CS Served as a Technological Partner in Moldindconbank’s IT Landscape Transformation Program

CHALLENGE

In 2021, Moldindconbank (Republic of Moldova) launched a large-scale transformation program – MICB4YOU. The program was part of the bank’s strategy to invest in digital technologies and openness to innovation. The transformation involved optimizing the operational model, as well as transforming the IT landscape to increase productivity, efficiency, and compliance with the best international banking practices.

The bank conducted a tender to determine the supplier of a new core banking system (CBS) with the aim of:

• Simplifying the architecture and reducing the number of information systems
• Bringing banking automation solutions up to modern standards
• Conducting business process reengineering
• Optimizing costs for the development and support of the bank’s CBS

SOLUTION

The CS and Moldindconbank teams developed a plan to modernize the bank’s IT landscape, where the main task was migration to the automated banking system B2 with the B2ng web interface.

Important elements of the project included integration of CBS B2 with external systems, in particular with the card system, integration with various state digital solutions, as well as the implementation of a complex of CS solutions, which included a corporate data warehouse and solutions for lending to individual clients.

As part of the project implementation, we used a specialized banking system for incident registration, ensuring transparency and efficiency in resolving issues that arose.

Our team used clear service standards (SLA) for incidents within this project. This ensured both timely response and maintenance of a high level of project implementation quality.

A team of CS experts participated in the launch of solutions into operation both onsite and remotely. It included analysts and developers of the highest level – CEO and system architect, which allowed for prompt response to problems that arose. From the day of migration and for the next 10 days, 24/7 monitoring of the system’s operation was conducted by the DBA&DevOPS teams.

To provide assistance in project management, the bank engaged KPMG.

The project of transforming Moldindconbank’s IT landscape from the pre-project to the launch of solutions into operation was implemented in 26 months.

RESULTS

Moldindconbank’s transition to CBS B2 was accompanied by significant changes in the configuration of its IT landscape and business processes:

• Almost all back-office operations in the card direction were transferred from the card system to CBS B2 in active mode: issuance (card back-office), logistics, salary processing, card loans, acquiring.
• Through consolidation of the branch network, the bank switched to a unified balance in CBS B2 – a unified financial institution.
• Regulatory reporting is generated in CBS B2. Currently, more than 140 automated report files have been implemented for submission to regulators, as well as to the Deposit Guarantee Fund, Bureau of Statistics, etc.
• Implementation of the CBS B2 “Financial Monitoring” subsystem was accompanied by:
  • Use of a point-based system for calculating risk level with the possibility of automatic online calculation
  • Automation of all report files in accordance with the new Resolution dated 15.08.2023 №314-317 (8820-8823)
  • Development of a flexible mechanism for setting up scenarios for selecting documents online and offline, as well as creating a consolidated form for bank analysts to work with these cases
  • Integration with an external system for checking against sanctions lists
• Use of the CFRONT integration solution for lending to individuals
• Implementation of the iB2 authorization module for online integration of CBS and processing center
• Use of the CS::BM corporate data warehouse
• Consolidation in CBS B2 of information from various sources (deposits, cards, customer debts that were not accounted for on the bank’s balance sheet, etc.)
• Replacement of a number of local integration solutions
• Implementation of elements of the ISMA management accounting system

Our company also developed interfaces for Moldindconbank’s effective work with the systems of state bodies of the Republic of Moldova:

• • Automated interbank payment system of the National Bank of Moldova – AIPS NBM for fast and secure exchange of payments
  • Mpay – a government electronic payment system that ensures secure reception and processing of payments from CNAS for National Social Insurance Fund benefits in file exchange mode with registration of crediting for each record or refusal to credit payment in case of an error (arrest, account blocking, or any other reasons)
  • State Tax Service of the Republic of Moldova (STS). The interface with the tax service of the Republic of Moldova is implemented through the nationwide SIA CCDE system. The online interface operates 24/7 using the SOAP protocol. During the trial operation, the daily number of processed documents averages over 330 incoming files and 3100 outgoing files
  • State client database (M-Connect). The online interface allows obtaining data about individual clients. Secure use of this interface facilitates and accelerates client registration in the system, as well as allows checking the relevance of documents

CS Software Products in Moldindconbank’s IT Landscape

Volodymyr Olefir, Project Manager, CS:

The project at Moldindconbank is unique in many ways. Let’s start with the fact that this is the largest bank in our company’s history – 70 branches, 88 agencies, and 262 ATMs, where CBS B2 was implemented in a one-time transition mode. It is also the first bank in the Republic of Moldova to use CBS B2 for regulatory reporting.

An additional challenge of the project was the decision to switch to a unified balance in the new CBS and card system. And also the transfer of all back-office operations for card operations to the new CBS.

The bank’s transition to CBS B2 was carried out as smoothly as possible and without significant problems: we did not notice delays during the execution of intra-bank payments or transactions on card accounts. Reconciliation of balances on card accounts shows an insignificant number of discrepancies per day with existing volumes of over 1 million card accounts. Moldindconbank makes payments of pensions and other social payments to the population on the first working day of the month, and this is hundreds of thousands of transactions. Despite significant changes in the bank’s IT architecture, mandatory social payments were made in full by the end of the first working day on the new CBS.

There are many tasks ahead: from solving current issues to implementing software products within the second stage of the transformation program.

We are grateful to Moldindconbank and its team for their unwavering belief in success, progressive approach, and active participation in the project implementation. The result of this project is an excellent visual example of the teamwork of all participants.

Of course, it is worth noting the bank’s management, which at the highest level took an active part in resolving key project issues, especially at its final stages – UAT and preliminary acceptance. The decision to start was made by the Bank’s Management Board in a balanced way, taking into account existing risks and ways to minimize them.

Mihail Iovu, Chief Operations Officer, Moldindconbank:

With great joy, we want to note the successful launch of the new CBS in cooperation with our partner and with the support of KPMG Advisory. This project is an important event in the history of our Bank. By making a one-time transition to the new CBS, we have set a standard for efficiency and innovation in the banking industry.

Despite the significant achievements of this project, we are focused on solving current tasks, eliminating any shortcomings, and implementing new software products in the next phase of the transformation program. I express my deep gratitude to CS and its team, the KPMG team, and our staff for their unwavering belief in the success of this project, innovative approach, and active participation in its implementation.

We look forward to continuing cooperation in implementing the next phase of the project.