Overcoming the Challenges of
Modernizing Core Banking
Systems
Banking Vietnam, an IDG event
Anselm De Souza
Vice-President, Asia Pacific Sales
System Access Limited, Singapore
17-19
th
May 2006, Melia, Hanoi, Vietnam

Agenda
•
Introduction
•
Key Questions
–
Why Change
–
Selection Criteria
•
Overcoming the challenges
–
Key Success Factors
–
Case Study – the Vietnam International Bank

Introduction

Key Questions

•
Vietnam economy grew 8.4% in 2005
•
State’s 10-year Development Plan for the
Banking Industry
–
Adopt international banking and business best
practices
–
Better corporate governance
–
Market-based monetary management
–
Modernization of common systems
–
Promote Public Trust in the banking system

Vietnamese Banking Environment -
Overview
•
The World Bank’s initiative to modernize
the Vietnam Banking Industry
•
Vietnam is still largely unbanked
–
45% of money in cash
–
>50% of local business transactions done
outside the banking system
–

-- Asia Times Online, April 19, 2006

Project implementation fees
Software license fees
Maintenance and support fees
System Integration fees
Infrastructure costs
Project implementation risk
Significant process change
Short-term customer service
level degradation
Costs
FinancialNon- Financial
Benefits
Costs

Revenue from enhanced
products & services
Quicker time to market for
new products
Lower business operation costs
Improved customer retention
Reduced manual
exception handling
Reduced errors
Entry to new market segment
Better positioned to
grow
Better customer service
Costs

Sample
Costs -Benefits

How do we
choose?
Criteria for
Selection of Core
Banking
Solutions