Jim Banks speaks to Lic. Fabián Cesarini, CIO Santander Private Banking UK, about the bank’s ability to get IT systems to talk to one another.

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2. Foreword
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Alessandro Profumo, president of the European
Banking Federation and CEO of UniCredit Group.
International relations
C
Future Banking
Issue 1 2010
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ompetition remains key for banks.
They can only operate well in a
healthy competitive environment,
but, for the time being, banks are concerned
that the search for financial stability has
prevailed over competition rules.
As a consequence of the financial crisis,
regulation is being revised under the G-20
umbrella. Deposit guarantee schemes have
been reviewed and more harmonisation
will probably be the next step within the
framework of the EU. More globally,
accounting standards are being revised, and
credit rating agencies have come under
more regulatory scrutiny. While welcoming
any necessary changes, the European
Banking Federation (EBF) keeps urging
governments to coordinate their actions at
the international level and maintain a level
playing field between the banking sectors.
It is the key to fair competition.
More coherence, more convergence
and less duplication of supervisory
requirements and practices across the EU
support the same aim, which is why EBF
welcomes the European Commission’s
proposal to create European Supervisory
Authorities, which will operate in a network
with the national supervisory authorities.
The proposed reform represents a great
opportunity to at last address these issues.
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Issue 1 2010 | £5.95 €8.00 $8.95
Unlock customer value
We investigate how to enhance the
customer experience
EXCLUSIVE: Banking à la carte Société Générale on tackling
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In this issue
Page 13: Paul Ward, head of EMEA corporate
coverage, RBS, on rebuilding market confidence.
Page 16: Françoise Mercadal Delasalles, head of
corporate resources, Société Générale on global IT.
Page 81: HSBC’s Darren Armitage on investing
in innovation and new customer channels.
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Printed by Williams Press (Berks)
But for now, the key challenges for the
European banking sector are the proposals
made by the Basel Committee of Banking
Supervisors on capital and liquidity
requirements. EBF believes that the
impact of the proposed Basel reforms on
the economy, capital markets and banking
structures require careful analysis.
All reforms must be implemented
progressively and simultaneously
worldwide in order to preserve the
chances of recovery of our economies
and avoid distortions of competition
and business models.
EBF is participating in an international
macro-economic impact assessment and
we have clear signs already that, if
implemented in their current form, the
proposed measures would deeply damage
the European economy, cost it several
percentage points of growth and hamper
the development of trade.
This concern is not just that of major
banks, but also of smaller and mediumsized ones, who need to be able to find
enough capital to finance their lending
activities or they will have to limit them.
In this respect, the challenge is no small
one for regulators and policy makers, to
strike the right balance between prevention
and the cost to the still fragile real economy.
Subscribe online to receive the next
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3

3. Contents
Cover story
32
Avaya looks at integrated contact
centres and technology.
16
www.banking-gateway.com
Outward bound
34
Go ahead, help yourself
NCR on how self-service solutions
must fit in with consumers’ lifestyles.
35
Issue 1 2010 | £5.95 €8.00 $8.95
Swim the channels
BT on how interacting with customers
differently can create opportunities.
Unlock customer value
We investigate how to enhance the
customer experience
EXCLUSIVE: Banking à la carte Société Générale on tackling
the IT infrastructure challenge
in a global banking organisation
36
Invest in innovation
HSBC explains why innovation must
become a discipline.
PLUS: OUTSOURCING TRANSPROMO RISK & COMPLIANCE
CORRESPONDENT BANKING GREEN IT MOBILE SOLUTIONS
38
Backbase on why web technology
helps keep pace with change.
Société Générale on serving
up a global banking solution.
xxxxxx
40
The intelligence
6
22
24
Competition on a level
playing field
The European Banking
Federation’s Elie Beyrouthi
on how European banks must
ensure Europe’s competitiveness
at a global level.
Letting financial
services take flight
Tata Consultancy Services explains
the value of outsourcing IT.
Market intelligence
9
Chile’s growing success
26
Back up to speed
EasyLink on replacing complex
networks with managed file transfers.
Cover story
Banking à la carte
Outsourcing
20
Share the load
Capgemini Financial Services
on why experts can give
banks agility.
4
44
28
47
Customer experience
management
30
Cast the net for new ideas
Gartner explains how winning new
customers requires innovation.
Future Banking | www.banking-gateway.com
Making the message
loud and clear
EMC Document Sciences looks at
the right customer communications
management platform.
Language lesson
Jim Banks speaks to Fabián
Cesarini, Santander Private
Banking UK, about the bank’s
ability to get IT systems to talk to
one another.
Redefine document
management
The German retail arm of Citibank,
rebranded TARGOBANK, explains
why it chose T-Systems to modernise
its document process.
System integration
Jim Banks sits down with
Société Générale’s Françoise
Mercadal-Delasalles and
Bertrand Lemarignier to talk
IT strategy.
A winning formula
Pat McGrew at Kodak looks at
supporting banking services with
strong information resources.
An easier way to link
with partners
Paul Ward at RBS looks at rebuilding
confidence after the downturn.
16
42
Managed file transfer
27
13
Transpromo
An evolution in banking
Avaloq Evolution on how software
can improve banking processes.
The measure of success
CFI Group explains how the scientific
measurement of customer satisfaction
can improve financial results.
InvestChile discusses appealing
to investors.
News
A round-up of the latest news
and statistics.
Internet banking 2.0
48
Transpromo:
it’s all about quality
Xeikon on how the potential of
transpromo can be realised.
Data warehousing
50
Manage the data enterprise
Alior Bank explains how Teradata’s
data solutions are helping to enhance
the organisation’s business culture.

