Strategies for a Successful Core Banking Implementation The roll out of FLEXCUBE at Indovina Bank, Vietnam

Mr. Phan Dao Vu First Deputy General Director Indovina Bank Ltd, Vietnam

Indovina Bank
Vietnams first joint venture bank Joint venture between Industrial and Commercial Bank of Vietnam (ICBV) and Cathay United Bank (CUB), Taiwan

Indovina Bank - Business Areas

Loans Foreign and Local currency Trade Finance Remittances Foreign Exchange Money market Investment Card business Correspondent Banking Deposits Foreign and Local currency

GROWTH IN BUSINESS
TOTAL ASSETS GROWTH 2001 - 2005

5000 4000
VND MILLIONS

4550 3552 3216

3000 1968 1648

2000

1000 0

2001

2002

2003

2004

2005

OUTSTANDING LOAN GROWTH 2001-2005

3500 3000
VND MILLIONS

3200 2816

2500 2000 1500 1000 500 0 2001 2002

1264 1616

2144

2003

2004

2005

DEPOSIT GROWTH 2001 - 2005

4000 3500 3000

VND MILLIONS 2720 2368 3300

2500 2000 1500 1000 500 0

992 1280

2001

2002

2003

2004

2005

PROFIT GROWTH IN 2001 - 2005

VND 96000

VND MILLIONS

VND 75440

VND 46686 VND 36086

VND 48224

2001

2002

2003

2004

2005

Need for a New Core Banking System

Develop capability to provide world class customer service Establish global banking standards to prepare for WTO accession Incorporate new generation banking technology for competitive advantage in the Vietnamese market Incorporate bank-wide Risk Management practices Develop a platform to enable multiple channel delivery

Selection of a core banking system

Evaluation of the solution providers Track Record - prior implementation and support experience Maturity of the solution and the vendor. Flexibility ability to extend functionality and scalability Support speed and quality of support Cost Most important: Attitude

Why Indovina chose i-flexs FLEXCUBE?

Maximum Functional Coverage Unmatched Flexibility Could be easily deployed across multiple entities Based on Oracle Technology Proven in Vietnam and globally

Strategy for implementation

Phase wise implementation in line with banks plans
First pilot to go live in 3.5 months

Implementation with minimum customization Ensure strict adherence to timelines

OneofthefastestFLEXCUBEpilotimplementationsglobally!!!

Challenges anticipated
Strong Project Team Internal user resistance Aggressive timeline Conversion issues Change management

Steps to a successful implementation

Create strong Internal Process Management Evangelize Knowledge sharing and Training Set Parameters based on the current requirements Incorporate Rigorous Testing procedures Flexibility to modify, change course Data Conversion while ensuring Data Integrity Parallel Run The final confidence booster! Go Live !

Key Learnings
Setting up the right project team Focus on modules with high volume transactions Having an overall view on the service/ product to be offered before defining products Concise and focused training programmes

Transformations with FLEXCUBE

Fully centralized data across the bank Head Office has complete picture of branch activities Head Office has a complete customer view centrally Easier control and operational management No technology staff and operations at the branch required

Complete automation of complex business processes such as LC, Discounting etc. Removal of all manual processes Much reduced margin of error Bank staff available for other activities

Future Plans
Increase the number of channels in the near future such as ATM, Internet Banking & Mobile Banking Launch new products based on the flexible options available Expansion in branch network

FLEXCUBEhasprovidedIndovinaBankanadvanced platformtosustainandfurtherourexponentialgrowth

Thank you