OTP Bank Ukraіne (previously "Reiffeisen Bank Ukraine") is a Ukrainian bank with 100% foreign capital. It operates at the Ukrainian banking market since 1998. By the overall assets amount it is one of the largest banks of Ukraine.
Intensive growth together with an aggressive strategy of enterprise expansion to the regions have to be backed up by the complex information system in any case. In such conditions accurate data analysis, reliable information storage and fast processing become prime conditions for the efficient work flow at such a large bank as Reiffeisen Bank Ukraine (currently OTP Bank Ukraіne). In 2002 the bank had more then 250 employees and 7 regional subsidiaries with the plans of opening about 10 subsidiaries annually.
To guarantee a fast business start, since the beginning of its activity in Ukraine, Reiffeisen Bank was quite successfully utilizing different information systems from local developers, but because of rapid development of the bank itself, establishment of numerous new subsidiaries, extension of the customer base, a serious end-to-end information management system had to be introduced. The one that would not only allow automating the business-processes, but also would be scalable in all regional subsidiaries.
The issue of the biggest impact, as seen by the bank accountant Iryna Izmaylova, was that the old systems were not integrated, which made it necessary to transfer the data from one system to another manually just to present daily consolidated accounting. Repeated data processing not only led to increase of expenses, but also caused a great risk of producing corrupted information due to "human factor".
Moreover, at some stage, working with many different systems slowed down overall activity of the bank and jeopardized the plans for regional development. As a result of internal risk assessment, a decision to implement a single Corporate Information System (CIS) was taken to automate bank accounting. Therefore, a tender was announced in order to select the best business-solution and the most professional consultant.
Obviously, top management of the bank made strict demands to the system functionality and implementation terms. It was necessary to automate the whole payroll accounting and human resources management within a short space of time.
In addition to the standard functionality, the bank expected the system to provide:
- possibility of centralized administration from the head office;
- distant access to the data system;
- easy connection of new subsidiaries.
Three companies took part in the tender, each of which offered different CISs with the functionality that "met the requirements".
The first tender participant was a well-known company with good reputation. The solution offered a focus on the modules of payroll accounting and HR management, while the module of fixed assets accounting was underdeveloped and the functionality of purchase records and stock management were absent altogether.
The solution presented by another vendor, unlike the previous one, was multifunctional, although it could not be implemented within requested time due to complicated system setup procedures. This particular project constraint introduced a potential risk for the accounting department to use two different systems simultaneously for a long while.
Finally, the project was awarded to Іnnoware, which specializes in ERP implementation and enterprise management accounts setup. Taking into account existing business-processes of Reiffeisen Bank, Іnnoware offered a business-solution based on Mіcrosoft Busіness Solutіons-Navіsіon platform (currently Mіcrosoft Dynamіcs NAV) that completely met the high requirements of an international organization and could save time and efforts thanks to efficient implementation. Apart from this, the system could be integrated with the bank operational system Mіdas Kapіtі. "A great influence on the positive decision had the fact that Іnnoware team possessed wide experience of successful implementations", adds Iryna Izmaylova.
In addition to the functionality initially requested by the bank, Mіcrosoft Busіness Solutіons-Navіsіon (currently Mіcrosoft Dynamіcs NAV) ERP-system had already had additional features that would provide the means to control the processes inevitably occurring sooner or later:
- fixed assets management;
- internal bank logistics and stock records;
- electronic signature;
- work-time registration;
- integration with Credit Card Processing, back-office, cash desk and MS Office systems.
Also, implementation of the standard high-quality product from the world-wide developer eliminated the problem of unclear ІТ costs.
In order to complete all planned tasks within allocated timeframe, the team of the bank professionals and Innoware consultants worked really hard. Firstly, bank specifics meant that the solution had to be adjusted for this particular business. Secondly, rapid growth of the bank led to constant system modifications overlapped with HR policy changes, which put the initial plan aside.
Nevertheless the project was finished on time. As a result of Mіcrosoft Busіness Solutіons-Navіsіon (currently Mіcrosoft Dynamіcs NAV) implementation, two old systems were replaced with one product. The problems of separate management systems, double data input and possible information distortion were eliminated. The bank had a possibility to use automated payroll accounting in 1,5 month after the system implementation. On top of that, the system solved the problems of internal customer services management, automation of the document circulation, issues of securing the data confidentiality and minimization of the "human factor". Bank obtained a single interface for all system users, regardless to their location, as well as centralized administration and support.
User friendliness of the system was proved by the fact that the training on the system use in newly opened subsidiaries in Dnipropetrovsk, Zaporizhzhia and Donetsk was done by the employees of Reiffeisen Bank. The system implementation in a new subsidiary now may take from several hours to 2 days.
Vadim Utkin, chief executive of Іnnoware, stated: "Banking specifics required a complete immersion of the project team into this business environment. We cooperated with several departments, including ІТ and accounting department. The correlation of professionalism and experience brought positive results ".