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Fow Issue 30


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An interview with me and my collegue, Steinar Sturlaugsson, in Finance on Windows abe online banking. See page 30.

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Fow Issue 30

  1. 1. FINANCE NEWS INTERVIEWS PROFILES FEATURES COMMENTARY ANALYSIS ON WINDOWS AUTUMN 2008 MICROSOFT TECHNOLOGY IN THE FINANCIAL SERVICES INDUSTRY SWIFT VIRTUALISATION AND SURE Pim van der Horst on how KAS Bank is leading CORE BANKING GOVERNANCE, the way in Swift connectivity with Microsoft RISK MANAGEMENT BizTalk Accelerator for Swift AND COMPLIANCE Find out how Microsoft and its partners are working “A well-architected, flexible payments infrastructure will give banks a greater to help integrate governance, risk management and chance of outsourcing success. Microsoft’s Payments Services Factory allows compliance into the organisational DNA. Page 42 different services and applications to coexist with legacy systems.” Colin Kerr, Payments Industry Technology Strategist, Microsoft
  2. 2. AUTUMN 2008 FOREWORD Payments processing is high on the agenda for many of the region’s financial institutions as they deal with a growing number of new payment methods and regulations. In this rapidly evolving environment, the need for agile, people- ready technology is greater than ever. KAS Bank was only too aware of this when, as part of its migration from the mainframe to Windows, it decided to streamline its Swift connectivity with Microsoft BizTalk Server and BizTalk Accelerator for Swift. On page 20, KAS Bank’s Pim van der Horst tells us about the project, and how it is helping the bank to direct valuable resources back to improving the customer experience. This is an exciting time for virtualisation, with the latest technologies now extending beyond the data centre to embrace the desktop. For our round table feature on page 26 we gathered a panel of experts to discuss the latest developments, and asked how virtualisation can benefit capital markets firms. As the global credit crunch intensifies, businesses and customers alike face financial uncertainty. Banks need the support of agile IT, but as budget holders tighten their belts, technology renewal can seem a daunting prospect. On page 36, we explore how a phased, strategic approach to core banking renewal can enable banks to improve operations and reduce costs, answering today’s challenges while preparing for future growth. We also have our usual selection of incisive commentary and news from the industry. Don’t forget to visit us at for the latest news updates from across the region. Enjoy the issue. Anders Abrahamsson Managing Director, EMEA Financial Services Microsoft FINANCE ON WINDOWS EDITORIAL MICROSOFT EDITORIAL COMMERCIAL Editor ADVISORY BOARD Partner Managers Jacqui Griffiths Anders Abrahamsson Christian Jones Managing Director EMEA Financial Services Assistant Editor Andreas Drescher Ryan Kenward James Dodd EMEA Partner Manager Gordon Ejsmond-Frey Ben Mayer Group Editor EMEA Industry Director, Insurance Adam Lawrence Marcus Miola Andrew Longstaff Industry Marketing Manager Ricky Popat Editorial Contributors Tony Emerson Freek Oldenhuis Arwert, Microsoft EMEA Industry Director, Banking Amandip Singh Günther Aust, Fujitsu Siemens Computers Ian Warford Mark Bates, RDT EMEA Industry Director, Capital Markets Graham Bright, Financial Tradeware Partner Director James Burns, Microsoft Paul Simpson COVER PHOTOGRAPHY Steve Craggs, Lustratus Research Phil Dawson, Gartner Rohan Van Twest Subscriptions Sheida Hadji-Ashrafi, Microsoft Ewan Campbell Kirk Herrington, GaleForce Solutions Carrie Higbie, Siemon Reprints Pim van der Horst, KAS Bank Stuart Fairbrother Nick Jasper, Apak Arnar Jonsson, Applicon Business Manager Colin Kerr, Microsoft Richard Pepperman John Macaluso, Fiserv CBS Worldwide Publisher John McKee, Financial Objects Toby Ingleton Ian Masters, Double Take Software Leslie Muller, DynamicOps PRODUCTION Barrie Neill, Temenos Michael Nicastro, Open Solutions Creative Director Philippe Nicolas, Brocade Leigh Trowbridge Brian O’Gilvie, HP Designers Sai Sireesh Pachava, Microsoft Bruce Graham Karien Pype, Financial Architects Kelvin Jones Steinar Sturlaugsson, Applicon Paul Robinson Koen Van den Brande, Microsoft Web Site Manager Ian Warford, Microsoft Dan Dore Steve Yatko, Credit Suisse Green IT Advisor Dr Bernd Kosch, Fujitsu Siemens Computers 1
  3. 3. AUTUMN 2008 CONTENTS 26 6 48 36 20 42 COVER STORY FEATURES MARKETWATCH COMMENTARY PROFILED SIGN OUT SWIFT AND SURE 20 VIRTUAL WORLDS 26 NEWS DIGEST 6 WILL THE CREDIT CRUNCH 48 TECHNOLOGY IMPLEMENTATIONS 58 VOICE OF EXPERIENCE 64 KAS Bank CIO Pim van der Horst tells us We ask a group of experts about the Including the latest news and research BITE PAYMENTS OPERATIONS? Successful projects at Kaupthing Bank, the Mark Bates, chief executive officer of RDT tells us how the bank is leading the way in Swift technology and trends behind virtualisation from technology providers across the A well-architected, flexible payments London Stock Exchange and HgCapital about his passion for technology connectivity with Microsoft BizTalk Accelerator in the financial industry EMEA region infrastructure will give banks a greater chance of for Swift surviving the credit crunch, says Colin Kerr CURBING THE CRUNCH 36 How a service-oriented approach to core GOVERNANCE, MANAGING A WEALTH 50 systems renewal can help support business RISK MANAGEMENT OF CLIENT INFORMATION agility without breaking the bank AND COMPLIANCE Kirk Herrington looks at how CRM can bring benefits for compliance as well as customers REGIONAL ROUND-UP 42 How Microsoft and its partners are SAFE AND SOUND 50 working to help financial firms ensure Brian O’Gilvie discusses how financial firms can governance, risk management and create a long-term information archiving strategy compliance best practices throughout FULL CIRCLE 54 the business Companies are returning to virtualisation as a solution for data management, says Carrie Higbie BACK TO BASICS 56 A strong and agile technology base makes for superior online banking, say Arnar Jonsson and Steinar Sturlaugsson 3
