convergence and less duplication of supervisory requirements and practices across the EU support the same aim, which is why EBF welcomes the European Commission’s proposal to create European Supervisory Authorities, which will operate in a network with the national supervisory authorities. The proposed reform represents a great opportunity to at last address these issues.

But for now, the key challenges for the European banking sector are the proposals made by the Basel Committee of Banking Supervisors on capital and liquidity requirements. EBF believes that the impact of the proposed Basel reforms on the economy, capital markets and banking structures require careful analysis.

All reforms must be implemented progressively and simultaneously worldwide in order to preserve the chances of recovery of our economies and avoid distortions of competition and business models.

EBF is participating in an international macro-economic impact assessment and we have clear signs already that, if implemented in their current form, the proposed measures would deeply damage the European economy, cost it several percentage points of growth and hamper the development of trade.

This concern is not just that of major banks, but also of smaller and medium-sized ones, who need to be able to find enough capital to finance their lending activities or they will have to limit them.

In this respect, the challenge is no small one for regulators and policy makers, to strike the right balance between prevention and the cost to the still fragile real economy.


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On the web...Find recent editions, thought leadership and market analysis at: www.banking-gateway.com

In this issuePage 13: Paul Ward, head of EMEA corporate coverage, RBS, on rebuilding market confi dence.

Page 16: Françoise Mercadal Delasalles, head of corporate resources, Société Générale on global IT.

Page 81: HSBC’s Darren Armitage on investing in innovation and new customer channels.

Subscribe online to receive the next edition at www.banking-gateway.com

International relations

Alessandro Profumo, president of the European Banking Federation and CEO of UniCredit Group.

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Contents

4 Future Banking | www.banking-gateway.com

The intelligence

6 News A round-up of the latest news

and statistics.

Market intelligence

9 Competition on a level playing field

The European Banking Federation’s Elie Beyrouthi on how European banks must ensure Europe’s competitiveness at a global level.

13 Back up to speed Paul Ward at RBS looks at rebuilding

confidence after the downturn.

Cover story

16 Banking à la carte Jim Banks sits down with

Société Générale’s Françoise Mercadal-Delasalles and Bertrand Lemarignier to talk IT strategy.

Outsourcing

20 Share the load Capgemini Financial Services

on why experts can give banks agility.

22 Chile’s growing success InvestChile discusses appealing

to investors.

24 Letting financial services take flight

Tata Consultancy Services explains the value of outsourcing IT.

26 An evolution in banking Avaloq Evolution on how software

can improve banking processes.

Managed file transfer

27 An easier way to link with partnersEasyLink on replacing complex networks with managed file transfers.

System integration

28 Language lessonJim Banks speaks to Fabián Cesarini, Santander Private Banking UK, about the bank’s ability to get IT systems to talk to one another.

Customer experiencemanagement

30 Cast the net for new ideas Gartner explains how winning new

customers requires innovation.

32 Outward bound Avaya looks at integrated contact

centres and technology.

34 Go ahead, help yourself NCR on how self-service solutions

must fit in with consumers’ lifestyles.

35 Swim the channels BT on how interacting with customers

differently can create opportunities.

36 Invest in innovation HSBC explains why innovation must

become a discipline.

38 Internet banking 2.0 Backbase on why web technology

helps keep pace with change.

40 The measure of success CFI Group explains how the scientific

measurement of customer satisfaction can improve financial results.

Transpromo

42 A winning formula Pat McGrew at Kodak looks at

supporting banking services with strong information resources.

44 Redefine document management

The German retail arm of Citibank, rebranded TARGOBANK, explains why it chose T-Systems to modernise its document process.

47 Making the message loud and clear

EMC Document Sciences looks at the right customer communications management platform.

48 Transpromo: it’s all about quality

Xeikon on how the potential of transpromo can be realised.

Data warehousing

50 Manage the data enterprise Alior Bank explains how Teradata’s

data solutions are helping to enhance the organisation’s business culture.

xxxxxx

16Cover story


Unlock customer valueWe investigate how to enhance the customer experience



Société Générale on serving up a global banking solution.

