Temenos Community Forum | Barcelona | May 2016

Gopi Krishnan (Krish)Chief Information Officer, QIB Group

Transformation Success Story

In This Talk …

• About QIB

• Need for Transformation

• Transformation (iCAN) – At a glance

• What went well ?

• Lessons Learnt

International Holdings

Real Estate

Investment Banking

Financing Insurance

Domestic Holdings

Qatar Islamic Bank | About Us

• Best Islamic Retail Bank in the World by Global Finance 2015

• Islamic Bank of the Year 2015 in the Middle East by The Banker magazine

• One of the top 5 Shari'a compliant banks in the world.

• Second largest Qatari bank by assets

• First and largest Islamic bank in Qatar and listed in Qatar Stock Exchange

QIB Group’s Geographic Diversification

In This Talk …

• About QIB

• Need for Transformation

• Transformation (iCAN) – At a glance

• What went well ?

• Lessons Learnt

Need for Transformation

• To provide the best in class service to our customers

• To be the most preferred Bank in Qatar

• To be the leading Islamic Bank inspired by Innovation and Technology.

• To set new benchmarks in Islamic Banking with unmatched customer experience and operational excellence

Vision

• Alignment with QIB Business strategy

• Fostering continuous business growth and enhancing profit

• Providing Flexible, Scalable and Agile business services and products

• Automated Banking Services

• Ensure system's stability & high availability

• Reducing time to market of innovative products

Business Drivers

• 5 Year Technology Transformation

Technology Refresh

Core Banking

Transformation

MIS / Analytics

− Digital Transformation

− Group IT

Roadmap

In This Talk …

• About QIB

• Need for Transformation

• Transformation (iCAN) – At a glance

• How did we manage it well ?

• Lessons Learnt

“Changing a core banking system is like replacing the engineof a Boeing aircraft mid-flight”

- Kevin Lomax, Core Banking Partner Guide 2008

Source : McKinsey & Company in conjunction with the University of Oxford (2012)

of transformation programs fail to deliver their actual targets60%

Large IT efforts often cost muchmore than planned; some can putthe whole organization in jeopardy.

Despite the challenges, largeorganizations can engineer ITTransformation Projects to defy theodds.

Technology Transformation | Statistics

iCAN At A Glance | The Challenges

Loss of competitive edge due to

system’s rigidness

No proper / accurate MIS

reporting

Legacy / Unsupported Core Systems

Poor Data Quality

Disparate Data Stores

Point-to-Point Integration

Very complicated architecture, difficult to maintain and support

Managing Change

Tired of maintaining a “spaghetti architecture”

iCAN At A Glance | Program Scope

Replacing of core banking application“Phoenix” and Branch application“Mosaic” with T24 core banking fromTemenos (T24 Modules & Frameworks)

• Consolidation and Replacement of aging middleware with IBM Web Sphere “Enterprise Service Bus”

• Standardized Integration Patterns/Methods

Revamp Infrastructure Landscape• Virtualization• Hardware Replacement/Refresh• Networks upgrade (Dynamic Allocation)• Communication and Security upgrade.

• Introduction of Operational Data Store• Automated Regulatory Reports• Data Universes• Bank wide consolidation of reporting

structures• Business self-generation of Operational

Reports

Defining the QIB Target Operating Model“TOM” to enable the business strategy

Introduction of new Capabilities/Systems • Signature Verification System • Debt Collections System• Remote Cheque Deposit

Upgrade Existing Capabilities/Systems• Cards Management System• Enterprise Content Management• AG Quantum • Instant Card Issuance

Standard Operating Procedures(SOPs) Documentation

Application Landscape Rationalisation• Consolidations• Decommissioning• Interfacing Methods

Introduction of• Testing Automation Tools• Change Management Tools• Data Quality Enhancement Tools

iCAN At A Glance | System Architecture

Security

File Based Integration

PRIME(BRSOut)

Aljazeera Cheques Aljazeera Invoices

Exclude 10 QRS Web (VIP)

Exclude 3 QRS Web

TRADEWAN

Cards System

AMTS Local Share SVS (SigCap)

Shareholders

IVR/CCE

Cheque Post

ALM/FTPBase24/CDM

Corona

Credit Bureau

ECC

HRMS

RIB

CIBMobile BankingIPOIT Risk System

MT110 Msg Generator

SWIFT Statement Msg Generator

ECM(FileNet)

Qatch Msg Generator

SWIFT Msg Generator

QCB Online

Right Issue

SMS Banking

TradeWindTransaction Post

AG Quantum

AGQuantum

Customer Information

Update

Cheque Book Printing.

