Retail Banking in Europe – Alior Bank case study

www.comarch.pl

Alior Bank
- case study

Sławomir Gierek
Comarch
Retail Banking in Europe – Alior Bank case study

Agenda

• What is Alior Bank?

• How does technology makes Alior Bank unique?
• Focus on front end excellence
• Results after four months of operation
• A few words about Comarch
Retail Banking in Europe – Alior Bank case study

What is Alior Bank?

• Key facts:

– the biggest banking start-up in European

banking in the last 30 years
– funded by the Carlo Tassara Group
– equity injection of € 400 M paid in full
– formal creation of Alior Bank SA in April 2008
(after regulatory approval)
Retail Banking in Europe – Alior Bank case study

What is Alior Bank?

• The goal: to create a valuable bank
2012 figures:

– Sizable
• captured market share of 2% to 4% depending on the
client segment
• 920 K clients: 200 branches, 8 business centers, 400
agencies

– Profitable
• Revenues € 330 M
• Net profit € 100 M (2012)
• Cost/Income 54%, ROE 25%

– Entrepreneurial
• Net profit at bank level in 2011-2012, fourth year after
launch
• Break-even at branch level: 14 months after branch start
 Retail Banking in Europe – Alior Bank case study

Three pillars of the Alior Bank strategy

1. Best quality, motivated staff 2. Unique client proposition 3. Lean, centralized organization
with modern IT/operations
solutions

•Excellent reputation at the local
market level
•Strong track record
•Strong results orientation
•Entrepreneurial reward/bonus
structure
• Attacking mid market
(companies and individuals)
with upper shelf products
• Fast decision making and
time-to-market
• Innovation
• Brand
• IT systems at a fraction of the
previous costs (1/3)
• Full centralization of
operations
• Automation allowing for lean
organization structures (75%
of Alior bank staff is facing the
client)
Retail Banking in Europe – Alior Bank case study

High quality staff

• Experienced and professional • Carefully selected, verified

• Average banking experience of 8 • 31,200 candidates
years
• 7,000 interviews
• Diverse
• 1,540 people hired
• From 23 banking institutions and 5
• No external head hunters used (except
countries
for 2 people)
• With a proven track record
• Carefully and comprehensively trained
• Many prestigious award winners
• 110,000 hours of Alior training in 2008
Retail Banking in Europe – Alior Bank case study

Unique client proposition (examples)

• Individuals:
– Current Account with
automatic Overnight, free
of charge
– ATMs worldwide free of
charge
– Independent airline credit
card for frequent flyers
– Fully integrated brokerage
services available in all
branches as well as the
Internet
• Companies:
– Several variations of
current account packages
– Autodealing
– Full lending offer focused
on working capital loans
– Leasing and factoring
services (planned)
Retail Banking in Europe – Alior Bank case study

Centralized IT and operations

Document Credit Front Contact

Internet Agencies Credit
Workflow processing Office Center
bureau

Middleware SOA Card

authorization

Credit Scan
Inv/HR Treasury Brokerage archive
monitoring

ATM

Profile 7.2 IBS / FMS (General ledger and transactional system)

Reporting Payment SWIFT

Retail Banking in Europe – Alior Bank case study

Efficiency in IT and operations

• Complete infrastructure built in 12 months
• Number of IT systems reduced by half (100 vs 200)
• High level of technology consistency
• Cost of IT systems at 1/3 of the typical level
• IT staff at 4.5% of the bank’s FTE number (planned for E2009 with
150 branches) vs 7% (benchmark)
• Reduction of paper use by 50%
• Extensive use of outsourcing: cash logistics, card management,
document management, mass printing…
• „Shared infrastructure” SWIFT access
• 75% of staff is facing the client
Retail Banking in Europe – Alior Bank case study

Focus on front end excellence

Document Credit Front Contact

Internet Agencies Credit
Workflow processing Office Center
bureau

Middleware SOA Card

authorization

Credit Scan
Inv/HR Treasury Brokerage archive
monitoring

ATM

Profile 7.2 IBS / FMS (General ledger and transactional system)

