Aktia aims to save €5m a year with 2015 Temenos roll-out
Finland’s Aktia Bank has begun staff training on a new Temenos T24 core banking system that it plans to start implementing next year with an expected go-live date in 2015.
The bank is replacing IT systems provided by Finnish vendor Samlink, citing changing consumer behaviour and evolving regulation as reasons for the upgrade to the new platform, which will be done jointly between Aktia and Temenos.
The changes in consumer behaviour include decreasing usage of retail bank branches, rising use of mobile banking and smart devices, and increasing consumer expectations in terms of customer service. The changes in regulation include the Capital Requirements Directive IV, a legislative package that implements the Basel III rules in the EU.
Aktia is targeting yearly cost savings of €5 million in IT costs, and more cost-efficient processes. The renewal of the core banking system is intended to allow the bank flexibility to develop more efficient processes and enables it to launch new products and services across all channels – including branch, phone, internet banking and mobile – much faster than before. The choice of vendor was based on “proven solutions” and ability to respond to changed needs in banking.
“The renewal of our core banking system will give us the flexibility to develop and launch new products and services across all channels – including branch, phone, internet banking and mobile – much faster than before,” said Magnus Weurlander, director of banking products and processes at Aktia Bank. “We are delighted to be working with Temenos as we look to become the Finnish champion in customer service and improve Aktia’s ability to compete.”
Weurlander added that the bank was attracted by Temenos’ local expertise – Temenos is also used by Swedbank in Finland – and the T24 Model Bank, a suite of pre-existing modules and configurations that should help to improve speed and efficiency at the bank and time to value for new products.
Temenos has won several core banking deals recently. In October, Uganda’s Crane Bank chose T24, together with various add-on systems, to support its Uganda head office as well as its expansion into neighbouring Rwanda, while in September, it won several US regional banks who have signed to use its hosted core banking services. The company says it gained 43 new customers during 2012.