  4. 4. AUGUST 2008 PUBLISHING PARTNERS Finance on Windows is produced as a partnership between Microsoft and Fujitsu Siemens Computers, one of Europe’s leading computer companies, offers one of the selected key organisations from the financial services world’s most complete product and solution portfolios. The company ensures the highest technology sector. These level of customer support with a direct sales force of more than 2,500 IT professionals on the partners are responsible for front lines and over 3,000 sales partners. As a joint venture between Siemens AG and Fujitsu the editorial direction of Limited, Fujitsu Siemens Computers was formed on 1 October 1999. Finance on Windows, and collaborate to provide you with content that covers the key issues facing financial services executives, and technology solutions that can address these issues. Getronics has fifty years' experience in providing solutions for retail banking and insurance companies. Its focus is on branch renewal, on the end-to-end development and management of solutions for the branch, and on designing and implementing multi-channel architectures. Seventeen of the world’s top twenty financial services companies are Getronics clients. FINANCE ON WINDOWS Published by Tudor Rose Tudor House 6 Friar Lane, Leicester LE1 5RA, England Tel: +44 116 222 9900 HP is a technology solutions provider to consumers, businesses and institutions globally. Fax: +44 116 222 9901 The company's offerings span IT infrastructure, personal computing and access devices, global services, imaging and printing. Managing Director: Jon Ingleton ISSN 1473-2173 Finance on Windows is published quarterly and is available via subscription please visit: for more information. The Microsoft vision is to enable every business enterprise to use the Internet to build richer customer experiences. Microsoft sees e-business as more than just transactions Printed in Great Britain by The Manson Group over the Web, it is a means for establishing a closer relationship with customers and Cover photography Rohan Van Twest. trading partners and Microsoft .NET is the evolutionary strategy behind this vision. © 2008 Tudor Rose Holdings Ltd. All rights reserved. No part of this publication may be stored or transmitted or reproduced in any form or by any means, including whether by photocopying, scanning, downloading onto computer or otherwise without the prior written permission from Tudor Rose Holdings Ltd. With more than 600 customers in 60 countries worldwide, SAP for Banking provides Active Directory, BizTalk, Microsoft, Outlook, SharePoint, banking specific (transactional banking, CRM, risk management) and banking relevant Visual Studio and Windows are either registered trademarks or trademarks of Microsoft in the US and/or (financial accounting, human resources management, procurement) services and other countries. The names of actual companies and solutions, created on a single enterprise SOA enabled business process platform. products mentioned herein may be the trademarks of their respective owners. SAP and Microsoft are long term complementary partners as demonstrated by Duet™ software, a jointly developed solution to empower a company’s employees to Views expressed in this magazine are not necessarily those of Microsoft or the publishers. Acceptance of seamlessly access data and SAP enterprise applications within the familiar Microsoft advertisements does not imply official endorsement of Office environment. the products or services concerned. While every care has been taken to ensure accuracy of content, no responsibility can be taken for any errors and/or omissions. Readers should take appropriate professional advice before acting on any issue raised herein. The publisher reserves the right to accept or reject advertising material and editorial contributions. The publisher assumes no liability for the return or safety of unsolicited art, photography or manuscripts. Temenos is a global provider of banking software systems in the Retail, Corporate & Correspondent, Universal, Private, Islamic and Microfinance & Community banking markets. Headquartered in Geneva with 44 offices worldwide, Temenos serves over 600 customers in more than 120 countries. Temenos’ software products provide advanced technology and rich functionality, incorporating best practice processes that leverage Temenos’ experience in over 600 implementations around the globe. 5
  5. 5. M A R K E T WATC H | N E W S M A R K E T WATC H | N E W S IN THIS ISSUE MICROSOFT .NET 8, 10, 12, 13, 14, 18 Active Directory 18 Insurance Value Chain 14 IP Ventures 15 SharePoint 14 Silverlight 15 Solver Foundation 15 SQL database 10 REPORT by Jacqui Griffiths SQL Server 14, 16 Vista 18 PAYMENTS ON ANOTHER LEVEL Windows Mobile Windows Workflow Foundation 16, 18 18 PAYMENTS PROCESSING SYSTEMS ARE MOVING TO THE NEXT LEVEL, SAYS REPORT TECHNOLOGY PARTNERS Accenture 15 Albany Software 13 Apak 10 become increasingly popular, says Craggs: elements as possible of the business Ascentn 8 “With rules-based capabilities, business flows, with all their quirks and subtleties, Business Control Solutions 12 logic is controlled by rules that are are included in order to minimise Devicelock 18 Duck Creek Technologies Europe 18 abstracted from the technology – if you exceptions,” he says. “The winners will be DynamicOps 