Banco de la Nación del Peru
Improving financial inclusion by launching innovative, seamless, and intuitive digital banking services
At a Glance
• 2.16 million DNI accounts opened in the first six weeks, with peaks of more than 89,000 daily enrollments.
• Approximatively 5 minutes for customers to activate digital accounts, 90% faster than using the previous core platform.
• Sub-millisecond response times ensure a fast, seamless customer experience
Banco de la Nación del Peru plays a pivotal role in the Peruvian financial system, operating both as a central and a retail bank. On the one hand, the bank manages state accounts, foreign trade and debt, collects taxes and makes payments on behalf of the Ministry of Economy and Finance. Banco de la Nación also runs programs that support financial development and improve quality of life for Peruvian citizens.
“We aim to boost financial inclusion in Peru, bringing banking services closer to citizens, especially in remote areas traditionally underserved by banks. To reach these people, we focus on innovation, such as digital banking services that enhance accessibility and enable fast and secure services.”
Jaime Bravo Xavier, Alternative Channels Manager at Banco de la Nación del Peru
Delivering vital financial assistance
The COVID-19 pandemic made Banco de la Nación’s work more important than ever. To protect vulnerable citizens and businesses, the Government launched a series of relief schemes, including the Yanapay bonus, a state grant for low-income households and those living in poverty.
To disperse Yanapay funds to citizens in need, the Ministry of Economy and Finance asked multiple financial institutions, including Banco de la Nación, to implement a payment strategy. In response, the bank made available, among other services, the DNI Account, named after the official term for citizen identification numbers in Peru. Opening a DNI Account would enable users to receive payments from Yanapay, as well as accessing other financial services, virtually, without exposing them to the risk of contagion.
Janny Nicasio, Business Solutions Leader of DNI Account Project at Banco de la Nación del Peru, continues: “In the long term, we wanted the DNI Account to offer citizens a range of innovative and integrated banking capabilities, such as interbank money transfers, withdrawals in correspondent agents and payment of services. And ultimately, our dream is for all Peruvian citizens to enjoy access to a DNI Account.”
Building an agile core banking environment
Pedro Martin Hidalgo, Technical Leader of DNI Account Project at Banco de la Nación del Peru explains: “Rather than use our mainframe-based systems, we decided to deploy a new core environment to support the DNI Account. Along with rapid product development and exceptional performance, we wanted a solution that would provide an intuitive customer experience and help to encourage adoption among Peruvian citizens to digital banking.”
Deploying a proven, world-class platform
To identify the right solution, Banco de la Nación conducted an analysis of several market-leading vendors. Ultimately, the bank chose to work with Temenos and his business partner Techmill Technologies* to deploy Temenos Transact, Temenos Analytics, and Temenos Payments running on the Temenos Banking Cloud
“Independent analysis from the likes of Gartner informed us that Temenos was the world-leader for core banking, with an excellent reputation for innovation. We also considered the scalability of their solutions, which would allow us a solid growth. Plus, we wanted to take advantage of the technology and infrastructure in the Cloud, which will allow us to increase productivity and reduce risks“Janny Nicasio, Business Solutions Leader at Banco de la Nación del Peru
Pedro Martin Hidalgo adds: “Techmill Technologies* coordinated the implementation to meet our timelines, and their communications and dedication have been positive. Their support has been integral to our success.”
The Temenos solutions sit at the heart of Banco de la Nación’s digital banking ecosystem, integrating with systems from ten other vendors, including customer acquisition, communications, and digital wallet tools. Once live, the bank’s multidisciplinary teams used the Temenos solutions to test and optimize the DNI Account.
Janny Nicasio comments: “During the development phase, the Temenos Banking Cloud solutions really showed their value. We could run multiple environments at the same time, which simplified stress testing (carried out in 2021) and simulations; and allowed us to measure aspects such as transaction times before fine-tuning our approach. Adopting the cloud model made a challenging and potentially complex process much easier.”
Reaching millions of citizens in need
Since the launch of the DNI Account in October 2021, Banco de la Nación has achieved extraordinary growth, with over 2.16 million accounts activated in the first six weeks and peaks of more than 89,000 daily activations.
Pedro Martin Hidalgo adds: “Reaching more than two million DNI Accounts in such a short time period represents a huge success for Banco de la Nación. Working with Temenos, we have created a digital banking service that enables vulnerable and low-income Peruvian citizens to receive vital Yanapay support payments, which will help them through these challenging times.”
An intuitive experience that encourages adoption
Despite rocketing demand and transaction volumes, the performance, scalability, and robustness of the Temenos solutions ensure a seamless experience for DNI Account holders. After adapting together the different platforms, the Temenos solutions provide sub-millisecond response times for Banco de la Nación customers when checking their accounts, with minimal errors and deviations even during peak transaction times. As a result, users are highly satisfied with the service.
“Thanks to the Temenos solutions, customers can open a DNI Account in approximately five minutes. And they enjoy immediate access whenever they check their balance online. We have created a seamless, intuitive experience that will continue to attract more users, including citizens previously unfamiliar with digital banking.”Luis Arrus, Digital Banking Manager at Banco de la Nación del Peru
Bringing financial services to every corner of Peru
Banco de la Nación del Peru plans to add a number of features during 2022 and 2023, including transfers, payments, virtual POS and digital wallet options. In 2022, Banco de la Nación expects to reach more than 10 million DNI Accounts, for Peruvian citizens over 18 years old. It is estimated that, by December 2023, the DNI Account will make it possible for all Peruvians over 18 years old to have a 100% digital bank account. With this account, they can carry out operations through various physical and virtual channels such as receiving payments, saving, making transactions, and even having a financial history.
Janny Nicasio concludes: “Working with Temenos and Techmill Technologies* has been satisfying It has helped us take another step towards our goal of making the DNI Account available to all Peruvian citizens.”
*Techmill joins forces with Nagarro