Interview with the director of information technology of Rosbank Denis Sotin

TAdviser: Denis Vladimirovich, tell, please, about the IT strategy of Rosbank. What its key directions?

Denis Sotin: In June of last year in Rosbank the business development strategy till 2017 which is a part of global strategy of the Societe Generale group was adopted. Implementation of the tasks set in new strategy demanded improvement of business processes in bank that, including, affected also activity of the IT block. Requirements of business divisions changed, the decision on development and the adoption of new IT strategy for 2015-2017 was made. At the same time we were guided by own long-term vision of a target IT landscape corresponding to the best practices including other banks of Group.

By this moment new IT strategy is at a high stage of readiness. We expect to approve and approve it in the middle of the year. Further this document will become workers will be reviewed every year, taking into account external and internal conditions, corrections of business strategy of bank, etc.

New IT strategy provides a significant change in an IT landscape of bank in the medium and long term (3 and 10 years respectively). Already now we can designate its key directions previously: providing high level of availability of services of bank, increase in efficiency and quality of project implementation of bank and also cost reduction. At this stage we are guided first of all by optimization of internal IT processes, increase in efficiency of the available personnel, optimization of the available IT landscape, including infrastructure.

TAdviser: How IT infrastructure of bank is arranged? What main systems in it are used for automation of the primary and operating activities?

Denis Sotin: It should be noted that in bank rather difficult IT infrastructure, in the last years two bank actively is engaged in process of its optimization. Practically all main business applications are centralized and are on maintenance in Moscow and the regional centers managed from Moscow. Work on unification of an IT landscape of bank branches approaches end, a significant amount of local applications is taken out of service, their functionality is substituted with the centralized applications or recognized inexpedient.

Nevertheless, the number of applications remains considerable, in total their about 200. But, naturally, that it is less main systems. At the same time the main core banking systems (ABS/BIS, functionality of the ledger, the product engine, a back office and so forth) substantially are already internal development. The destiny of the main banking systems will be decided during further refining of strategy.

In the rest the IT landscape consists mainly of own developments or developments of third parties for needs of bank today. In particular, fronts of own development, a number of CRM solutions,ERP solutions are used retail and corporate credit, the corporate storage is developed by own forces based on solutions of IBM, the integration bus based on solutions of IBM, etc. is implemented.

TAdviser: Tell, please, about the largest projects implemented in bank in 2014?

Denis Sotin: In 2014 the main attention was concentrated on ensuring different requirements of business divisions of bank and also optimization and stability augmentation of work of key banking systems. In particular, for retail business the project on expansion of a range of products for clients individuals was implemented. Different types of deposits, credit products, including refinancing of consumer crediting and car loans are successfully technically implemented, the functionality of remote banking is expanded.

Besides, payment services through remote links of access actively developed (in particular, the option "templates" for preserving of details of often performed transactions in Internet bank is implemented). The list of receivers of payments via ATMs, Internet and mobile bank is considerably expanded. The number of the companies to which users of Internet bank can list payments increased more than twice and was over 1,200 companies. Naturally, all these tasks demanded serious completions of IT systems which were successfully implemented within the specified projects.

In corporate business new services for clients within development of the clearing platform of Rosbank for ensuring global banking activities of corporate clients of bank and also corporate clients of Group were created. Considerable attention was paid to implementation of regulatory requirements, in particular, requirements 383-P (rules of implementation of money transfer), 365-P (interaction with tax authorities), other regulations.

Special attention in 2014 was paid to process optimization of customer service, optimization of operational processes that found the reflection and in change of functionality of information systems as process optimization first of all is effective at increase in level of automation of transactions and to simplification of interfaces.

One of the main projects of last year was also the project of stabilization and optimization of work of main systems of bank directed to increase in level of their availability, reliability of work, optimization of internal algorithms, etc. Within the project replacement of hardware-software complexes was made, a transfer of the database on the new version of Oracle is made, interfaces of exchange are updated, disaster recovery the solution for the key systems of bank is worked out, internal algorithms are optimized, system dokumentirovannost level is considerably increased.

According to the results of the project the high level of system availability, considerable reduction of number of incidents of different level, reduction of risk of idle times of systems was provided, the closing time of trading day is considerably reduced; the recovery time of critical data is reduced (in case of need).

