Banca Transilvania, one of Romania’s largest and fastest growing banks needed to optimize processes and cost efficiencies to grow leadership in an increasingly dynamic, competitive, and global market. Its goal was get innovative savings schemes and new loan solutions into the marketplace faster than its competitors.
The bank wanted to streamline compliance with Romanian and international regulations governing risk management and traceability. Faster processing of its four terabytes of core banking data would boost transaction speeds for customers and eliminate bottlenecks at peak periods. The bank also wanted to improve the efficiency of database administrators by simplifying system management and support and to cut ownership costs, while meeting expansion targets.
Banca Transilvania replaced its legacy Misys Banking Systems applications with the best-of-breed processes in Oracle FLEXCUBE Universal Banking. The bank’s IT team uses Oracle FLEXCUBE’s out-of-the box functionality to enhance existing offerings, such as loan applications and deposit accounts, to continually improve the customer experience. Oracle FLEXCUBE’s service-oriented architecture (SOA) and process-driven functionality enable the bank to develop new services 3x faster than its legacy solution.
Processing 1.5 million transactions daily, the bank has increased its client base by 15% and grown transaction volumes by 20%, just six months after migrating entire banking operations to the Oracle platform. Customers were quick to praise the intuitive streamlined credit card and online banking processes built using FLEXCUBE, which achieve consistently high scores in the bank’s client satisfaction surveys. Back-office staff adopted the new processes with minimal training, due to the solution’s ease of use. In addition, Oracle FLEXCUBE complies with all international financial security and traceability standards, which makes it easier for the bank to meet regulatory requirements and will cut administration costs.
Oracle Exadata Database Machine and Oracle Exalogic replaced HP Superdome to create a resilient, high-volume, online environment that enables the bank to process transactions between 3x to 4x faster—completing approximately 95% of transactions in less than one second. In addition, Oracle Exadata delivers consistent response times of less than three seconds for credit card transactions, which exceeds targets set by VISA and MasterCard. Banca Transilvania now handles 500,000 card transactions daily, with no performance degradation at peak times.
Banca Transilvania also leveraged the scalable, high-performance banking platform to build a new, 24/7, internet banking offering, replacing a limited online banking service that was only available during business hours.
With Oracle Exadata, Banca Transilvania now needs only four hours instead of eight hours to process end-of-day figures for its operations that include 550 branches, 850 ATMs, 20,000 points of sale, 2 million active customers, and 3.5 million accounts. As a result, it can deliver up-to-date trading figures for line-of-business managers, analysts, branch managers, and board members at the start of each business day. Limitations of the bank’s legacy application had often delayed the previous day’s figures until the following afternoon, having an impact on critical decision-making.
In addition, the IT team now consistently meets service-level targets, increasing internal stakeholder satisfaction.
Banca Transilvania has used Oracle Financials Accounting Hub for more than five years to enforce compliance with corporate accounting policies across all lines of business and accelerate the monthly close with more rapid error-and-exception resolution. The bank is migrating Oracle Financials Accounting Hub to its Oracle Exadata platform to further increase financial reporting speed and efficiency.
Oracle Active Data Guard reinforces the bank’s unbreakable architecture through real-time data replication from the live environment to the standby database. It can now switch from the production environment to the disaster recovery site in less than three minutes in the unlikely event of total system failure. As a further precaution, the system held two previous days’ data in a flashback cache. The bank offloads ad-hoc queries, reports, testing, and backups to the standby database, which eliminates idle redundancy and frees up the production database to manage increases in workload.
Banca Transilvania cut operational risk and reduced support costs with Oracle Platinum Services, an enhanced support option for high availability and performance, exclusively available to Oracle Premier Support customers running certified configurations of Oracle engineered systems. Oracle Platinum Services, available at no additional charge, helps Banca Transilvania prevent problems by staying current on system updates and frees IT resources with Oracle expert patching services. Around-the-clock, remote fault monitoring also helps sustain high system availability and gives the bank’s system managers access to senior Oracle engineers within minutes of issue detection. By relying on Oracle experts to handle patching and monitoring, the bank decreases risks, lowers costs, and reduces IT support workload, ultimately simplifying IT management and helping to speed return on investment for its new, mission-critical banking platform.
Banca Transilvania is implementing Oracle’s Siebel Customer Relationship Management (CRM), which it will roll out to 2,500 sales management users over 18 months. The bank will run Siebel CRM on the same Oracle Exadata instance, thanks to its scalability, avoiding the cost of upgrading or purchasing additional nodes. The bank is also consolidating its Oracle estate by purchasing Oracle Financial Services Anti Money Laundering, which it will operate on the same Oracle Exadata platform.
Banca Transilvania also evaluated core banking solutions from legacy supplier Misys Banking Systems but chose Oracle FLEXCUBE for its best-of-breed applications, open architecture, flexible deployment options, and scalability.
“Oracle FLEXCUBE is built on leading-edge technologies, which will sustain our current growth rate through ongoing service innovation and unrivalled customer response times,” said Marius Ursuti, director IT, Banca Transilvania. “Oracle’s commitment to further enriching its functionality and integration capabilities will support our development for years to come.”
After choosing Oracle FLEXCUBE, the bank compared the traditional and engineered systems approach before selecting the hardware required to underpin its transformation and consolidation. It conducted a proof of concept during which Oracle Exadata and Oracle Exalogic delivered processing speeds 3x to 4x faster, on average, than a platform based on Intelx86 and HP Superdome.
“Oracle Exadata achieved response times of less than one second for 95% of transactions while processing 50 transactions per second, which is almost double our volume at peak times,” said Marius Ursuti, IT director, Banca Transilvania. “We saw consistent, sub-three-second response times, whereas response times were much longer—sometimes as high as 10 seconds—using an Intelx86 platform.”
Banca Transilvania carried out the implementation, performance testing, and user acceptance testing for Oracle FLEXCUBE with local Oracle Platinum Partner Trend Import-Export SRL. Oracle Advanced Customer Support Services provided best-practice recommendations to the bank and Trend Import-Export attended to building the high-performance, maximum availability architecture based on Oracle Exadata, Oracle Exalogic, and Oracle Data Guard.
“We migrated to the new platform in a single, seamless, big-bang approach with less than one hour of downtime and no disruption to our customers,” Ursuti said.
Banca Transilvania runs Oracle FLEXCUBE and its business intelligence applications on six nodes of the Oracle Exadata Database Machine Quarter Rack. Internet banking uses another three nodes and card systems use one node. The forthcoming Siebel CRM implementation will use four nodes. This leaves two nodes of capacity to handle anti-money laundering and risk management activities or to manage increased workload.
Trend Import-Export, an Oracle Platinum Partner and Oracle Exadata specialist, and long-term provider to Banca Transilvania, continues to support the bank when required and provides a two-hour, on-site response time.
“We can rely on the expertise of Trend Import-Export and Oracle Advanced Customer Support Services to ensure 24/7 availability and unrivalled performance for this mission-critical platform on which the bank’s business and reputation depend,” Ursuti said.