18 want to give students free banking, for those who can integrate external eMedia Monitor 8 example, you could change a rule that modules, often bought from third parties Financial Objects 13 identifies the payer as a student and sets without affecting the core, while Financial Tradeware 7 their charge to zero – you shouldn’t need to enhancing overall capabilities, especially Finsbury Solutions 14, 16 go in and change the code to achieve that, in exception handling and reporting.” Fiserv CBS Worldwide 16 just alter a clearly presented rule.” Formicary 8 Fujitsu Siemens Computers 14, 18 AN EXPERT’S VIEW GaleForce Solutions 13 For Graham Bright, managing director of Gig Werks 12 Financial Tradeware, the report’s HP 8 suggestions add up. “Payments systems are Insurity 18 at the heart of all bank and financial MBA Systems 8 operations, beating continuously, Moore Stephens 16 “A service-oriented Platform Computing 14 performing their defined, often rigid approach will enable reusable, business- Portrait Software 16 functions with regularity, dependency and differentiated QuantHouse 12 with guarantees of service levels,” he says. components” RDT 16 “Just as an unfit runner becomes overheated Steve Craggs Ridgian 8 and fatigued, so the same issue arises when Lustratus Sword Group 10 the system is stressed as volumes increase, Third Financial Software 14 or when it attempts to deal with the Xenomorph 14 unexpected.” THE REPORT IN BRIEF Zignals 15 Bright points out that many ageing systems find it difficult to cope with In his report, Steve Craggs addresses FINANCIAL SERVICES PROVIDERS exceptions, and this is helping to drive a three key issues. Bloomberg 16 shift toward the next generation of First-generation payments processing Credit Suisse 18 AGEING PAYMENTS SYSTEMS CAN STRUGGLE WITH EXCEPTIONS, PROMPTING A SHIFT TOWARD NEXT-GENERATION TECHNOLOGIES technologies. “Instructions of unusual systems are struggling to cope with the Deutsche Bank 12 format, with incorrect addressing or effects of globalisation, higher volumes 18 Kohlberg Kravis Roberts & Co 16 outside the accepted normality of straight- and increasing competition. They are London Stock Exchange 8 new generation of payments opportunity to innovate and differentiate. beginning to groan under their own through processing as prescribed by IT often not flexible enough, difficult to A processing technology is emerging in response to the “We’re reaching a sea change in payments,” says the report’s author, Steve weight, and as it’s become more difficult to add new functionality, this also departments lead to manual handling,” he points out. “Apart from the risk this customise, and offer limited visibility of payments activity. Rabobank SGAM Alternative Investments Société Générale Asset Management 13 12 12 latest challenges, according to a new Craggs, director at Lustratus. hampers financial firms in differentiating brings in terms of time value, due Second-generation payments Thomson Reuters 18 report from Lustratus Research. “Globalisation has had a massive impact. themselves and responding to change.” diligence and potential interest loss, the processing addresses these issues Towergate 16 The report, 2nd generation payments The Single Euro Payments Area and cross- These issues can be resolved using flip side is that institutions can gain a using modern techniques: VTB24 18 processing systems: payments processing border transactions bring with them all several recent technology developments healthy income from charging punitive • Extensible, pluggable, service- systems move to the next level, observes sorts of issues, and then there is the such as a service-oriented approach, fees for this processing. Today, flexibility oriented approach ANALYSTS AND ASSOCIATIONS that the dramatic impact of globalisation explosion of different payment types to centralised view of business activity and of error and exception handling is the • Centralised, real-time management Apacs 16 on financial operations has generated deal with. Existing systems have been rules-based capabilities, says Craggs. key. Scalability of systems is now more of all payment types Celent 15 increasing competition, changing cost coping as well as they can with “Software has moved on in terms of simple, less costly and managed in • Rules-based functionality and Committee on Payment and Settlement models and surging volumes, while developments over the past 10-15 years, capabilities and styles,” he explains. “A operating systems.” control. Systems 8 regulatory activity has become more but they’re coping in the way they did in service-oriented approach will enable Looking ahead, Bright says that Datamonitor 18 Enterprise Ireland 15 intense. As a result, the report says, the 1980s and 1990s, by delivering a new reusable business-differentiated standardisation of payments messaging In doing so, it brings a wide range of Juniper Research 8 financial firms are looking for ways to program to deal with each new challenge. components, while centralised real-time and formats is only part of the story: “The benefits to payments processing such KRC Research 18 improve internal efficiency, differentiate This has led to an increasingly rigid management of payments gives banks the industry must accept that standardisation as cost-efficiency, agility, consolidated Lustratus Research 6 themselves from the competition, structure in these ‘first generation’ ability to see all of their payments activity of messaging and formats needs to be management and control, internal Securities Industry and Financial Markets maintain profit margins and generate new payments systems, which now comprise together in one place.” available to all institutions, and that it is efficiency and a resilient, scalable Association 16 revenues. Payments processing is a key many different pieces all rigidly locked The third part of this agile payments in fact only one small commoditised platform for innovation. TowerGroup 16 part of the overall financial transaction, together and delivering different pieces of environment, rules-based capability, is a component in the scheme of payments Transaction Performance Council 14 and is now being seen as an area of function. Many of these systems are software industry technique that has processing. It is vital that as many 7
