A MAGAZINE BY IBIS MANAGEMENT
INSIGHTS 2017
THE YEAR CREDIT UNIONS MOVE BEYOND SURVIVAL
IBIS USER GROUP MEETING Responding to Global changes in Caribbean Banking
BLOCK CHAIN THINK TANK See inside for more information
SWIFT CUSTOMER SECURITY PROGRAM
IBIS ON THE MOVE New Markets, Client Visits, Award
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MAKING FINANCIAL INSTITUTIONS PROFITABLY EFFICIENT ISSUE 1 | VOL 1 | OCTOBER 2017
INTRODUCTION Dear Reader, Another Quarter has passed and we are already in the last stretch of the year. As you can see by the new INSIGHT format, we are proud to introduce our new Digital Newsletter layout to touch on some recent achievements and highlight what’s to expect during these last months of 2017. External factors from Climate disturbances to advances in block chain technology and others have and continue to impact the region and the Financial sector. Nevertheless, we are assisting our hard-hit neighboring sister-islands wherever we can, while staying abreast of developments to ensure our clients and the rest of the region have access to the latest in Payment Processing technology. During the past several months we have been seeing a complete shift in the Credit Union mind set and have had the pleasure to meet with management teams and boards of the largest and most forward-thinking Credit Unions in the Caribbean. There is a renewed focus on being more competitive, while delivering the latest features to members in an efficient manner. At IBIS Management, we are pleased to be able to assist the credit union movement in this process. You can read more on the movement in the “Future of Payment Processing for Credit Unions” article. When it comes to upcoming events, there are two very important meetings/conferences around the corner. With the Alchemy & SWISSRoute User Group Meeting (UGM) coming up in Nassau, Bahamas, and the Caribbean Association of Banks conference coming up in Santo Domingo, Dominican Republic, our team looks forward to sharing knowledge and breaking new grounds with our existing clients as well as Financial Institutions that are in process of bringing on our solutions and services. Stay tuned as a new Alchemy feature will be announced at the User Group Meeting (October 17-20), followed a launch at the Caribbean Association of Banks Conference (October 15-20). If you have not registered for either one of these conferences yet, do not wait. Go to www.ibisugm.com and www.cabconference.com. We hope you enjoy the new INSIGHT format and look forward to your feedback.
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Regards, Germaine Gibbs VP Business Development & Marketing
MAKING FINANCIAL INSTITUTIONS PROFITABLY EFFICIENT - IBIS MANAGEMENT ASSOCIATES -
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TABLE OF CONTENTS 01 Introduction About this News Letter ..
06 Articles The year Credit Unions move Beyond Survival, Customer Security Program
08 IBIS On The Move Award, Entering new markets, Client Visit
10 Upcoming Events IBIS Management User Group Meeting, CAB 40th Conference & Annual General Meeting
SWIFT CUSTOMER SECURITY PROGRAM INSIGHT |Â 3
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2017 THE YEAR CREDIT UNIONS MOVE BEYOND SURVIVAL WRITTEN BY GERMAINE GIBBS / IBIS MANAGEMENT
The more cutting-edge credit unions started revamping their organizations, changing their strategies and internal operations approximately 10 years ago. At that point IBIS Management had already been offering innovative payment processing services and solutions to banks for a number of years and thus able to meet the needs of its first credit union client. This particular credit union immediately experienced significant efficiencies within less than 3 months after implementing the Alchemy suite and was able to double its membership base through its back-office automation and EBranch for online banking. During the years that followed, our business development team continuously reached out to additional Credit Unions to build strong relationships and to create awareness of the services and solutions which resolve most payment process deficiencies. Back then, credit unions have been reluctant to change and innovate, but the tides have completely turned and we are starting to experience an overwhelming response rate and request for our solutions to elevate efficiencies, deliver demanded member services and deliver services to grow member base. In June of this year, IBIS Management Associates formed part of the delegation to Varadero, Cuba, for the 60th Annual International Convention of the Caribbean Confederation of Credit Unions (CCCU). This year’s theme was “Cooperatives: Reshaping Caribbean Sustainable development.” The delegates of the conference consisted of Management teams and Board members along with select credit union staff members. It quickly became apparent that the Credit Unions are now realizing the critical need to change and evolve to remain competitive and efficient in their thinking and business processes. They not only should change from an internal operational perspective, but also to ensure they have the services available and delivery appeal to existing and potentially new members. The topics of efficiency, automation and digitization resonated in presentations, discussions and panels along with an emphasis on how to stay current and appeal to the younger members. It was clearly visible this year that the delegations included an increased number of the younger generation staff members. CUs are seeing the benefit of involving this generation in understanding what makes the movement tick and how they can use conference leanings to improve their organization. IBIS Management attended for networking purposes but also to present its view and experience on the “Future of Payment Processing for Credit Unions.”
