What waits for Transcreditbank IT system after merge to VTB 24? Interview with Denis Sotin

TAdviser: Denis Vladimirovich, how the IT budget of Transcreditbank for the last few years changed?

Denis Sotin: I head technology directorate since July, 2011, and in the first year we reduced IT budget volume a little, having optimized processes in this directorate. For the second year we held the budget in a reduced framework, at the same time solving bigger number of problems. Also the bank reviewed models of vendor interaction, having accurately separated agreements with them into development of systems, into a support and maintenance. At the expense of it economy on maintenance of systems was reached.

TAdviser: What is represented now by Transcreditbank IT infrastructure - a hardware component and software?

Denis Sotin: The hardware is distributed between two own platforms of bank in Moscow connected among themselves by two independent optical communication links. In bank the server hardware of the company HP (Blade System, ProLiant Servers), Oracle/ by SUN Microsystems, Fujitsu-Siemens and disk arrays is mainly used EMC and Hitachi. Network infrastructure is based on the equipment of the company Cisco Systems.

We actively use solutions of product-based virtualization of companies Microsoft (Hyper-V) and VMware. Now the number of virtual servers exceeds 400 pieces. For providing otkazo-and disaster tolerance of work of the IT systems of Transcreditbank placed on virtual servers the solutions of VMotion and VMWare of SRM allowing to support the high level of availability of information systems are used. Also we actively use solutions of a clustering of servers and infrastructure services.

Regarding banking software – we use CORE BANKING SYSTEM Diasoft 5NT in which over 5.1 thousand people and also the solution Invoriteyl and the credit front – the Loan Hub platform of SMA company work, in which about 3.5 thousand people and 2.7 thousand people respectively work.

As the ERP system the centralized system Master balance of Diasoft company is used. The main objectives solved in it is personnel (uniform personnel records, calculation wage plans, maintaining the staff list) and also business activities (accounting of economic agreements). As EDMS the program Case is used.

TAdviser: What key IT-proyekty bank did implement in 2012?

Denis Sotin: From a decision instant at the end of 2010 about Transcreditbank acquisition by VTB Group all our main projects were connected with preparation for integration with group. In November, 2013 legal accession of Transcreditbank to VTB 24 therefore last year passed for bank to a large extent under the sign of optimization of internal IT processes will take place.

In particular, functional management of IT on branches as a result of which the role of head bank was strengthened was implemented and the tough chain of command in a branch network is implemented. Also reorganization of technology directorate in head bank as a result of which it was separated into two blocks came to the end: the first – on development and implementation, the second – responsible for maintenance and operation.

The division which is engaged in administrative functions - agreements, a warehouse, etc. and also the division on data processing and reporting which is engaged in development and maintenance of the corporate data warehouse was separately selected. Concerning the last, it was made that a reporting question in such large bank as ours, especially with retail development, became very much particularly important and also because initially bank multifilial, and in connection with the accession to VTB Group consolidation of the reporting at the level of group is necessary, and afterwards – already at the level of the united bank with VTB 24.

From the largest infrastructure projects which were kept in 2012 it is possible to select work on creation of the centralized dispatching service on technology questions on all branches - the first support line. It is also possible to select work on projects in information security field: were implemented the system Max Patrol, ArcSight and others.

Also we held a complex of events for reliability augmentation and availability of the systems of bank: upgrade of DPC, introduction of the SLA level, implementation of mechanisms of monitoring and incident management, etc.

Besides, the bank actively was engaged in centralization of IT infrastructure within what physical centralization of the main core banking system – Diasoft 5NT – on server platforms in Moscow was carried out. Earlier servers under a system were in each separate branch and at the same time were rather diverse. Now their administration and control is made only in Moscow.

Besides, last year Transcreditbank centralized accounting of all transactions with individuals within a uniform core based on already existing core banking system "Invoriteyl". Now all credits of individuals are conducted only in it while their earlier considerable part was conducted also in the decentralized core banking system Diasoft 5NT.

In addition, in December, 2012 we finished the project on centralization of the RBS connected with service of legal entities: till 2011 each branch had rather big degree of freedom in the choice of the version BSS bank client, and now all use the uniform centralized version.

Since 2012 we also actively prepared for deployment of remote jobs selling products VTB 24 through network of sales points of Transcreditbank and the organization of support of the frontal line (the pilot is started at the beginning of a year, start of sales on all network of bank is performed for today). And by April, 2013 the procedure of cross clearing of the credits and salary accounts for credit products VTB 24 was implemented.

TAdviser: How will integration of Transcreditbank and VTB 24 at the level of IT infrastructure be performed? What systems will continue to function what will disappear?

Denis Sotin: In 2011 the concept on consolidation of IT infrastructures of two banks in the course of consolidation where some milestones to which life of these or those systems is tied are registered was developed. In particular, this beginning of sales of products VTB 24 in Transcreditbank points, further – accession, transformation of a branch network and an extreme milestone – completion of transformation of network and IT migration from some systems in others.