  6. 6. M A R K E T WATC H | N E W S IN BRIEF Ascentn has strengthened its position in the European market after agreeing a partnership with Ridgian, a leading UK- based information management solutions provider. The alliance will help Ascentn address demand for its business process management (BPM) solutions. “As a Microsoft Gold Partner and an expert in LSE goes live with SharePoint, .NET, business intelligence and integration, the Ascentn BPM Performance Channels platform will significantly complement our existing portfolio and allow us to The London Stock Exchange (LSE) has these peaks creates additional trading further address the needs of our gone live with Performance Channels, a opportunities. With TradElect and Infolect customers,” said Jason Betteridge, high-speed delivery mechanism for its underpinning our markets, trading managing director at Ridgian. .NET-based Infolect information system. participants can be confident of receiving The Performance Channels service world-leading performance.” ensures that even during the highest peaks Over 40 customers have signed up to the in trading activity, market data is delivered service, with more orders in the pipeline. HP has launched its e-Discovery at high speed. “The introduction of Clients can continue to use the existing Workshop for the financial services Performance Channels sets a new Service Channel configuration whereby industry. The workshops entail a proven benchmark for customers requiring the data peaks are managed during periods of methodology, in which HP experts work lowest latency connectivity to the LSE high trading activity to ensure that client with companies to review their during peak trading periods,” said David systems are not overloaded. Performance information requirements, assess business, Lester, chief information officer at the LSE. Channels is available through 100- regulatory and governance drivers and “The service gives member firms using megabyte Extranex lines, which cut the shape a long-term strategy for algorithmic trading models greater visibility average round-trip network latency within information archiving. To mark the of the spikes and events that occur during the City to below one millisecond. launch, HP is giving away a free workshop periods of high trading activity. The to ten financial firms – simply e-mail immediate delivery of price data during to express an interest in the offer. Knowledge bank Central bankers have recommend a UPWARDLY MOBILE number of actions to address the risk- 41.5 billion mobile financial service transactions will be made by the end of 2011 – transmission channels brought by system driven by high-speed adoption of mobile banking facilities, especially by those interdependencies. The bankers expressed without access to banking their concerns in the Committee on Source: Juniper Research Payment and Settlement Systems report, The interdependencies of payment and settlement systems, which lays out a framework for analysing the risks of interdependencies, along with specific recommendations for the industry to FORMICARY LAUNCHES TVSEER address them. The report recommends that central banks and other authorities Financial services IT consultancy “We have been working with top tier review their policies in light of the Formicary has joined forces with broadcast investment banks to deliver this service, increasingly integrated nature of the monitoring technology firm eMedia based on superior speech recognition global financial infrastructure. Monitor to launch enterprise TV and audio technology, uniquely tailored to the monitoring agent TVSeer. financial services market,” said Philip The service has been designed for Miller, head of intelligent messaging at MBA Systems has launched IB.Net2, the financial professionals who need to know Formicary. “We are pleased to announce latest version of its Internet Broker events that will move or change the global that all information consumers are now in software for online trading. IB.Net2 market landscape, as well as those who are a position to benefit from this innovation.” includes a new front-end database (FED) interested in sector-specific news. facility, a new limit order system, an TVSeer monitors media broadcasts on a enhanced payment utility and an user’s behalf and delivers targeted alert expanded range of tradable instruments, notifications direct to the desktop via providing greater flexibility in use while instant message. Using advanced speech to enhancing account management and text technology, it monitors multiple enabling cost savings. It incorporates an channels in multiple languages 24/7, expanded range of tradable instruments automatically delivering relevant content to include unit trusts and other collective within 15 seconds of transmission. investments and employs straight- Specifically aimed at researchers, analysts through processing and a FIX interface and traders in financial services, TVSeer with EMX, to enable funds to be traded allows users to set up advanced search almost entirely automatically. filters for specified keywords and complex terms. Once triggered, an alert containing the summary is sent to the user, who can then choose to view the original clip.