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Contents


Correspondent & relationship banking

52 The perfect partner Scotiabank on what to look for when

choosing a banking partner.

54 After the recession: survival solutions

Deutsche Bank’s Dieter Stynen tells Elly Earls how innovation will shape the future of commercial banking.

56 Meet the emerging markets Reinhard Furthmayr of

Commerzbank explains the importance of market knowledge.

57 A collaborative vision The Depository Trust & Clearing

Corporation on the role repositories have to play in the collaboration between participants and regulators.

Green IT

58 Print not, want not Quocirca’s Louella Fernandes looks

at how office print infrastructure can reduce waste paper consumption.

60 Think before you print Toshiba TEC on how printing is

chronically neglected in efforts to boost business efficiency.

62 Green technology, the HP way

HP’s Arie Ossewaarde tells Elly Earls how energy saving solutions can transform a financial institution’s costs, giving it a crucial competitive advantage.

64 Power to deliver NDSL on how bank technology is

reliant on battery systems.

65 Luxumbourg at the centre of ICT technologies

Future Banking reports from the ICT Spring conference.

66 Data centres of excellence The eBRC and Migration Solutions

explore data centres of the future.

Special report: M&A

68 Ancient and modern Massimo Castagnini of Monte

dei Paschi di Siena tells Ian Duncan how his company took an unorthodox approach to expansion.

Risk & compliance

72 Total accuracy Reinhard Wienke explains the

advantages of ASP solutions.

73 A clear view of risk Microgen highlights the need for a

higher degree of data transparency.

74 Filling in the gaps SecondFloor discusses bringing

existing IT systems up to speed.

76 The investor takes centre stage

CAPITECTS on how a new form of portfolio optimisation is emerging.

79 The long road ahead Moody’s explains how money market

funds, hedge funds and the industry as a whole are reacting in 2010.

80 The big conversation RiskMetrics Group on building a

culture around risk principles.

Asset-based lending

81 Prized assets Now that banks offer asset-

based lending as part of their portfolios, the product can shake its lowly reputation.

83 Assets in balance Fidis explains how powerful

software helps banks with asset-based lending.

Revenue management automation

84 Make informed decisions Bonaire Software Solutions LLC on

making information available for Barings Asset Management.

Security

85 Human factor Phil Genge of Nationwide tells

Ian Duncan why employees and customers, not servers and laptops, are the new priority.

88 A hands-on approach to security

Fujitsu explains why biometrics are continuing to gain credence.

Mobile solutions

90 Who goes there? ValidSoft on new transaction

verification techniques.

92 Q&A Sean Gilchrist, digital

banking director for Barclays UK Retail Banking.

95 Mobile collaboration The EPC and The Mobey Forum

are defining the rules and regulations for SEPA’s new mobile channel.

98 Suppliers guide

RBS’s Paul Ward on boosting con�dence.

13

9EBF on fair play for banks.

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Insight > Systems integration

28

The increasing pressure on the banking sector in the last two years has, if anything,

intensified the need to invest in systems innovation and improve service delivery. It has also fuelled consolidation among banks, which brings its own challenges in terms of systems integration. Some financial institutions have been able to respond to these challenges with great agility and become clear leaders in growth, stability and innovation.

Among those banks able to respond to the current environment in an agile and nimble fashion is Santander Group, where the organisation of business divisions and a clear strategy for systems development and integration has helped it to grow successfully through acquisition.

“Santander is one of the few financial services groups, and I have worked for many, that gives a lot of importance to IT and technology development. We invest massively every year, which is one of the reasons why we are in much better shape than other banks after the financial crisis,” says Fabian Cesarini, head of IT for Santander Private Banking UK.

Santander’s growth has forced it to manage many complex IT programmes at once, but its the merit of its strategy has been proven in action, enabling it to remain a leader in systems innovation. In the UK, its ongoing integration of the Santander UK businesses is a prime example.

