The Zurich private bank Clariden is using the Avaloq Banking System to operate its newly opened branch in Singapore . Following on from its success at Barclays Bank Singapore , Avaloq’s standard software is once again proving the worth of its international compatibility and multi-client capabilities. Comit, with its international project expertise, is acting as Avaloq‘s trusted premium implementation partner.
Avaloq supports the Clariden strategy.
In November 2004 the Zurich private bank Clariden made the decision to open a fully-fledged booking centre in Singapore. The new branch is intended to increase the level of awareness of the Clariden brand in Asia while offering the same products and services as the parent company in Zurich or comparable peers.
To set up a branch with clout in one of the world’s most important financial centres, Clariden wanted to use the tried and tested Avaloq Banking System. The parent company has been successfully operating Avaloq standard software since 2001 for its 680 employees in Switzerland. The technical solution for Singapore also needed to be cost-effective and quick to implement.
This goal could only be achieved with a lean operating structure based on the existing infrastructure and organisation of the Clariden Group in Switzerland.
Implementation by Comit.
In March 2005 Clariden began the Singapore project with Comit as implementation partner. Comit brought on board its expertise from the business unit project at Barclays Private Bank in Singapore and, as a premium partner of Avaloq, has many years of experience in implementing the Avaloq Banking System.
The project to set up the Singapore business unit and introduce the Avaloq Service Pack 2.2.5 was challenging and ambitious in many aspects and needed to be implemented in less than nine months.
In an initial phase, business and IT representatives from the Bank took part in numerous workshops with Comit to define the necessary business cases and to identify the additionally required functions not available in the existing system.
Because of the decision to position the new branch with its own trading and settlement operations, an international strategy was chosen that had not previously been implemented with the Avaloq Banking System. Unlike existing installations, in which the parent company provided all central services (trading, settlement, etc.), the new approach necessitated the setting up of an independent network of depositories and correspondents, so an application for an independent SWIFT membership was needed.
Avaloq underscores multi-client capabilities.
Thanks to the flexibility and response capabilities of Avaloq, it was possible to expand the MESI (Multi Entity Single Instance) multi-client concept quickly and without major expenditure. In the case of Clariden, both of the legally independent clients are now able to access the same database, while meeting all the necessary security requirements. SWIFT had already authorised a separate SWIFT address for Clariden Singapore back in July, wich became available in September. Almost simultaneously, the Monetary Authority of Singapore (MAS) granted an offshore banking license.
The second phase of implementation involved the technical roll-out. The shortcomings identified during the analysis phase and the regulatory requirements of Singapore were developed and implemented in only three months through iterative prototyping. Numerous interfaces to existing peripheral systems were given high priority by Clariden and could be easily adapted to the Avaloq standard software.
Another major challenge was to train the Clariden staff in Singapore. Training took place partly on site and partly in Zurich. The Singapore staff was also involved in the integration and acceptance tests.
Successful launch.
A detailed cut-over plan for the weekend of 12 and 13 November guaranteed the smooth launch of Avaloq. The following Monday morning, 14 November 2005, all systems were stable and running according to plan without any significant problems.
In accordance with Asian business practices the Clariden Singapore branch was officially opened on 25 November 2005 – in offices designed according to Feng Shui principles – with a traditional lion dance.
A point worth noting is that the successful launch in Asia did not affect existing clients or the approximately 680 Clariden employees in Switzerland in any way.
International strategies become calculable.
The minute project planning enabled major challenges such as the special accounting arrangement with Asian Currency Unit/Domestic Banking Unit (ACU/DBU), the extensive reporting to the Monetary Authority of Singapore (MAS) and the training of employees in Singapore to be mastered without a hitch. This project also showed that with an existing Avaloq platform it is possible to open a fully-fledged new branch abroad in less than nine months. The prerequisite is flexible, multi-client capable standard software and professional project work with a focus on time, costs and functionalities. The collaboration with Avaloq and Comit offers both: a modern core banking system and an implementation partner with extensive banking expertise and IT competences.
The reputedly risky “time-to-market push” into international growth markets where the regulatory framework has evolved has therefore become a calculable opportunity for providers of financial services. The release and change management of parent company and branches is universally standardised and benefits from the effects of synergies.
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