  7. 7. M A R K E T WATC H | N E W S BEAMING WITH SUCCESS INTERVIEW: NICK JASPER OF APAK THE PAST YEAR HAS BEEN ANYTHING BUT BUSINESS AS USUAL FOR APAK A year ago, Apak was acquired by Sword market leader in supplying bureau services the front and provide Internet banking Group. We caught up with Nick Jasper, for finance firms, but also recognised the facilities, without having to change their senior business manager at Apak, to find immense potential of both the banking core system. Importantly, Beam Internet out what impact the takeover has had and divisions’ technical platforms in the banking contains a browser based user interface what the future holds. sector. Given that they both operate on a which can be quickly adapted to reflect a Microsoft .NET platform, bringing them bank’s corporate image ensuring What has the acquisition meant to you? together made sense. The synergy between familiarity for existing customers. It’s brought us the kind of opportunities them made the new entity greater than the Many banks are cautious about that are normally available only to larger sum of its two original parts. replacing their core system, due to the companies. As an international company, perceived costs and risks involved. But Sword Group gives companies access to What does that mean in terms of your with Beam they can do this in a modular technical and consultancy expertise on a products? way, for example by introducing the global basis, which isn’t accessible to We previously marketed our Aurius Internet banking element first. They could smaller software companies like Apak, banking system in the UK. But since implement a modern branch system though it was successful in its own right. Beam has an established name in the without changing the core system. Then, We’re getting significant introductions Middle East and Africa, and is expanding later on they could replace the core and we’ve got quite a large footprint now, rapidly into the Pacific Rim, we decided to system almost seamlessly. with encouraging opportunities for cross- create a family of products that could all fertilisation across the Sword Group. talk to one another, under the Beam So what does the future hold? We’ve already been dealing with other heading. As a result, Aurius has become You only have to look at TV and press parts of the group in terms of SharePoint Beam Core, an integrated retail system advertising over the past few months to consultancy, and we’ve introduced Sword which has its own workflow and comes see the new products – such as high rates to some of our customers using the complete with Internet banking facilities and linked accounts – being offered as Microsoft platform for distributed both for private individuals and banks look for more ways to raise funds. I information. businesses. We can also split out Beam dread to think how much those products Workflow as a standalone product. cost to develop on some of the older You’ve undergone some restructuring Beam Branch is a branch system based platforms. Tier-three and tier-four banks, over the past year – tell us about that. on .NET and SQL database, which has with more agile packages like Beam, will Our core wholesale and bureau operation been designed to sit across the front of be able to respond in this kind of business has continued as Apak, but our legacy systems but can also talk to Beam environment a lot more quickly, and that UK-based banking division and its existing Core. It can also be used as a standalone opens up opportunities for us. Watch this Apak Beam subsidiary, based in Dubai, have Internet banking application called Beam space for further announcements! been merged to form a single entity called Internet. So an institution that’s running Sword Banking Solutions. an old legacy system, for example, can Sword recognised that Apak was a UK rapidly implement Beam Internet across
  8. 8. M A R K E T WATC H | N E W S M A R K E T WATC H | N E W S IN BRIEF IN BRIEF SGAM Alternative Investments, a A new application from Albany Software wholly-owned subsidiary of Société will allow all sizes of business to take full Générale Asset Management, has selected advantage of electronic payments QuantFactory, the QuantHouse.NET including Faster Payments and Sepa. trading strategies development Albany ePay is integrated with Microsoft framework to develop, back-test and applications and will be available for all execute trading models. The suite of products allows financial firms to Deutsche Bank Financial Objects market sectors. Different versions will cater to individual organisations’ needs rationalise trading strategies and development cycle by using an integrated, rolls out BCS Integrity partners with Rabobank dependent on transaction volumes, internal processes and line of business. .NET-based development environment The solution is fully scaleable, allowing for across the research, development and Deutsche Bank has commenced its global Rabobank has chosen Financial Objects to employing Financial Objects’ proven additional functionality as business needs back-testing execution cycle. rollout of BCS Integrity from Business jointly develop a global counterparty credit migration methodology and experience we evolve. Control Solutions (BCS). risk management system. The three-phase can have a future-proofed system, utilising The first phase of the rollout will see the project will involve the migration of the latest Microsoft technologies, to solution deployed in Deutsche Bank’s Asia- Rabobank’s own Sky credit risk solution to significantly reduce our total cost of GaleForce Solutions is to release an on- Gig Werks has received two awards from Pacific branches, before being extended Microsoft .NET. ownership.” demand version of the full GaleForce Microsoft this year, most recently the across 40 countries, 3,000 users and more Once live, the system will span Michel van Leeuwen, managing director CRM for Financial Services application award for Excellence in Business than two million accounts. Rabobank’s global capital markets for worldwide capital markets at Microsoft suite, including wealth management, Productivity Optimisation in the Best Developed in a Microsoft-focused division. Users will be able to capture, commented: “We expect this project to set asset management, capital markets, Business Intelligence Solutions category at environment, BCS Integrity is a database- monitor and report credit exposure, and the precedent for credit risk management investment banking and retail banking- the Microsoft New York/New Jersey agnostic solution designed to enable better manage collateral operations against global platforms in the banking industry.” specific solutions. GaleForce Online CRM Partner Awards. The company pointed to decision-making for financial institutions limits. “This project will take the foundations of for Financial Services will be generally its Microsoft certifications and subsequent by providing instant visibility across the financial control,” said