Moscow, Russia (c) alexandergusev.com

Moscow, Russia (c) alexandergusev.com

Russia-based banking software vendor, Programbank, has recently rebranded its offering and it is now known as Programbank.CBS. Previously, it was sold under the Centaur Omega name.

There was also another core offering aimed at smaller banks, Gefest, and this has been incorporated into the Programbank.CBS product portfolio too.

A recent taker of Programbank.CBS is Moscow-based BBR Bank (formerly Baltic Development Bank). The new solution was purchased to cover its core, reporting, lending and front office activities.

The bank is a sizeable player in the domestic market, currently ranking as 85th in the country by net profit and 112th by assets.

Interestingly, in 2011, the bank embarked on a major core banking software modernisation project with another domestic supplier, CFT. CFT-Bank was set to replace a legacy solution from yet another local vendor, Unisab.

Alexander Tutunnik, the bank’s first deputy chairman and head of retail at the time, told IBS Intelligence that the bank also evaluated Diasoft (another Russian banking software provider) alongside CFT, as it regarded these two providers to be ‘the current leaders of the Russian core banking software market’.

CFT’s software was going to cover all main operations of BBR Bank, front-to-back office operations of BBR Bank. Tutunnik admitted that ‘putting all eggs in one basket’ in terms of relying on a single supplier was a concern, but given the size of the bank ‘we simply do not need complicated interfaces and support by multiple parties’.

The main challenge, in his view, was ‘the people factor’. Breaking a traditional, historic set-up is hard and there is always resistance to change, he observed. ‘A society largely consists of conservatives while the innovators are in the minority.’

Tutunnik left BBR Bank just eight months into his tenure. The project with CFT did not work out at the bank, IBS Journal understands, hence the new venture with Programbank.

Meanwhile, Programbank.CBS is also being rolled out at a small regional bank, Khakassky Municipal Bank.

The bank signed for the new solution in November last year.

The acquired modules include core, reporting, loans and deposits, safe deposit boxes and FATCA compliance.

By Tanya Andreasyan

Programbank and other Russian banking software vendors are profiled in IBS’s annual Russian Vendors Sales League Table. The new Sales League Table will be published in March.

by IBS Intelligence
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