Prime

Car Search System

Cheque Printing

Maturity Tickler

Payments Register

TERMS

CAS

Corporate AnalysticAdventCollection

iCan Phase I – To Be High Level Systems ArchitectureBloomberg

Data Scope (Dealing 3000)

Exchange Rates

Services Attendance

QTEL Draw

Retail Dashboard

Retail IB Draw

Retail VISA Draw

Salary Draw

Business Objects

BancWare Capital Manager

(Basel II)

BrsIn

PBF Refresh

Prime InterfaceFraud Guard

Provisioning

Zakat System

Service Desk ManagerCustomer

Position(MARKAZ)

IBANExchange Rate

IVR Online Statement

MT103 Msg Generator

Base24/CDM

E-Statement

Masraf Statement

Advices

Statements

EZMcom

ATMCHEQUE Payments & SWIFT Module Profit &Charges

Reuters

Qatar Airways QMiles

File Upload

Bulk File Upload

Provisioning

Customer

Tickler

Trade Finance

3DSecure

Quick Remit

SWIFT Qatch

ProfitabilityEnterprise Service Bus

JB L

oade

r

Secure File Transfer Protocol (SFTP)

T24

Dire

ct In

terf

ace

Dat

a In

tegr

ator

(ETL

)O

DS (T

ycon

z)Dat

a In

tegr

ator

(ETL

)

T24

MonthEnd

COB

MOF

Accounts

BillsBranch Reselience

Direct Debits

Delivery

Document Management

Data Warehousing

FATCA

Forex LimitsMoney MarketPost Closing

Payment Due

Process Workflow

ReportingIslamic Modules

Teller

ARC IB

Business Events

TCIB

Multi App Server

Arrangement Architecture

Business Monitoring

Image Capture

TAX Engine

Non Stop Processing Webservice

SVS (SigCap)URL

Ooredoo

Online

Third Party Systems

KahramaCredit Bureau

WPS

Deals

Rates

ETL

Legend

ODS Consumer (Direct)

File Integration

Decomissioned

Multiple integration Methods

ODS Consumer (ETL)

T24 Direct Interface

ESB

Standalone

T24 Modules

Other ETL Source Systems

ODS Provider (ETL)

QCB MappingKahrama Utility File UploadBadar Customer

Segmentation Payroll ApplicationSVS Scanning Module

Qatar Exchange QCB_EDATE

Decommissioned

QCB Connect QCB Financial Stability Reporting

Sword - Op Risk Mail SystemContracts System Store SystemE-MarketingVodafone CD

UploadElectronic

Journal (EYE EJ)QMATIC

Standalone

T-Insight

SharePoint

URL

AML

AML

ETL

Reports Excel Convertor

Reports PDF Convertor

MIS Reports

QCB BS

QCB CRData

Universe

DB

Conn

ectio

nFi

le U

ploa

d

AGQuantum

Prime

LocalShare

QCB BS

MOI, MBT

Adjustments

Data Universe

Unutilised

iCAN At A Glance | and…

iCAN At A Glance | Key Partners

… and many more other vendors

Core Banking

Program GovernanceLocal Customization , Middleware Integration and Training

Testing and QA

Infrastructure Components Operational Data source Reporting

Business Requirements

Team

No. of team members in iCan program including 50 full time / part time Business resources, over 20 nationalities

226

Servers & PCs

500+HW / Network components upgraded / replaced or newly commissioned

Testing

28,650Test scripts executed3,893 Defects identifiedand fixed

Training

900+Number of trained employees over 6 Months (Induction, Job Role, Super User & OTJ)

Data Migration

5,995,365Total Number of RecordsMigrated to the new CoreBanking

Time Line

2 YearsFrom the official start of theprogram in Feb 2014.

Go-LIVE Tasks

1,200Number of tasks executedduring the cutover.90+ business & IT check lists

Vendors / Partners

26Technology Partners& Vendorinvolved in delivering theprogram

Systems

48Systems that have been integrated, upgraded & newly introduced. 6 new systems including customer facing & back office

Process

E2E process created

58 standard operating procedures

615

Dress Rehearsals

400+Users participated in 3 Dress Rehearsals 1 Transaction Day

Rules of the Game

Simple Rules on which iCAN Team operated

5

iCAN At A Glance | Program Statistics

iCAN At A Glance | We have Pioneered

First Islamic Bank in Middle East to implement TellerFinancial Services (TFS)

Simulated Islamic Financing Schedule for Data Migration forthe first time in Temenos history

First Islamic Bank in Qatar to introduce Remote ChequeDeposit services

Introduction of enhanced Profit Distribution System (PDS) inT24

First Islamic Bank in Qatar to introduce T24 Islamic FinanceOrigination System (FOS)

Early adaptors of Temenos Architecture Framework - JAVA(TAFJ) through T24 - R14

First ever implementation of Islamic Financial Products(Mosawama and Murabaha with S-type)

iCAN At A Glance | Benefits

• Simpler Account Opening process

• 360 Customer View• Cross Selling• Premium Customer Service• Efficient tracking of requests• Increased Trust in the QIB Brand.

Customers

Employees

• One screen to do everything• One source of truth• Better understanding of customer

needs• Self service reports.• Reduced paperwork due to

automation• Right set of tools to get the job

done in quick and efficient manner

• Support multiple regions and time zones

• Minimized the operational effort • Better Audit Trails, Monitoring and

Tracking• Enhanced operational control• Streamlined regulatory reporting • Readily available MIS Reporting

including P&L report to Snr. Mgmt.