Nigel Walder, CEO “We wanted to retain the same level of Financial Objects’ award-winning available from GaleForce Solutions and status as a Microsoft Gold Certified Field account substantiation process. Deutsche of BCS. “Moreover, it demonstrates the business functionality available in Sky, and energycredit solution to deliver a selected partners in August 2008. Managed Partner as key achievements Bank chose the solution having been a bank’s commitment to constantly driving a joint development project soon became comparable system to credit risk managers that have helped it gain valuable long-term client of BCS Operational control improvements while reducing the obvious choice,” said Simon Calvert, in the financial services sector,” said Roland experience, boost credibility, increase Control Architecture, which monitors operational costs.” head of risk IT at Rabobank. “We expect to Jones, managing director of the risk revenue, and achieve an annual growth control hotspots and highlights issues as make significant savings compared to the management division at Financial Objects. rate of 50 per cent. they arise. cost of implementing an alternative system “This implementation is testament to from scratch, while retaining what we just how seriously Deutsche Bank takes its consider to be superior functionality. By
  9. 9. M A R K E T WATC H | N E W S M A R K E T WATC H | N E W S IN BRIEF IN BRIEF Platform Computing has formed a Over the next three years banks will financial services business unit, following a increasingly use Web 2.0 technology to year of strong growth in the sector. The deliver online wholesale banking services, company, which is a Microsoft partner and according to a report from Celent. Factors specialises in high-performance like the credit crunch are currently computing (HPC) management software, hampering the move to next-generation saw consistent strong growth across all major geographies including North FINSBURY ENHANCES Zignals launches offerings, and it will take 18 months before real progress is made, says the report. America, Europe and Asia, with financial services as a global driver. SPREADSHEET WORKBENCH online investment beta However, Celent says that many banks recognise the need to embrace Web 2.0, which will revolutionise the current Finsbury Solutions has launched the with a wide range of business functions Irish start-up Zignals has launched a beta service and access to powerful yet usable landscape with new systems emphasising A survey by Xenomorph has found that market’s first enterprise-wide spreadsheet including audit, risk and compliance, online service to transform investing for decision-support tools is often cited by customer experience, usability and 79 per cent of financial professionals management solution specifically designed trading, operations, finance plus client and active traders. Zignals will provide retail smaller investors as a key constraint on navigation while allowing users to take believe market data quality is an issue for for implementation on SharePoint 2007. regulatory reporting.” investors with state-of-the-art decision- improving the performance of their care of their core banking requirements. their organisations. More than half of The company has architected its flagship The solution features enhanced support tools and access to a financially investment decisions,” said Pat Brazel, respondents at the SIFMA event in June spreadsheet management system, functionality including a spreadsheet savvy online network that shares its own CEO of Zignals. “This is where we plan to said they spend significant amounts of Spreadsheet Workbench, to integrate management portal for rapid and remote independently rated investment strategies. change the status quo. Zignals responds to Accenture has opened the Accenture time validating data rather than on seamlessly with SharePoint, and offer deployment; a high-performance The beta launch of Zignals will focus on this need by democratising trading for the Payments Innovation Showcase facility at productive analysis to gain competitive enhanced functionality for improved spreadsheet comparison and analytic personalised services for the investor – online investor. its research and development technology advantage. In addition, 20 per cent of asset spreadsheet control, risk management and server; spreadsheet key performance easy-to-use alerts that can be tested, “Microsoft has provided the resources lab in France. The facility focuses on managers, investment bankers and hedge compliance across organisations. indicators, and high-availability tailored and delivered directly to any e-mail and the technology to develop original research and development in all fund professionals spend between 25 per “Microsoft SharePoint is the system of deployment options to provide increased address, PDA or mobile device; intuitive personalised communication services and facets of the payments business, including cent and 50 per cent of their time choice for enterprise document resilience and disaster recovery capabilities charting; and technical analysis – all optimise trading strategies using the yet-to- mobile communications and other point- validating data. management and collaboration,” said for critical spreadsheet applications. developed using the latest Microsoft be-launched Microsoft Solver Foundation of-sale technology, bank-to-corporate Jeremy Wood, director and co-founder of “Spreadsheet Workbench provides a technologies, such as Silverlight. technology. The highly intuitive services connectivity, processing, process models, Finsbury Solutions. “By enhancing scalable solution with powerful analytic Zignals was created through the we are building will open up a whole new biometrics, regulation such as the Single Microsoft has released its Insurance Value Spreadsheet Workbench to seamlessly and monitoring capabilities that collaboration of the Microsoft IP Ventures world for retail investors who want to Euro Payments Area (Sepa) initiative, and Chain (IVC) Software Factory for Acord extend SharePoint’s spreadsheet complement SharePoint Server 2007 and team, Enterprise Ireland, entrepreneurs Pat maximise the effectiveness of their security. Standards at the Acord Loma Insurance functionality, we have created a powerful allow organisations to manage detailed Brazel and Scott Tattersall, Manresa investment efforts without spending every Systems Forum 2008. The new solution solution for the management and control and complex spreadsheets,” said Bruce Partners, and angel investors. waking hour peering at screens.” comprises a set of development tools and of business critical spreadsheets, from a McKee, industry partner manager at “The complete absence of personalised assets that use the Microsoft .NET single environment. It enables Microsoft Financial Services. Framework to aid insurance firms and organisations to reduce manually intensive software vendors in the integration of spreadsheet-based processes