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FöreningsSparbanken
Gert Engman
Group EVP and Chief Information Officer
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FreningsSparbanken Gert Engman Group EVP and Chief Information - - PowerPoint PPT Presentation
FreningsSparbanken Gert Engman Group EVP and Chief Information - - PowerPoint PPT Presentation
FreningsSparbanken Gert Engman Group EVP and Chief Information Officer 2 IT-costs and EMU preparations 3 IT-costs FSPA group % SEK M 2 600 19,5 2 400 19,0 2 200 18,5 2 000 18,0 1 800 17,5 1 600 17,0 1 400 16,5 1 200 16,0 1
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IT-costs FSPA group
1 000 1 200 1 400 1 600 1 800 2 000 2 200 2 400 2 600
1999 2000 2001 15,5 16,0 16,5 17,0 17,5 18,0 18,5 19,0 19,5
IT-costs IT-costs as % of Group total costs
Development accounts for approx. 30% of costs and operations and maintenance for the balance
SEK M
%
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Transactions and use increase but the cost of IT is constant
Amw transactions/channel – per day average since 99-07-01
0,0 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 9 9 J u l y S e p t N
- v
J a n M a r M a y J u l S e p N
- v
J a n M a r M a y J u l S e p N
- v
J a n M a r M a y Millions transactions per day Intern. Branch ATM Tel 1 900 2 000 2 200 MSEK IT costs 1999 –> 2002
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Application and IT architecture
- Yesterday
– Early core banking systems were monoliths – with rigid integration of satellites – Objects in the ’90s – too difficult to re-use
- Today
– Components – promises re-use, less complexity and shared development – Striving for standards in software – From silo to multi-layered architecture – Software standards make it possible to buy, not build
– Leads to cheaper and faster IT
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On-going IT projects
- New core banking system
- Component based middleware platform
- EMU
- Basel II
- Data warehousing and CRM
Our plan is to include the majority of these projects in “normal” IT expenditure - with the exception of EMU.
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Cost development scenario
1 2 3 4 5 6 7 8 9 10 11
Present system New system 0% real time New system 25% real time New system 50% real time
Effects of implementation of new core banking system
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- Alignment and conversion of IT systems
- Education and information to customers and staff
- Physical exchange of bills and coins
Main EMU-related projects
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EMU - political alternatives Probability estimates by FSPA’s EMU group
1 EMU entry Jan 1, 2005. Transition period. Money exchange January, 2006. 2 Direct transition Jan 1, 2006. Money exchange January, 2006. 3 Direct transition Jan 1, 2005. Money exchange January, 2005. 4 EMU entry Jan 1, 2007. Transition period? Money exchange? Probability 50 % 35 % 5 % 10 %
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EMU – master plan
2002 2005 2003 2004 2006
Start money exch. Election Refer- endum EMU entry EU OK Referendum date set Scenario analysis, planning Acceptance tests IT and implementation Adjustments and pre- parations ”in advance” (mainly IT) Adjustments/Preparations
Transition
Money exch.
Register conversion
Application IT adjustments (contd.)
National plan FSPA’s plan ERM2 ? Transition period Forewarning period Qualified period of preparation Transition period
Money ex- change
Formal plan
IT initiation
Program finish
- Developm. of systems & rou-
tines for register conversion Preparations for register conversion IT systems clean-up Out- come Appli- cation
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IT-related EMU costs
- EMU-related projects are expected to
increase IT costs by some SEK 300 M in 2003 and 200 M in 2004
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If the vote is NO...
- Major cleaning up of systems
- Replacement of older systems due for
retirement
- Sunk costs approx. SEK 200-250 M
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