At 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.

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 core banking, Temenos Analytics, and Temenos Payments running on the Temenos banking cloud.

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 really showed its 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.

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

We partnered successfully with Nagarro

Nagarro is a global digital engineering leader with a full-service offering, helping Temenos clients become innovative, digital-first companies and enabling them to run intelligent and agile operations powered by data and automation.

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At a Glance

● 50% reduction in time required for end-of-day processing

● Achieved a 200% uplift in mainstream core processes​

● 6 months to upgrade the solution supporting loans, bonds, and deposit operations

● Improved currency management and distribution across banks

The State Bank of Pakistan is a critical hinge in the country’s financial system. As the nation’s central bank, it holds responsibility for securing economic stability through the regulation of monetary and credit systems while aiming to encourage economic growth and development. Achieving these goals means the bank requires the most reliable, advanced infrastructure—and, as 2015 came into view, it decided the time was right for a comprehensive update of its core systems.

Since 2000, the State Bank of Pakistan has been using Temenos Solutions, when it implemented two instances of Globus G11 software—the forerunner to Temenos core banking—one for its currency operations, and another for its banking functions. But as time and technology moved on, the bank realized it needed a more open architecture to support greater integration with other systems.

The Upgradability Business Model

Impressed with the latest Temenos software release, the State Bank of Pakistan decided to upgrade from Globus G11 to Temenos core banking R15. But this created a new challenge, as while the bank had been using the older solution, the Temenos software had undergone a complete re-architecting, with major functional changes. In effect, the State Bank of Pakistan was looking to skip 15 years of new releases in one go.

Luckily, the bank discovered it could take advantage of flexible upgrade paths engineered by Temenos.

Managing Business & People Change

At the outset, the State Bank of Pakistan identified managing and mitigating risk as the main requirement for the implementation strategy for the upgrade project. The bank did not simply approach the changeover from a narrow technical viewpoint, but more importantly, realized there would be major implications from a business process and people change management perspective.

To smooth the 15-year release jump, the State Bank of Pakistan decided to perform the upgrade in two stages back-to-back, with each upgrade a big bang in itself. In the first step, it would upgrade the Globus instance for its currency operations, along with the underlying hardware and operating systems, to a more open environment. One of the key objectives of the first upgrade was to gain knowledge and build experience to make the second implementation a simpler task.

Valuable Lessons Learned

The value of this staggered approach was clear by the end of the project: while the first upgrade took 12 months, the bank completed the second—for the solution supporting its loans, bonds and deposits operations—in just six months.

The implementation highlighted several lessons for people and business change management. Firstly, training and face-to-face support for users was vital to build up their knowledge of the systems and familiarise them with the new processes. Also, data cleansing before the upgrade, along with extensive and exhaustive testing, was hugely important to the success of the project.

By completing multiple rehearsal activities, the bank could maximize user involvement and seize the opportunity to verify data following each run-through. This rigorous approach also enabled the bank to establish processes for robust issue tracking and rapid resolution of major issues encountered during testing.

Key Benefits of the Upgrade

Although running upgrades is often regarded as simply an IT and technical exercise, State Bank of Pakistan recognized that the project would be vital to its overall operations and open the door to continuous business process improvements. Senior executives across the bank monitored progress, provided constant support, and ensured the upgrade investment plans aligned with the expected outcomes.

With the R15 Core Banking solution, State Bank of Pakistan enjoys improved scalability, integration and overall systems performance, along with simplified access to new product updates and periodic fixes. New functionality available to the bank includes role-based dashboards, process workflows, and workflow user events.

These new features, together with other enhancements, have led to greater operating efficiency and productivity, including a 50% reduction in time required for end-of-day processing. The solution also keeps the bank up-to-date with the latest SWIFT messaging standards and global financial regulations.

From the IT perspective, the new Temenos solution is much simpler to maintain and manage, helping the bank to achieve greater product innovation, flexibility and configurability. By moving from a version based on a client-server architecture to the browser-based R15 solution, employees also enjoy easier access, especially those working in the bank’s 16 field offices.

Together, these business and technical improvements will eventually result in reduced total cost of ownership of software and hardware, which will in turn provide additional resources for State Bank of Pakistan to invest in more platform enhancements.

We partnered successfully with Systems Limited

Systems Limited is a global technology public limited company founded in 1977 with the mission to offer holistic transformations to its clients. 

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