4. Contents
13
Correspondent &
relationship banking
52
The perfect partner
Scotiabank on what to look for when
choosing a banking partner.
54
After the recession:
survival solutions
Deutsche Bank’s Dieter Stynen tells
Elly Earls how innovation will shape
the future of commercial banking.
56
Meet the emerging markets
Reinhard Furthmayr of
Commerzbank explains the
importance of market knowledge.
57
RBS’s Paul Ward on boosting confidence.
58
60
Print not, want not
73
Think before you print
74
76
64
Luxumbourg at the centre of
ICT technologies
Future Banking reports from the
ICT Spring conference.
66
Data centres of excellence
The eBRC and Migration Solutions
explore data centres of the future.
88
The investor takes
centre stage
The long road ahead
Mobile solutions
90
Moody’s explains how money market
funds, hedge funds and the industry
as a whole are reacting in 2010.
The big conversation
81
95
Mobile collaboration
The EPC and The Mobey Forum
are defining the rules and
regulations for SEPA’s new
mobile channel.
Prized assets
Now that banks offer assetbased lending as part of their
portfolios, the product can shake
its lowly reputation.
Q&A
Sean Gilchrist, digital
banking director for Barclays
UK Retail Banking.
RiskMetrics Group on building a
culture around risk principles.
Asset-based lending
Who goes there?
ValidSoft on new transaction
verification techniques.
92
80
A hands-on approach
to security
Fujitsu explains why biometrics
are continuing to gain credence.
CAPITECTS on how a new form of
portfolio optimisation is emerging.
79
Human factor
Phil Genge of Nationwide tells
Ian Duncan why employees
and customers, not servers and
laptops, are the new priority.
Filling in the gaps
Power to deliver
NDSL on how bank technology is
reliant on battery systems.
65
85
SecondFloor discusses bringing
existing IT systems up to speed.
Green technology,
the HP way
HP’s Arie Ossewaarde tells
Elly Earls how energy saving
solutions can transform a financial
institution’s costs, giving it a
crucial competitive advantage.
A clear view of risk
Security
Microgen highlights the need for a
higher degree of data transparency.
Toshiba TEC on how printing is
chronically neglected in efforts to
boost business efficiency.
62
Total accuracy
Reinhard Wienke explains the
advantages of ASP solutions.
Quocirca’s Louella Fernandes looks
at how office print infrastructure can
reduce waste paper consumption.
Make informed decisions
Bonaire Software Solutions LLC on
making information available for
Barings Asset Management.
Risk & compliance
Green IT
Assets in balance
Revenue management
automation
84
72
9
Fidis explains how powerful
software helps banks with
asset-based lending.
Ancient and modern
Massimo Castagnini of Monte
dei Paschi di Siena tells Ian
Duncan how his company
took an unorthodox approach
to expansion.
A collaborative vision
The Depository Trust & Clearing
Corporation on the role repositories
have to play in the collaboration
between participants and regulators.
83
Special report: M&A
68
EBF on fair
play for banks.
98
Suppliers guide
Future Banking | www.banking-gateway.com
5

