Banca Transilvania Grows Customer Base by 15%, Boosts Transactions by 20%, Cuts End-of-Day Close Time 50%, Accelerates New Banking Services 200%
 
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Banca Transilvania Grows Customer Base by 15%, Boosts Transactions by 20%, Cuts End-of-Day Close Time 50%, Accelerates New Banking Services 200%

  • Oracle Customer:  Banca Transilvania
    Location:  Cluj-Napoca, Romania
    Industry:  Financial Services
    Employees:  6,000
    Annual Revenue:  $500 Million to $1 Billion

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.

 
Subsecond Processing for 95% of Card Transactions

A word from Banca Transilvania

  • “Running Oracle FLEXCUBE on Oracle Exadata has transformed our business potential and enabled us to strengthen our leadership position in the competitive Romanian financial services market.” —Marius Ursuti, Director IT, Banca Transilvania

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.

 
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Challenges

  • Accelerate time to market for new banking products and services
  • Enhance offerings to improve the customer experience
  • Provide a high-volume online environment to accelerate bank transactions
  • Deliver timely information to managers to improve business decisions
  • Support continued rapid growth with a scalable and high-performing IT infrastructure
  • Manage an increased workload while ensuring high availability
  • Cut operational risk with world-class IT support

Solutions

  • Increased customers by 15% four months after launch of Oracle FLEXCUBE on Oracle Exadata and Exalogic
  • Grew transaction volumes by 20% in the same period
  • Processed 95% of card transactions in less than one second
  • Exceeded 3-second response target required by VISA and MasterCard
  • Cut daily close time by 50% from eight hours to four hours
  • Made last day’s trading figures available at start of next business day to improve decision-making
  • Developed new customer offerings 3x faster
  • Ensured switch to disaster recovery site in three minutes with Oracle Active Data Guard
  • Cut risk and cost with Oracle Platinum Services monitoring and patching

Why Oracle

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.”

Implementation Process

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.

Partner

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.