presentation: alior retail banking it system implementation by comarch

Retail Banking in Europe – Alior Bank case study

Sławomir Gierek

Comarch

Sławomir Gierek

Comarch

Alior Bank- case studyAlior Bank- case study

www.comarch.pl


Agenda

• What is Alior Bank?

• How does technology makes Alior Bank unique?

• Focus on front end excellence

• Results after four months of operation

• A few words about Comarch


What is Alior Bank?

• Key facts:

– the biggest banking start-up in European banking in the last 30 years

– funded by the Carlo Tassara Group

– equity injection of € 400 M paid in full

– formal creation of Alior Bank SA in April 2008 (after regulatory approval)


What is Alior Bank?

• The goal: to create a valuable bank 2012 figures:

– Sizable• captured market share of 2% to 4% depending on the

client segment

• 920 K clients: 200 branches, 8 business centers, 400 agencies

– Profitable• Revenues € 330 M

• Net profit € 100 M (2012)

• Cost/Income 54%, ROE 25%

– Entrepreneurial• Net profit at bank level in 2011-2012, fourth year after

launch

• Break-even at branch level: 14 months after branch start


Three pillars of the Alior Bank strategy

1. Best quality, motivated staff

•Excellent reputation at the local

market level

•Strong track record

•Strong results orientation

•Entrepreneurial reward/bonus

structure

3. Lean, centralized organization

with modern IT/operations

solutions

• IT systems at a fraction of the

previous costs (1/3)

• Full centralization of

operations

• Automation allowing for lean

organization structures (75%

of Alior bank staff is facing the

client)

2. Unique client proposition

• Attacking mid market

(companies and individuals)

with upper shelf products

• Fast decision making and

time-to-market

• Innovation

• Brand


High quality staff

• Experienced and professional

• Average banking experience of 8

years

• Diverse

• From 23 banking institutions and 5

countries

• With a proven track record

• Many prestigious award winners

• Carefully selected, verified

• 31,200 candidates

• 7,000 interviews

• 1,540 people hired

• No external head hunters used (except

for 2 people)

• Carefully and comprehensively trained

• 110,000 hours of Alior training in 2008


Unique client proposition (examples)

• Individuals:– Current Account with

automatic Overnight, free of charge

– ATMs worldwide free of charge

– Independent airline credit card for frequent flyers

– Fully integrated brokerage services available in all branches as well as the Internet

• Companies:– Several variations of

current account packages

– Autodealing

– Full lending offer focused on working capital loans

– Leasing and factoring services (planned)


Centralized IT and operations

Agencies

Reporting

Credit monitoring

Front Office

InternetContact Center

Payment SWIFT

Credit processing

Document Workflow Credit

bureau

Middleware SOA

Profile 7.2 IBS / FMS (General ledger and transactional system)

Inv/HR BrokerageTreasury

Card authorization

Scan archive

ATM


Efficiency in IT and operations

• Complete infrastructure built in 12 months

• Number of IT systems reduced by half (100 vs 200)

• High level of technology consistency

• Cost of IT systems at 1/3 of the typical level

• IT staff at 4.5% of the bank’s FTE number (planned for E2009 with 150 branches) vs 7% (benchmark)

• Reduction of paper use by 50%

• Extensive use of outsourcing: cash logistics, card management, document management, mass printing…

• „Shared infrastructure” SWIFT access

• 75% of staff is facing the client


Focus on front end excellence

Agencies

Reporting

Credit monitoring

Front Office

InternetContact Center

Payment SWIFT

Credit processing

Document Workflow Credit

bureau

Middleware SOA

Profile 7.2 IBS / FMS (General ledger and transactional system)

Inv/HR BrokerageTreasury

Card authorization

Scan archive

ATM


Front Office

• CAFE platform based (Comarch Front End)– Modern architecture with a portlet based advisor

desktop

– Dedicated tools for branch managers and central sales network management

– CRM, customer management and teller functionality combined in a single, browser-based tool

– Central user management through a domain controller and Comarch Access Management

• Innovative use of interactive displays for better communication with clients

• Going green: saving trees by significantly reducing the use of paper

• Fully integrated with Document Management– application generated barcodes

– images provided by outsourcer

Front Office


Contact Center

• Agents have instant access to data and functionality available in other channels – no synchronization necessary

• Web based application allows for initiating calls and responding to incoming ones

• Seamless integration with recording functionality (Witness)

• Supervisor and manager functionality included

• Support for marketing campaigns – including integration with ACD

Contact Center


Credit Processing

• Maximum automation– workflow based (simple cash loans in 30 minutes)– decision making engines– automatic monitoring and administration

• Maximum centralization of functions– loan approval

• analyses, policies, score cards• expert credit committee for non-standard loans

– administration, monitoring and collection• all functions central/regional

– fraud detection– credit process improvement and quality assurance– central on-line archive

• Maximum flexibility and integration:– process definitions and screens are defined not coded– printout management (with document templates)– integration with DMS (barcodes)

• Based on Comarch Credit Process Management

Credit Processing


Internet

• Based on Comarch Internet Banking and Comarch Internet Investments

• Unparalleled in available customizations, yet easy to use and understandable

• Includes a mobile version for web-enabled mobile devices

• March 2009, awarded by Gazeta Bankowa: „The Best Internet Banking System in Poland”

• Corporate and Intranet portals are managed with the Comarch Content Management System

Internet


Alior Bank – results after four months

• more than 100 branches

• more than € 300 M in deposits

• more than € 100 M of credit granted

• more than 100 thousand clients

• more than 2000 brokerage office clients

• more than 200 private banking clients Zielona Góra

Poznań Warszawa

Wadowice

Gdynia

Łódź

Rumia

Sokołów Podl.Łomża

Suwałki

Kraków

Włocławek

Wrocław

Pruszków

ElblągKoszalin

Wołomin

Radom

ZamośćStalowa Wola

Rzeszów

Krosno

Kielce

OlkuszOpole

Tarnów

Kalisz

ZabrzeGliwice

Grudziądz

Katowice

Bielsko-Biała

Mysłowice

TychyDąbrowa G.

Płock

Wejherowo

Mińsk Mazowiecki

Słupsk

Częstochowa

Legnica

Lublin

Toruń

Bydgoszcz

Gdańsk

Chorzów

Leszno

Sosnowiec

Szczecin

Świdnica

Gorzów Wielkopolski

Olsztyn

Ostrołęka

Business Centers

Białystok

Kędzierzyn Koźle

Siedlce

Wrocław

Inowrocław

ChełmPiotrków Tryb.

Branches


A few words about Comarch

• International IT software house and integrator, employing ~3500 people with € 160 M in revenue in 2008

• Active on various markets including: financial services, telecommunications, public sector, ERP software, trade and service providers

• Established in 1993 by current CEO and major shareholder Prof. Janusz Filipiak, listed on the Warsaw Stock Exchange since 1999

• The ‘Banking, Insurance & Capital Markets’ Business Unit delivers solutions to various parts of the financial market

• The banking segment concentrates on front end solutions including: Internet banking and Internet portals, document management, loan origination, sales network management and CRM


Comarch SA:

[email protected]

www.finance.comarch.com

Alior Bank:

www.aliorbank.pl

Comarch SA:

[email protected]

www.finance.comarch.com

Alior Bank:

www.aliorbank.pl

Thank you!Thank you!

www.comarch.pl

presentation: alior retail banking it system implementation by comarch

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