and assists existing applications and business logic with Acord Web services. Targeting the property and casualty, and life and annuity businesses, the IVC Software Factory is an extension of Microsoft’s broader IVC Primergy sets OLTP efficiency record Architecture Framework. Fujitsu Siemens Computers’ Primergy Computers. “Our focus on fine-tuning TX300 server has set a new world record systems ensures that Primergy servers for efficiency in online transaction deliver their best performance in the real Third Financial Software has acquired processing (OLTP). The server shaved 25 world. The new TPC benchmark provides the rights to a unique proactive alerts per cent off the industry standard independent validation of our leadership technology. Following a period of joint benchmark for OLTP in the efficiency in an area that is very important to data development, the new technology has bracket. centre managers and financial controllers been launched specifically to meet the The TPC Benchmark E (TPC-E) is a new alike: the industry’s best price-per- compliance and regulatory needs of the OLTP workload developed by the transaction figures.” wealth management community. Fully Transaction Performance Council (TPC), a integrated into tercero, Third Financial non-profit corporation founded to define Software’s wealth management platform, transaction processing and database the technology provides wealth managers benchmarks. The test is based on with a solution for compliance, risk and portraying the activity of a brokerage firm, portfolio monitoring. The new module, with workload centred on the activity of tercero Alerts is already being processing brokerage trades. implemented at Third Financial Software’s The new record is one of the first early adopters and advisory clients. benchmarks to be achieved using Microsoft SQL Server 2008 – available from 30 August 2008 – with the Primergy TX300 S4. Lab results validate the server’s performance when coupled with SQL Server 2008, putting the industry-standard server straight into the top spot in the TPC-E price/performance tables. “Our customers benefit directly from our investment in extensive testing in our benchmarking laboratories,” said Jens- Peter Seick, vice president of the enterprise server business at Fujitsu Siemens THE TX300’S EFFICEINCY IS RECORD BREAKING
  10. 10. M A R K E T WATC H | N E W S IN BRIEF RDT and Moore Stephens have helped Towergate to increase its competitive advantage by standardising on a core underwriting system underpinned by a robust data warehouse. Towergate Underwriting is currently consolidating on the RDT Landscape core underwriting system, while Moore Stephens has created Bloomberg available the underwriting data warehouse. This completed ahead of schedule and on Windows Mobile aggregates business data from several sources. Microsoft has announced the broad news is critical for Bloomberg users, availability of Bloomberg’s real-time who are the financial professionals with services for Windows Mobile-based the most at stake,” said John Waanders phones. of Bloomberg. “Bloomberg on Microsoft The move, announced at the will further empower our global Apacs has revealed that the security of Securities Industry and Financial customer base to access Bloomberg many banks’ systems is driving criminals Markets Association (SIFMA) functions via one of the world’s most toward customers. In the UK, online conference, is in response to increased recognisable mobile platforms.” banking fraud dropped 33 per cent year- demands from financial professionals “Mobile access to news, data and on-year for 2007, but phishing attacks for on-the-go access to critical market other types of market information is no have become more frequent as criminals news, data and other resources. longer a luxury for today’s financial continue to target online banking Bloomberg's real-time financial services professionals, who need to be customers because the banks’ own information network provides business connected with real-time information systems have proved difficult to attack. and financial professionals with where their work takes them,” said More than 20,000 phishing incidents were comprehensive tools and data on the Craig Saint-Amour, director of US reported in the first half of 2008, an all-inclusive Bloomberg Professional capital markets industry solutions at increase of more than 180 per cent from service. Users will now be able to access Microsoft. “Through our collaboration, the same period last year. economic data, pricing, the latest Microsoft is able to provide Bloomberg financial and world news, Bloomberg on Windows Mobile phones, giving messaging, alerts, personalised market users real-time, productivity-enhancing Leading global alternative asset manager monitors and other functions from information services while they are Kohlberg Kravis Roberts & Co has virtually any phone running Windows away from their desktops and laptops.” implemented Finsbury Solutions’ Mobile 6. advanced Spreadsheet Workbench “Access to market information and software system. Based on the latest Microsoft technologies, the system provides finance, risk and audit Knowledge bank departments with enhanced transparency and control over the financial reporting CREDIT WHERE IT’S DUE process in accordance with the latest Global adoption of Islamic credit cards is expected to grow rapidly from its current financial legislation such as Sarbanes- base of less than one million accounts, reaching up to six million accounts by 2012 Oxley. Source: TowerGroup Portrait Software has launched Portrait New Business solution, to speed up policy issue and reduce risk exposure for life insurance providers. Designed to integrate Scalability milestone for Fiserv seamlessly with existing systems, the Fiserv CBS Worldwide has exceeded its Aperio. “We’ve consistently found that solution handles the entire new business performance goal of 10,000 concurrent SQL Server provides a solid, reliable acquisition process, from initial contact users for its Aperio customer interaction platform that scales up very well. It is an through to policy issue, based on management solution. excellent environment in which to underwriting best practice. By providing The testing was carried out jointly by work.” end-to-end process transparency, Fiserv, Microsoft and Portrait Software, “The results of this project traceability and reporting it reduces and involved multiple complex business demonstrate that systems based on bottlenecks and sales leakage and is both processes emulating deployment for Microsoft technology are scalable, compliant and auditable. major institutions. The results prove reliable and secure enough to handle that Aperio, which was created using large volumes of data at the heart of a the Microsoft Application Platform bank’s transaction processing including SQL Server 2005 Enterprise environment, and that they serve Edition (64-bit) database software, can mission-critical needs of our customers handle the demands of tier one, two and in the financial services industry,” said three banks with diverse deployment Kim Saunders, senior director of SQL requirements. Server marketing at Microsoft. “We’ve always been impressed by the scalability of SQL Server,” said David Saunders, technical architect at Portrait Software, whose framework underlies