5. Insight > Systems integration
Language lesson
Jim Banks speaks to Fabián Cesarini, CIO of IT Santander Private
Banking UK, about the bank’s ability to get IT systems to talk to one another.
T
he increasing pressure on the
banking sector in the last two
years has, if anything,
intensified the need to invest in
systems innovation and improve
service delivery. It has also fuelled
consolidation among banks, which
brings its own challenges in terms of
systems integration. Some financial
institutions have been able to respond
to these challenges with great agility
and become clear leaders in growth,
stability and innovation.
Among those banks able to respond
to the current environment in an agile
and nimble fashion is Santander
Group, where the organisation of
business divisions and a clear
strategy for systems development and
integration has helped it to grow
successfully through acquisition.
28
“Santander is one of the few
financial services groups, and I have
worked for many, that gives a lot of
importance to IT and technology
development. We invest massively
every year, which is one of the reasons
why we are in much better shape than
other banks after the financial crisis,”
says Fabian Cesarini, head of IT for
Santander Private Banking UK.
“It urgently requires a common
platform as a foundation to grow many
IT projects. For the development and
consolidation of previous existing
businesses in our private banking unit
we needed a more flexible IT platform.
We integrated the IT systems in one of
our businesses, establishing a new
methodology for the administration of
customers’ portfolios that allowed me
Santander is one of the few financial
services groups that gives a lot of importance
to IT technology and development.
Santander’s growth has forced it
to manage many complex IT
programmes at once, but its the merit
of its strategy has been proven in
action, enabling it to remain a leader
in systems innovation. In the UK, its
ongoing integration of the Santander
UK businesses is a prime example.
and a small team to produce massive
change in a very short time, and we are
now implementing that in the rest of the
companies,” says Cesarini.
“All of these businesses were
different in scope and focus, with
different products and services. We
had inherited companies that looked

6. Insight > Systems integration
in different directions so we are
integrating their platforms, products
and services through different
channels,” he adds.
An essential ingredient in tackling
such challenges effectively is the
organisation of IT support services.
The Santander Group has a global
structure that includes revenuegenerating business units on one side
and support units, including the
technology and operations, division,
integration project, in which it will
install core banking systems
developed in Spain. These include
Partenon, which enables the rapid
and cost-effective integration of
acquired businesses by replacing
silo-based IT systems across multiple
channels. This will greater coherence
to the IT infrastructure and help the
bank reduce its time to market for
new products, as it has done for
Santander’s retail banking operations.
Santander Private Banking is less wellknown than its rivals in the UK. We need
technology support to develop its reputation.
which brings together the support
companies including Isban, for which
Cesarini works.
Isban develops software and
provides system integration services,
which are shared by the different
business lines within the group. It
acts as a partner to the banking
businesses, delivering the systems
that support customer services and
reduce operating cost. Another key
element is the IT infrastructure
management company Produban,
which handles IT operations and
global telecommunications
connectivity for the entire group.
There are further companies for IT
procurement, outsourcing and
offshoring. There is also a centralised
laboratory for software development,
which creates products and tools
that can be used in every country in
which the bank operates.
“The support companies are
centralised to offer integrated services
across all of the bank’s businesses in all
regions, whether it is private, wholesale,
or retail banking. For all business lines
we are looking at the standardisation of
services and the setting up of a
platform that allows companies to grow
and deliver measurable benefits like
cost savings,” says Cesarini.
Balancing tactics and strategy
Santander Private Banking UK has
embarked on a three-year IT
In Cesarini’s area of private
banking, Santander will also bring in
its asset management system.
“One of the most important
projects in private banking is to
implement our investment platform,
which enables a wide range of
products and portfolio development.
Very few competitors can provide
a similar set of services. But
bringing over our core banking
systems from Spain involves many
big projects,” he remarks.
The delivery of services, however,
cannot suffer while these large
projects are implemented. To manage
the bank’s short-term
performance requirements with
its long-term goals of systems
integration, the bank looks to
temporary solutions.
“We need tactical
solutions that will work for
six months or a year while we
do the big projects with our
core banking systems and their
satellite applications. We will find
those solutions from the
market or create
bespoke
applications. We need to maintain a
balance between corporate projects
and our UK activities. IT strategy
cannot run alone, it must follow the
business strategy in the UK, so we
need transformational projects that
will allow more product development,
better pricing and more flexibility. At
first, we need tactical projects for
local needs,” notes Cesarini.
In Cesarini’s area of private
banking, and other retail banking
activities, personalisation and highquality services are fundamental to
success. Investing in IT is core to
reaching these goals, hence
Santander’s investment in cutting
edge projects.
For instance, private banking
services for our clients are seeing
investment in new communication
and conferencing capability. Through
the normal bank website these
clients will be able to talk directly
to their private bankers or
relationship manager using audio or
videoconferencing technology, as
well as accessing efficient
transactional services. Phone,
online and video services are being
brought together on the data system,
proving that every area of Santander
Group’s activities is a focus for
technology investment.
As Cesarini says:
“Santander Private
Banking is less wellknown that its
competitors in the
UK, though it is
very well-known in
other countries in
Europe and the
Americas. Technology
will help to develop its
reputation.”
Fabián Cesarini
Fabián Cesarini has more than 17 years of international diversified expertise in leading
technology operations and reengineering initiatives across large/middle-scale, complex
organisations. He began working for the Santander Group in July 2006, at the new
Santander Asset Management UK division, before moving to Santander Private Banking
UK in February 2009 as CIO. During his first year he took control of the IT teams at
Santander Private Banking UK divisions.
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29