TAdviser: What plans of bank for the IT direction the current year?

Denis Sotin: Our plans can be separated into several directions. First, implementation of projects, strategically important for bank, to which a number of projects of retail business, reengineering of the corporate data warehouse, implementation of the new back office application for the CMIB block (capital markets and investment banking) and some other projects which influence not only implementation of a certain business functionality belongs, in particular, but also are directed to significant transformation of an IT landscape of Rosbank, bringing closer it to target model.

At the moment all these projects are worked in details out, and the statement of volume and terms of their implementation in 2015 and the next years is expected (key projects are planned for 2-3 years ahead). All designated projects provide implementation of key initiatives of the different business blocks reflected in the strategy of Rosbank.

Secondly, accomplishment of the current tasks of further process optimization and products of bank, ensuring its reorganization, increase in efficiency in all activities. These tasks partially are implemented within the projects planned for 2015, partially – will be implemented in the form of the current change requests. This activity is extremely important for increase in business performance in general: for ensuring efficiency of internal processes and increase in level of customer service of bank.

Thirdly, continuation of the IT reorganization begun at the end of 2014 and optimization of activity of the IT block, building of effective management processes, increase in efficiency of IT departments, more high-quality providing the developed solutions and higher level of support of key applications and business services, increase in expense efficiency regarding IT, optimization of the used infrastructure.

TAdviser: Whether is going Rosbank to undertake something because some foreign software suppliers limit deliveries of products to Russia? Replace some foreign products with the Russian?

Denis Sotin: Now we have no such plans. It should be noted that the bank uses many developments of domestic solution providers also now. However, of course, at the moment we do not see an alternative, for example, to the used operating systems,databases, tools of development and other solutions of similar level of foreign producers.

Besides, we hope that these limits will be lifted sooner or later. Now they do not affect Rosbank, however, at further development of strategy we take this factor into account and whenever possible we will continue to implement solutions of the Russian suppliers, at compliance of like those solutions to level of tasks of bank.

TAdviser: How the IT department of Rosbank is arranged? How many people in it work?

Denis Sotin: At the moment in bank there are two directorates. The directorate of information technologies which is responsible first of all for development of the systems of bank and ensuring support of applications and services and Directorate of technical infrastructure which is responsible for appropriate questions (DPCs, networks, a telecom and so forth). Besides, this directorate is also responsible for ensuring infrastructure requirements of all companies of Group for Russia.

Departments are a part of directorates. In particular, in Directorate of information technologies the departments which are responsible for development of information systems, maintenance of information systems, management of IT (office CIO) are selected. Besides, for project implementation of complete reengineering of the corporate data warehouse the department which is responsible for issues of development and support of KHD is created. This activity has project character. However, considering specifics of creation of KHD and also the long nature of the project (more than three years), the decision to select this direction in separate structural unit under the leadership of the head of Directorate of IT was made. Similar divisions (except division on storage) are selected as well in Directorate of technical infrastructure.

It should be noted that now we carry out work on optimization of work of two directorates, building of end-to-end processes, an exception of duplicative functions and so on.

TAdviser: Whether uses Rosbank of service of IT outsourcing? If yes, that what processes are transferred to outsourcing and how you estimate its efficiency?

Denis Sotin: Certainly, as well as most large banks, we use services of outsourcing and in some cases – an autstaffa. Use of third parties is justified as in a row a case to close all requirements internal resources rather difficult or inefficiently, sometimes use of external resources allows to achieve bigger flexibility regarding providing delivery dates of these or those solutions for business.

In particular, for key banking systems we use mainly own development centers, however we resort to services of third parties for transfer of a number of works on these or those tasks to them not to create "a narrow neck" owing to possible employment of internal resources. On the other hand, a number of applications at us is almost completely on development in third parties, from bank problem definition, development control, acceptance of results is made.

Besides, on outsourcing there is a part of works on ensuring testing. Also a part of hardware complexes and the corresponding middleware is transferred to third parties to complete maintenance. At the moment all outsourcing services are exposed to the additional assessment in terms of efficiency within the expense efficiency which is carried out in the IT block of bank of the program of increase. According to the results of the decision on possible expansion of a number of austorsingovy services or, opposite to their internalization at the expense of the available or attracted additional personnel will be made.