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The presentation conducted by Morales Esajas, Sr. Manager Client Relations and Payment Process automation expert, focused on the challenges and trends within the credit union movement and how to resolve the challenges that are within the credit union’s control. External challenges that have translated from the banking sector into the credit union movement include upcoming regulatory deadlines, AML/Compliance requirements, increased cyber-attacks as well as fraud. Internally, inefficiencies are causing significant strain on staff and as a result lower quality service for members. Most credit unions’ operations are burdened with multiple systems and multiple manual processes that lead to over-worked employees, high error rates, significant fees and other operational costs and risks. Credit Unions have realized that they have no choice but to address these challenges and become more competitive in their offerings. All, while keeping in mind that it is not only other CUs that are opening their bond that they need to watch but for banks as well as other nonbank organizations. So how will credit unions move beyond survival? Member base must grow, costs need to be kept down, systems need to be fully integrated and operational inefficiencies need to be eliminated. All while maintaining competitive saving and lending rates for members. The answer is end-to-end automation through Innovation.
2017 THE YEAR CREDIT UNIONS MOVE BEYOND SURVIVAL WRITTEN BY GERMAINE GIBBS / IBIS MANAGEMENT
The core of credit unions has always been defined by competitive rates and exceptional personalized services with a reputation for building long-term relationships with members. But personalized service and great rates alone no longer cut it in this economy. Members’ expectations have increased as they seek services with faster turnaround, more accessibility and easy-to-use tools. To respond to these needs, Credit unions are at a crossroad and must innovate through systems and process automation to improve operations and the experience of both staff and members. Complete automation of the back-office may appear like a major undertaking and the fear of change may cause stagnation. However, this is why Credit Unions are turning to the payment process improvement experts IBIS Management, to eliminate these fears and demonstrate the significant benefits when implementing Alchemy. The experts at IBIS Management thoroughly analyze each credit union’s payment environment, identify deficiencies, bridge payment process gaps and provide seamless standard or custom integration between exiting core systems and the Alchemy Suite. After implementation, a significant load is lifted off the staff as manual processes are eliminated and the chances of human errors minimized, enabling them to be more client focused and providing more personalized and efficient services.So with the back-office automated, credit unions are able look beyond their back-office, providing the much demanded services such as Automated Bill Payments, Salary deductions, Online and Mobile banking services, making their institutions and services more accessible and member-friendly. In maintaining operational excellence, credit unions need to ensure that these services flow efficiently and do not add additional manual effort and paperwork, which defeats the purpose of automation. This brings us to the statement during Mr. Esajas presentation at the CCCU Convention that resonated with several present. When asked who already had some of these innovative solutions in place (i.e. Internet Banking, Mobile Banking or Bill Payments), a few delegates responded with a show of hands. But a deep rumble was heard when the term “Expensive Fax machines” was referenced by Mr. Esajas. This obviously touched a cord. So, why such a reference? Some of you may ask. Think about Universal Studios in Orlando or Hollywood. Imagine a movie set with beautiful buildings and structures. Now visualize taking a look at what’s behind them. All you see is a façade held up by plywood and scaffolding. You are on the cutting edge to be able to offer you members internet banking, but what happens once the payment request is made online? The innovative solution turns into an expensive fax machine that staff has to physically receive, print out, move departments, manually post, manually process and finally respond to the members with a verification of debit/credit. The optimum and elegant version of Internet Banking is one that is built to process requests Straight Through, allowing members’ online payment requests to seamlessly flow through the system, be automatically checked for sanction list compliance, and be posted onto the core system to immediately reflect a new balance on the account. No need for manual processes or additional paperwork. The only instance human intervention is required is when payments halted due to non-compliance and based on predefined risk mitigation business rules set by the Credit Union.
