Banco Inbursa Case Study
With the addition of retail banking to their well established commercial banking business, Banco Inbursa is poised to profit. Built on a complete Fincentric Wealthview BankingT software platform, the bank is leveraging technology and their relationships with some of Mexico's largest conglomerates to create major new opportunities.
Banco Inbursa is a bank with connections
Banco Inbursa belongs to Inbursa Financial Group (Grupo Financiero Inbursa), which includes Mexico's leading brokerage, insurance, bonding and investment firms, managing assets valued at $12 billion as of September 2001. This represents a potential market of 4.4 million customers for Inbursa.
Banco Inbursa is also connected to the conglomerates Grupo Carso, which includes leading retail chain stores (Sanborns, Sears Roebuck, CompUSA) and Carso Global Telecom, which includes Mexico's national telephone company (Telmex) and Mexico's largest Internet service provider (Prodigy).
These are powerful connections, and Banco Inbursa has long recognized the opportunities they present. Two years ago it began working to realize the potential with the addition of retail banking to their business. This new strategy was designed to expand upon its commercial banking offerings by delivering: cost-efficient, 24x7 virtual retail service to medium-to-high income individuals and employees of the conglomerates' member companies; multiple points of access, including Internet and wireless access, ATM, retail modules in Sanborns stores, and full-service branches; and a full range of wealth management services, made possible by leveraging the strength of Grupo Financiero Inbursa companies.
Before Banco Inbursa could achieve any of these objectives, however, it first needed a powerful and flexible new banking system to support the strategy. According to José Heredia, Banco Inbursa's VP of Retail Services, not only did the bank need a fully integrated system that could bring all of its financial products and services together and make them available through any access channel, it also needed a system that was highly scalable to support the large volume of customers Banco Inbursa planned to acquire.
Inbursa also wanted rapid application development capabilities so it could add new products and services in a minimum amount of time. Last, but not least, it wanted all of these capabilities on a Microsoft platform. Heredia says the requirements were so demanding that his technology team anticipated a long search and budgeted for significant custom development. After completing a detailed assessment of several leading financial software providers, however, Banco Inbursa realized that one provider could meet all of the bank's needs with an existing suite of products. The company was Fincentric. The solution was Fincentric's Wealthview Wealth Management SystemT.
"Our existing system had reached capacity at 40,000 accounts.We needed a system that could handle over seven million accounts," says José Heredia, VP of Retail Services for Banco Inbursa.
Going Live with Fincentric Wealthview BankingT
Following a 12-month project implementation, Banco Inbursa's new retail banking offering went live using three Fincentric Wealthview Banking modules in June 2001.
Fincentric Wealthview BankingT now provides Inbursa's complete front-to-back office core banking services, delivered through its financial portal. It supports the bank's account management, check clearing, transfers and deposits, and gives Inbursa the ability to rapidly create customized products and services. Wealthview Enterprise ServerT, meanwhile, provides the business logic and connectivity between the other Fincentric Wealthview Banking modules, future modules, and Inbursa's existing systems - enabling consistent delivery across all channels, including numerous full service branches, multiple retail store modules through Sanborns stores, via the Internet, and now through wireless access. Wealthview Personal PortalT is a key component of Inbursa's Internet delivery strategy - a complete personalized financial portal for customers. Inbursa has recently added another virtual access channel with Wealthview WirelessT to enable the delivery of services to its customers anytime, anywhere.
Working together, the modules provide a completely customer-centric solution, focused around customers, not products. Fincentric's Wealthview Wealth Management System provides Customer Value ManagementT capabilities to support Banco Inbursa's strategies for acquiring and retaining customers, and enhancing customer profitability.
"The ability to understand customers is essential to us because we want to take advantage of cross-selling opportunities," says Heredia. "Fincentric Wealthview Banking includes tools that let us analyze the needs and the profitability of each customer, so we can begin to build our relationship with each one."
Fincentric Wealthview Banking easily passed its first test as it accommodated the smooth transfer of 47,000 Inbursa customers to the new system last June. Customer reaction to the new service has been highly positive. Since then, Inbursa has added another 30,000 accounts and is now preparing for a major scale-up as it launches several new products for retail. Inbursa is also planning for major growth as it moves toward connecting all Grupo Financiero Inbursa customers, which includes Mexico's leading brokerage, insurance, bonding and investment firms - whose total managed assets are valued at $12 billion as of September 2001.
Says Heredia, "It's just the beginning. What we've done so far is provide the platform with the implementation of Fincentric Wealthview Banking. Now that it's in place, we have the capability to take the strategy to the next phase - providing more and better services to customers while generating higher profitability from each of our customer relationships."
About Banco Inbursa:
- A member of Grupo Financiero Inbursa, one of Mexico's largest financial groups
- Launched a full range of retail banking products and services in June 2001
- Provides retail banking and wealth management services through an extensive financial portal for customers
Choice of Software:
Fincentric's Wealthview Wealth Management SystemT, including:
- Fincentric Wealthview BankingT, Wealthview Enterprise ServerT, Wealthview Personal PortalT, and Wealthview WirelessT
Banco Inbursa's Objectives:
- Provide 24x7 virtual retail service to medium-to-high income individuals and payroll employees
- Provide access across multiple channels, including:
- Internet, wireless, retail store modules, ATMs and full-service branches
- Combine the capabilities of Group Financiero Inbursa companies to offer customers a full range of wealth management services
Reasons for Choosing Fincentric Wealthview BankingT:
- Fully integrated system Web and wireless financial portals, in addition to access via all traditional channels
- Rapid application development capabilities allow Banco Inbursa to add new products and services quickly
- Highly scalable to support acquisition of large volumes of customers Microsoft platform
Results:
- Acquired 30,000 customers - growing from 47,000 to 77,000 customers in just six months
- Reduced customer response times and increased reliability of information
- Steadily increased Internet transactions, helping to reduce operating costs
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