“It urgently requires a common platform as a foundation to grow many IT projects. For the development and consolidation of previous existing businesses in our private banking unit we needed a more flexible IT platform. We integrated the IT systems in one of our businesses, establishing a new methodology for the administration of customers’ portfolios that allowed me

and a small team to produce massive change in a very short time, and we are now implementing that in the rest of the companies,” says Cesarini.

“All of these businesses were different in scope and focus, with different products and services. We had inherited companies that looked

Language lessonJim Banks speaks to Fabián Cesarini, CIO of IT Santander Private Banking UK, about the bank’s ability to get IT systems to talk to one another.

Santander is one of the few financial services groups that gives a lot of importance to IT technology and development.

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Insight > Systems integration


in different directions so we are integrating their platforms, products and services through different channels,” he adds.

An essential ingredient in tackling such challenges effectively is the organisation of IT support services. The Santander Group has a global structure that includes revenue-generating business units on one side and support units, including the technology and operations, division,

which brings together the support companies including Isban, for which Cesarini works.

Isban develops software and provides system integration services, which are shared by the different business lines within the group. It acts as a partner to the banking businesses, delivering the systems that support customer services and reduce operating cost. Another key element is the IT infrastructure management company Produban, which handles IT operations and global telecommunications connectivity for the entire group. There are further companies for IT procurement, outsourcing and offshoring. There is also a centralised laboratory for software development, which creates products and tools that can be used in every country in which the bank operates.

“The support companies are centralised to offer integrated services across all of the bank’s businesses in all regions, whether it is private, wholesale, or retail banking. For all business lines we are looking at the standardisation of services and the setting up of a platform that allows companies to grow and deliver measurable benefits like cost savings,” says Cesarini.

Balancing tactics and strategySantander Private Banking UK has embarked on a three-year IT

integration project, in which it will install core banking systems developed in Spain. These include Partenon, which enables the rapid and cost-effective integration of acquired businesses by replacing silo-based IT systems across multiple channels. This will greater coherence to the IT infrastructure and help the bank reduce its time to market for new products, as it has done for Santander’s retail banking operations.

In Cesarini’s area of private banking, Santander will also bring in its asset management system.

“One of the most important projects in private banking is to implement our investment platform, which enables a wide range of products and portfolio development. Very few competitors can provide a similar set of services. But bringing over our core banking systems from Spain involves many big projects,” he remarks.

The delivery of services, however, cannot suffer while these large projects are implemented. To manage the bank’s short-term performance requirements with its long-term goals of systems integration, the bank looks to temporary solutions.

“We need tactical solutions that will work for six months or a year while we do the big projects with our core banking systems and their satellite applications. We will find those solutions from the market or create bespoke

applications. We need to maintain a balance between corporate projects and our UK activities. IT strategy cannot run alone, it must follow the business strategy in the UK, so we need transformational projects that will allow more product development, better pricing and more flexibility. At first, we need tactical projects for local needs,” notes Cesarini.

In Cesarini’s area of private banking, and other retail banking activities, personalisation and high-quality services are fundamental to success. Investing in IT is core to reaching these goals, hence Santander’s investment in cutting edge projects.

For instance, private banking services for our clients are seeing investment in new communication and conferencing capability. Through the normal bank website these clients will be able to talk directly to their private bankers or relationship manager using audio or videoconferencing technology, as well as accessing efficient transactional services. Phone, online and video services are being brought together on the data system, proving that every area of Santander Group’s activities is a focus for

technology investment.As Cesarini says: “Santander Private

Banking is less well-known that its competitors in the UK, though it is very well-known in

other countries in Europe and the Americas. Technology

will help to develop its reputation.”

Santander Private Banking is less well-known than its rivals in the UK. We need technology support to develop its reputation.

Fabián CesariniFabián Cesarini has more than 17 years of international diversified expertise in leading technology operations and reengineering initiatives across large/middle-scale, complex organisations. He began working for the Santander Group in July 2006, at the new Santander Asset Management UK division, before moving to Santander Private Banking UK in February 2009 as CIO. During his first year he took control of the IT teams at Santander Private Banking UK divisions.

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