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Alchemy’s Global Internet Banking and Mobile banking ensure a seamless interaction with existing platforms, allowing credit unions to have both a competitive front end as well as an efficient and operationally excellent backend that meets global standards of service and efficiency. For more information, contact us at IBIS Management Associates. RECENT REQUEST FOR SWIFT A recent development within the CU movement is the request for SWIFT onboarding and the implementation of SWISSRoute, an outsourced SWIFT messaging solution. Teacher and Workers Co-Operative Credit Union Ltd, is one of the most innovative CUs in the movement and among first credit unions in the Caribbean to obtain their own BIC code to be connected to the SWIFT network and have the ability to send and received SWIFT payment messages.
CUSTOMER
SECURITY PROGRAM WRITTEN BY JESSE ZIMMERMAN / IBIS MANAGEMENT
Cyber-attacks on banks and other financial institutions is no longer a new trend, it is a global threat that is constantly developing and getting more organized. SWIFT members are responsible for protecting their own environments, but in addition to this the SWIFT’s Customer Security Program (CSP) has been established to support members in withstanding possible cyber-attacks and fraud. Starting in 2018 all organizations using SWIFT must comply with new standards and maintain these on a yearly basis. These standards are based on three objectives; The SWIFT CSP requires each member to outline, document, implement and assess their payment processes and technologies against SWIFT’s set of Objectives, Principles and Controls. By now all SWIFT members should have received the details on the first Objective, which is due to SWIFT no later than then December 2017. This entails the submission of a self-attestation. The goal of the CSP is to improve the security level on the member’s side.
IMPORTANT SWISSROUTE service bureau clients will need to complete the attestation. IBIS Management cannot answer or attest the security questions related to the customer infrastructure on their behalf. However, if you require further support to complete the CSP, IBIS Management can assist and advise with regards to the security questions and provide help finding the appropriate solution or answer. Since this is the first year that SWIFT is introducing the SP, we will assist you free of charge to ensure your institution can complete the CSP timely. INSIGHT | 6
OUR PURPOSE Throughout the years, IBIS Management Associates has been dedicated to bringing operational excellence in payment processing to financial institutions. With recent developments in Blockchain technology, IBIS has formed an internal Blockchain Think Tank group to explore ideas and develop solutions to help financial institutions benefit from this disruptive technology.
The IBIS Management Blockchain Think Tank had the great pleasure to partake in a private session with Blockchain expert, Ir Olivier Rikken MBA. The group delved into the latest on the technology and trends along with future payment processing opportunities applicable to the Caribbean Financial sector. Be on the lookout as we develop compliant solutions, tools and processes to connect the region to Blockchain, from payment transfers to Smart contracts.
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BUSINESS AWARDS LAST MONTH, IBIS MANAGEMENT WAS RECOGNIZED WITH THE CURAÇAO INCLUSION AWARD FOR BEING THE MOST ACCESSIBLE ORGANIZATION.
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IBIS TEAM & MEMBERS OF THE CURACAO GOVERMENT
IN STO. DOMINGO
CRM VISIT- BELIZE
Entering New Markets IBIS Management joined the Curaçao delegation in Dominican Republic. The group included Government
CRM Visits Staying connected with our clients and showing our appreciation for their continued support is at the center of what we do. Next to sharing knowledge and building relationships at our biennial User Group Meetings (UGM), each year we select clients for a special Client Relations (CRM) visit and appreciation day. Among the clients that welcomed this special visit were Belize Bank and Heritage Bank Limited and Heritage Bank International. INSIGHT | 9
officials, government entities and local companies, including logistics, Import/export and Financial services. The purpose of the delegation was to initiate and renew relationships between Curaçao businesses and Dominican Republic organizations. Through the delegation, IBIS Management was able to meet with some of the Top Financial Institutions and Central Bank that have expressed interest in our products and solutions. This month, our Business development team will return to Dominican Republic to follow up on the meetings as well as conduct sessions on Digital Banking as requested by ABANCORD. ABANCORD is one of the financial services associations.
UPCOMING EVENTS
UGM attendees get to meet SWISSRoute and Alchemy experts, gain more insight on features and functionalities, and network with peers in Nassau, Bahamas. For more information: www.ibis-ugm.com
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