Risk reduction, speed, and efficiency were the three clear goals SBAB had when they were to replace their core banking solution three years ago. It was also crucial to find a partner who had experience in the lending industry and would share SBAB’s long-term focus on these primary goals. Simplifying the day-to-day life of their employees was also an essential factor.
– Long-term is one of our keywords, declares Robin Silferhielm, CXO at SBAB. We needed a suitable partner with knowledge of our core business. There aren’t that many Swedish core banking partners experienced in the lending market, which is why we chose Applicon.
Implementation with a plan
Installing their new core banking solution was a long journey. Initially, SBAB spent much time ensuring their new solution would fit in with the rest of the organisation structurally and functionally.
– We made an overall plan for what parts needed to be in place and in what order. We started with private loans since it’s less complex than mortgage loans. Then we moved on to savings and payment services – both of which were stuck in an old system. We’ve recently launched mortgage loans, our most extensive and complicated service, in the new system.
Supplier and customer as one team
It’s common to let your old system keep going for too long when replacing a core banking system. This is risky. Since the old system changes over time, no one will have a complete overview of what has happened and what changes have been made since the start of the project.
– When you start reviewing your project, there are always surprises. No matter how well you plan the timeline and scope. We had an initial plan, but we also had to reconsider and adjust it along the way. Putting together a team with people from SBAB and people from Applicon is the main reason we succeeded. We don’t have a customer-supplier relationship; we share challenges and successes. We had a great working arrangement in the team. Applicon took care of everything concerning software development and monitoring of the core banking solution. SBAB handled integrations to our other systems and all things related to users and customers.
Read more:7 questions to ask when choosing your core banking supplier
A genuinely interested partner
The technical features weren't the only thing that influenced SBAB's decision to go with Applicon’s’ core banking solution. Their genuine interest in banking convinced them that the partnership would be a perfect match.
– When we contacted Applicon, we noticed they were genuinely interested in partnering with us. Sure, we checked out other major international players doing the same thing, but SBAB isn’t a huge organisation. We decided we’d rather be a more significant customer to Applicon than a smaller customer to a giant company.
A complex project
SBAB is happy with their collaboration with Applicon during their core banking transformation – the different launches in particular. The technical components ran smoothly, but as with any project, there were obstacles.
– The switch has taken more time than we planned from the beginning. But that’s something you can expect in a project like this, Robin Silferhielm explains. Replacing a core banking solution is a vast and complex mission that involves many different skills and colleagues. There are always expectations based on calculations, but the reality is often something else, and you usually end up with something different.
Read more: 5 secrets behind the successful procurement of a new core banking solution
Risk reduction and speed
Replacing the core banking solution has been successful for SBAB. Risk reduction is up and running, and they’ve shut down one out of two systems that Applicon’s’ software has replaced. SBAB has already seen results by shutting down the old system regarding reduced costs and faster processes.
– Speed is our most significant competitive advantage, and we have already seen positive results in meeting this primary goal. We will continue to work on efficiency, where there’s a lot of potential. It’s an ongoing process. There will always be things to improve and refine in our continued journey with Applicon. We consider them an integral part of our business and a long-term partner to SBAB, says Robin Silferhielm.