  11. 11. M A R K E T WATC H | N E W S IN BRIEF Fujitsu Siemens Computers has won two categories in the Microsoft Partner of the Year Awards, with its Mobile Broadband embedded notebook customisation and offering taking the prize for OEM Hardware Solutions, System Building. “Developing products, solutions and services which directly VTB24 chooses DeviceLock address our customers’ needs and adapt to a changing marketplace is the basis of VTB24, one of Russia’s largest retail provides flexible control over a our strategy,” said Dr Bernd Kosch, vice banks, has chosen DeviceLock 6.3 to computer’s local ports and devices, thus president for strategic alliances at Fujitsu ensure end-point security for servers and addressing one of our most significant Siemens Computers. “These awards from desktop computers across its entire IT information security problems.” Microsoft confirm the added value our infrastructure, a distributed DeviceLock 6.3 features solutions bring.” heterogeneous system including comprehensive central management Windows and other operating systems. natively integrated with Microsoft Active “With the proliferation of high- Directory and Windows support, from Insurity and Microsoft have released a capacity removable storage devices NT to Vista. Users can control, log, survey detailing the role of technology available today, there is a much greater shadow-copy and audit end-user access for insurance firms recruiting ‘millennial threat of information leaks from the to any type of computer’s ports and generation’ (those born between 1981 bank’s IT system, as well as infiltration peripheral devices. The product includes and 2000) employees and customers. by destructive malware elements,” said presence detection and access control to The Millennials in Insurance Survey 2008, Anatoly Bragin, chief of VTB24’s local, network and virtual printers as well conducted by KRC Research, found that Information Security department. as Windows Mobile and Palm-based millennials want to use newer, more “DeviceLock is the software product that personal mobile devices. innovative technologies in the workplace can most effectively help us to fight such and also have heightened expectations threats. We used a previous version of as to how insurance companies should DeviceLock and found it a highly interact with them as consumers. Around functional and reliable product. It 91 per cent said that being able to work with ‘newer, innovative technologies’ in the workplace would make them more Knowledge bank likely to consider a potential job opportunity. GREEN SHOOTS Over 25 per cent of life insurers and 20 per cent of non-life insurers do not consider environmental impact when making IT decisions – however, insurers do emphasise performance metrics and products that help promote a green economy Thomson Reuters has extended its Source: Datamonitor mobile market information, economic data and news service to Windows Mobile devices, enabling it to access a much wider customer base. The development will allow financial professionals using Windows Mobile CREDIT SUISSE phones to have immediate access to the latest market information such as stock LAUNCHES DYNAMICOPS quotes, breaking news, alerts and personal market monitors, from virtually Credit Suisse has launched DynamicOps, company’s unique environments. anywhere. an independent company to market its “In the case where self-provisioning for Virtual Resource Manager (VRM), a virtualised servers has been deployed, virtual infrastructure management VRM enabled us to reduce our Dutch insurer has chosen application. provisioning lead times from weeks to the Example Platform from Duck Creek Credit Suisse first deployed a virtual minutes,” said Stephen Hilton, managing Technologies Europe, to provide direct- infrastructure in 2005, and realised that director for enterprise servers and storage to-insured private motor quotations and while virtualisation improved resource at Credit Suisse. “This has resulted in underwriting transactions. Based on utilisation and business agility, it also more efficient server utilisation and lower Microsoft .NET, the platform will deliver increased operational complexity. VRM capital costs. An additional benefit is the’s policy application and was initially developed by the Credit dramatic improvement in our ability to quote process, enabling the company to Suisse Global Research and Development respond rapidly to business needs.” develop and deploy products quickly Group. It has been in production for while effectively scaling the business. more than two years and manages Steve Yatko of Credit Suisse and Leslie thousands of virtual desktops and Muller of DynamicOps give their views servers at multiple Credit Suisse data on virtualisation in our round table centres in four locations worldwide. discussion on page 26. Based on open technologies like Web services, Microsoft .NET Framework 3.0, and Windows Workflow Foundation, VRM provides out-of-the-box policies, workflows and provisioning templates which can be customised to each
  12. 12. COVER STORY: KAS BANK ayments systems are critical to the P standards, operations of any bank. As the global payments picture develops to include new regulations, new increasing numbers of international transactions and innovative methods of payment, banks are under increasing pressure to ensure that their IT can support them in terms of workload, compliance and competition. As a supplier of investment management, custody, clearing and settlement services KAS Bank understood these issues only too well. Based in Amsterdam and with 200 years of banking history, KAS Bank is among the top 100 Swift users, with over 95 per cent of its transaction messaging being carried over the Swift network. The company values both past experience and forward-looking innovation, an attitude that is amply illustrated by major IT projects such as its implementation of Microsoft BizTalk Server and BizTalk Accelerator for Swift (A4Swift), a product extension that enables message formatting and connectivity to the Swift network. The strategic migration of all its banking applications from a mainframe environment onto Microsoft .NET gave KAS Bank the SWIFT “ WE WANTED TO BE SURE THAT THE NEW ENVIRONMENT WAS ABLE TO HANDLE A HIGH AND TRANSACTION LOAD. MICROSOFT SURPASSED THE OTHERS IN TERMS OF BOTH PERFORMANCE AND COST ” SURE KAS BANK IS LEADING THE WAY IN SWIFT PIM VAN DER HORST, CONNECTIVITY WITH THE IMPLEMENTATION CIO AND DIRECTOR OF ICT, KAS BANK OF MICROSOFT BIZTALK ACCELERATOR FOR SWIFT. JACQUI GRIFFITHS FOUND OUT HOW THE PROJECT IS ALREADY DELIVERING SIGNIFICANT BENEFITS 21