The rise of the Phoenix
In the 2008 financial crisis, ABN AMRO faced an existential threat initially being acquired by a consortium of banks under the name RFS Holdings and subsequently coming under the control of the Dutch government. Today, it has risen like a phoenix from the ashes to become a healthy profitable global banking institution ranked 61st by assets in the "The Banker Top 1000 2017".
Temenos has supported ABN AMRO every step of the way providing solutions for international corporate banking, private banking and global international payments.
International Corporate Banking in 9 Countries
The Temenos relationship began in 2008 when the bank merged with the Dutch arm of Fortis Bank which left the new entity with International Operations but no IT platform to support them.
The bank chose to implement the Temenos T24 Core Banking software for corporate banking. They wanted to ensure that each overseas corporate banking line of business had a standardised target-operating model for business processes, products and services, essentially allowing the bank to define its own "best practice" and ensure that this would be followed globally.
This would enable the bank to deliver consistent levels of customer experience to its large corporates wherever in the world they are banking. It would also enable the bank to easily grow its geographic distribution reach by quickly expanding into other countries.
This initial International Corporate Banking project included 8 countries; Singapore, Hong Kong, Japan, UAE, Belgium, Germany, the UK and the USA running from two hubs, one in the Netherlands and the other in Singapore.
Global Payments Hub – Strategic Co-development Relationship
In 2012, having rolled out international corporate banking to 9 countries, the bank began to look at the quality and capability of its in-house payments system. The bank decided that it needed to replace this given the outlook and direction that the future payments industry was heading.
Why take the risk of building a new Payments System when there are many well-known payment software providers on the market that were evaluated by the bank? Simply put, these solutions suffered from the fragmentation and silo'd designs that come with evolution over time. ABN AMRO was looking for a single global payments hub for both high and low value payments, for domestic and international payments with the ability to support all the countries that the bank does business in.
Given the anticipated move to digital money, the growth in online shopping and real-time payments in-country and cross-border; the application would be designed to effortlessly scale as required. Critical to achieving this scalability would be ensuring an extremely high STP rate based on data-driven rules-based configuration of the payment process.
Germany became the first country to be on-boarded to the ABN AMRO Temenos Payments Hub in September 2015. The UK, Belgium and the bank's Diamond and Jewellery line of business followed after that, and all have been on-boarded taking 6 months on average to on-board each country. The bank believes in the power of ONE, thus all geographies and all lines of business will make and receive payments through the centralised Global Payments Hub.
Private Banking in 6 Countries – Project ONE
The IT strategy established at the outset for the international corporate banking implementation was based on the concept of "ONE" across four pillars; ONE Operating Model; ONE Application Landscape, ONE Code Base and ONE Technical implementation. This is intended to maximise re-use, and drive simplicity, which in itself will achieve business and IT cost efficiencies and economies of scale across the international lines of business.
When the Bank began looking at its Private Banking business across the globe in 2015, it decided to implement the Temenos WealthSuite componentised offering to stay in line with their Project ONE strategy. This would extend the use of the T24 application to cater for back-office processing for Private Banking, re-using many of the modules already implemented for corporate banking. T24 would replace the bank's vendor provided legacy application.
In addition, the Bank would upgrade its Temenos Front-Office Portfolio Management System component, Triple A Plus, that integrates to T24 to provide complete end-to-end processing for the Private Banking and Wealth line of business, the Temenos Wealthsuite offering.
Project ONE included 6 countries, Singapore, Hong Kong, Jersey, UAE, Belgium, and Luxembourg and is in ongoing progress.
Reducing the cost of global compliance
The close collaboration and strategic relationship with ABN AMRO continues as we support the bank in achieving its vision, the power of ONE, ensuring that the bank is able to take our advantage of our investment, not only in terms of enhanced functionality and technology, but also in terms of global and local compliance with requirements such as CRS, FATCA, IFRS9 and other regulations that bank's must adhere to wherever they are doing business.