Reporting Payment SWIFT

Retail Banking in Europe – Alior Bank case study

Front Office Front

Office

• CAFE platform based (Comarch Front End)

– Modern architecture with a portlet based advisor
desktop
– Dedicated tools for branch managers and
central sales network management
– CRM, customer management and teller
functionality combined in a single, browser-
based tool
– Central user management through a domain
controller and Comarch Access Management
• Innovative use of interactive displays for better
communication with clients
• Going green: saving trees by significantly
reducing the use of paper
• Fully integrated with Document Management
– application generated barcodes
– images provided by outsourcer
Retail Banking in Europe – Alior Bank case study

Contact Center Contact

Center

• Agents have instant access to data and

functionality available in other channels –
no synchronization necessary
• Web based application allows for initiating
calls and responding to incoming ones
• Seamless integration with recording
functionality (Witness)
• Supervisor and manager functionality
included
• Support for marketing campaigns –
including integration with ACD
 Retail Banking in Europe – Alior Bank case study

Credit Processing Credit

Processing

aximum automation
– workflow based (simple cash loans in 30 minutes)
– decision making engines
– automatic monitoring and administration

aximum centralization of functions

– loan approval
• analyses, policies, score cards
• expert credit committee for non-standard loans
– administration, monitoring and collection
• all functions central/regional
– fraud detection
– credit process improvement and quality assurance
– central on-line archive

aximum flexibility and integration:

– process definitions and screens are defined not coded
– printout management (with document templates)
– integration with DMS (barcodes)
Retail Banking in Europe – Alior Bank case study

Internet Internet

• Based on Comarch Internet Banking

and Comarch Internet Investments
• Unparalleled in available
customizations, yet easy to use and
understandable
• Includes a mobile version for web-
enabled mobile devices
• March 2009, awarded by Gazeta
Bankowa: „The Best Internet Banking
System in Poland”
• Corporate and Intranet portals are
managed with the Comarch Content
Management System
 Retail Banking in Europe – Alior Bank case study

Alior Bank – results after four months

• more than 100 branches Rumia

Wejher
Słups
owo
k Gdynia
• more than € 300 M in deposits G Suwałki
Koszalin
dań Elbląg
• Szczecin sk
more than € 100 M of credit granted
Grudziądz
Bydgoszcz Olsztyn Białystok
• more than 100 thousand clients Inowrocław Toruń Łomża
WłocławekOstrołęka
Gorzów Wielkopolski Sokołów Podl.
• more than 2000 brokerage office clients Poznań
Płoc
k
Warszawa Siedlce
Zielona Góra Wołomin
• more than 200 private banking clients Łódź
Mińsk
Pruszków Mazowi
Kalisz
Leszno ecki
Legnic
a Chełm
Wroc Radom
Wrocław Piotrków Tryb.
ław Lublin
Świd Częstoch
owa Kielce Stalowa Wola
nica Opole Zamość
Business Kędzi
Zabrze Olkusz Kraków
Centers erzyn
Gliwice Mysłow
Koźle Dąbrowa
ice
Sosnowiec
Wadowice
Katowice
Branches
Tychy
Chorzów G.
Bielsko- Tarnów Rzeszów
Biała Krosno
Retail Banking in Europe – Alior Bank case study

A few words about Comarch

• International IT software house and integrator, employing ~3500
people with € 160 M in revenue in 2008
• Active on various markets including: financial services,
telecommunications, public sector, ERP software, trade and service
providers
• Established in 1993 by current CEO and major shareholder Prof.
Janusz Filipiak, listed on the Warsaw Stock Exchange since 1999
• The ‘Banking, Insurance & Capital Markets’ Business Unit delivers
solutions to various parts of the financial market
• The banking segment concentrates on front end solutions including:
Internet banking and Internet portals, document management, loan
origination, sales network management and CRM
Retail Banking in Europe – Alior Bank case study
www.comarch.pl

Thank you!

Comarch SA:
info@comarch.com
www.finance.comarch.com

Alior Bank:
www.aliorbank.pl