The Bank

Other Support Functions

• 24/7 availability without downtime for EoD

• Reduced failure rate / system instability

• Traceability & Transparency through process automation

• Enhanced foundation for AML/KYC / FATCA capabilities

• Enabled servicing business requests fast with reduced turnaround time

• Better monitoring and tracking

In This Talk …

• About QIB

• Need for Transformation

• Transformation (iCAN) – At a glance

• What went well ?

• Lessons Learnt

What went well ? |

Board / Top Management Support & Commitment

• Board approval of Transformation Roadmap & Spending• GCEO as the Chairman of SteerCo and as Program Sponsor• Direct accountability to GMs on program deliverables

#1

What went well ? |

Organizational Readiness• Thorough exercise identifying the current state assessment on people, process and

technology readiness• Defining clear objectives and assessing organizational readiness• Creating well defined implementation roadmap

#2

What went well ? |

Stakeholder Commitment

• Identifying the right stakeholders from IT and Business with clear roles &responsibilities – full time and part-time

• Institutionalizing Rewards and Recognitions• Empowering and building collaborative relationship

#3

What went well ? |

Program Governance

• Strict requirements management and governance• Defining clear set of roles, responsibilities and accountability• Meticulously tracking risks and program status through use of EPM

#4

What went well ? |

Vendor Partnership

• Open and Transparent Relationship• Commitment of Temenos Senior Management to QIB deliverables and timelines• Right balance of Business and Technical expertise working as One Team towards common

goal beyond client vendor relationship

#5

“No, I can’t be bothered with a new technology. We’ve got a battle to fight”

What went well ? |

Change Management

• Strict customization policy; Encouraging to adopt the “best-in-class” process offered by thesystem

• Critically assessing every change for its purpose, feasibility, impact and possible workaround• Business case approval at SteerCo level for cost & schedule impact

#6

What went well ? |

Budget Control

• Ensuring strict adherence to approved budget• Reducing the non-fixed (variable) Program budget elements through strict Budget control

mechanisms• Facilitating regular budget updates to stakeholders

#7

“So, what you’re saying is that we’ve been defunct and out of business for over two years and you’ve just been waiting for the right time to tell me”

What went well ? |

Internal Communication • Effective communication forums such skip level meetings, “All Hand Meet”, multiple vendor

handshake meetings• Unified forum for collaboration across the Bank leveraging Sharepoint discussion forms,

blogs and surveys• The name of the program was coined “iCAN” after a competition among the staff members

to encourage active employee participation leading to improved synergy levels

#8

What?To

Whom ?

Status Updates Utilization

(Cost & Effort)

Issues/ Risks & Impact

Perceived Benefits

Required Mandates

Board of Directors / Sr. Management

Steering Committee / GMs Business Partners

Regulators

Customers

QIB Subsidiaries

iCAN Core Team

Audit & Compliance

QIB EndUsers

Awareness

Engagement

What went well ? |

Data Migration

• Achieved high success rate during Data Migration Mock runs (100% for static data and99.7% for financial data) in spite of legacy data quality issues

• The industry averages for similar implementations stands at 95-97%• As per Deliotte the achieved success rate is the best in the region for Islamic Data Migration

#9

What went well ? |

5 Golden Rules

#10

The program ran under the following 5 Golden Rules:

1. One Goal, One Date, One Team2. TEAM is as strong as its weakest link3. Keep it simple4. It is not EASY, but it is WORTH it5. Work Hard, Play Harder !

In This Talk …

• About QIB

• Need for Transformation

• Transformation (iCAN) – At a glance

• What went well ?

• Lessons Learnt

Lessons Learnt | #1

Non-Functional Testing Is Not Optional

• Ensure sufficient non-functional testing scope – Performance, Stress Testing, COB,

Error Handling, User Access Management, Compatibility, Usability etc

• Limited scope coverage may lead to surprises

• Pay enough attention and treat it as important as Business Requirements

Lessons Learnt | #2

Plan for CRs During UAT Phase

• At the start of UAT1, additional requirements are bound to exist

• Prioritization based on Senior Management approval is important

• Introduce reasonable workarounds where possible

Lessons Learnt | #3

Integration is a key element of Transformation

• Facilitate in depth interaction between vendors (Source & Target Systems)

• Clarity of Integration Requirement Documentation (IRDs)

• Keep an eye on Integration impact on every functional requirement

Lessons Learnt | #4

Quality Training Matters

• Start 6-9 Months before Go-Live

• Induction Training (Class Room based), Job Role Training, Assessment based with

Frequent Refresher courses and accommodating feedback

• Success of End User training makes or breaks the program

Lessons Learnt | #5

Change Management is Critical

• Communicate the transformation impact (e.g. Roles and Responsibilities)

• Maintain momentum fed by real data from the field

• Reassure people and address their concerns

Question & Answers

Gopi Krishnan (Krish)Chief Information Officer | Qatar Islamic Bank

Gopi_Krishnan@me.com Linkedin.com/in/gopikrishnan

Thank You!