As priority the IT architecture planned at the moment in VTB 24 therefore the majority of target IT systems or are already implemented is considered and are used in VTB 24, or their implementation is planned. In the course of accession the majority of the systems of Transcreditbank should be brought out of an IT landscape, however in one step it will not occur as, first, the IT landscape of VTB 24 is not brought to target yet, and secondly while there is a large number of products of Transcreditbank which from the date of official accession before IT migration will be serviced in our old systems. A part of systems, it is rather – infrastructure, VTB 24 and, perhaps will be demanded, are inherited from Transcreditbank.

The main movements on replacement of systems will begin at a stage of transformation of our branch network in regional additional offices VTB 24 in the course of which our branches should be brought to format VTB 24. This process is going to begin at the end of 1 quarter 2014. During it branches will be combined infrastructure with systems VTB 24 both at the level of communication channels, and at the level of direct systems. In a standard sales point according to the results of transformation systems VTB 24 will be used generally, and Transcreditbank - to have minor character. In particular, as the main core banking system core banking system VTB 24 –Biscuit will be used.

With completion of sales of products of Transcreditbank since the beginning of 2014 sales through our credit front will stop, respectively, for new sales use of that solution which is used for this purpose now will stop. On the other hand, this solution will continue to live until there is a service of old products, work with arrears, etc.

In the same way on systems of accounting of transactions with individuals: most likely, there will be a certain modification of use of VTB 24 of these systems in process of transformation, for example, their centralization based on several or one branches, but the decision on it should be made later.

The centralized system of BSS which is used for service of legal entities, on the contrary, will remain and will be used. Same concerns our practices on the corporate data warehouse: on their base further development of technologies of creation of the reporting of the united bank is planned.

As for DPCs, in addition to two own DPCs we have one more additional platform rented already within VTB Group. Within the united bank our own DPCs, I think, some more years will continue to be used for operation of those systems which were available in Transcreditbank, the decision on their further use within group will be made afterwards.

TAdviser: In what, in your opinion, do the main difficulties of integration of IT systems in a similar situation consist?

Denis Sotin: Historically banks developed absolutely differently that left a mark and on their IT architecture and IT processes. Transcreditbank and VTB 24 has quite different IT landscapes. However for the last year we managed to promote well regarding team interaction on IT on both sides therefore I would tell, the main complexity of integration, probably, lies not in the IT plane. Many decisions which are made, as a result of examinations both IT specialists, and operational and business divisions often turn out finally other than how they saw each other at the beginning of process. And the main complexity – it is very accurate to define priorities and the list of technology tasks which should be solved to this or that stage. There has to be accurate priority control both at the level of IT, and at the level of project teams of banks.

TAdviser: How many your clients use Internet banking now? What will happen to the present platform of Internet banking at accession to VTB 24?

Denis Sotin: As of July, 2013 Internet banking uses about 12% of our clients individuals – about 340 thousand people in numerical expression. It works based on the solution CMA, within the united bank the solution which is used VTB 24 – Telebank of Step Up company will be used. Our Internet bank will live 2-3 more years until products of Transcreditbank are alive and accounts in our bank are opened.

TAdviser: What will happen to IT department of Transcreditbank in the course of consolidation with VTB 24?

Denis Sotin: Already now future structure of the united bank regarding IT is defined. The technology block of Transcreditbank is demanded almost in full strength, reductions will be, but very insignificant. It is possible to speak about single reductions which will affect people, not key experts who are engaged in the functions which are crossed with functions VTB 24. We think to resolve an issue of their further employment, it is possible – within group.

It is clear, that in the united bank there can be only one IT structure. Today it is department of information banking technologies VTB 24 which is headed by the board member, the director of the department of banking and information technologies of VTB 24 Sergey Rusanov, too the native of Transcreditbank. He will direct the joint structure. The most part of Technology directorate will be presented in DBIT VTB24 in the block form from several managements, and a part of divisions of Directorate will be initially incorporated in the current managements of DBIT VTB24.

TAdviser: What will be the number of staff of the IT block of the united bank?

Denis Sotin: It will exceed one thousand people only across Moscow. Now in Moscow IT state number at Transcreditbank is about 300 people and about 260-270 people – on a branch network.

TAdviser: What services of IT outsourcing do you use?

Denis Sotin: Software development services: the main part of development in Transcreditbank is conducted on the party of vendor. Own development at us does not exceed, probably, 30% of all completions and concern, mainly, the corporate data warehouse and to a lesser extent – the applied systems. The decision not to create own development, and to be guided by vendor interaction was historically made.

At the end of 2012 we also passed to outsourcing of printing, having transferred control of it across Moscow Xerox companies. Within the united bank where outsourcing of printing in Xerox is also used, use of this service and in regions will develop.