Systems of remote banking service - CNews

August
2011
SYSTEMS OF REMOTE BANKING
SERVICE IN 100% NON-RESIDENT
FINANCIAL INSTITUTIONS
MARKET RESEARCH

2
SYSTEMS OF REMOTE BANKING SERVICE IN 100% NON-RESIDENT
FINANCIAL INSTITUTIONS MARKET RESEARCH

SYSTEMS OF REMOTE BANKING SERVICE IN 100%
NON-RESIDENT FINANCIAL INSTITUTIONS MARKET RESEARCH
OBJECTIVE
The objective of the research is to present unbiased data on the market of the remote banking service systems (RBS) employed
by 100% non-resident financial institutions to deliver remote banking services to corporate and private customers.
OBJECT
In the course of the research 80 100% non-resident financial institutions were investigated according to the data provided
by the Central Bank of the Russian Federation as of 01.01.2011.
METHODOLOGY AND CALCULATION ALGORITHM
During the research the basic methods of gathering the information were interviewing competent staff members from 100%
non-resident financial institutions as far as desk research. At the result of the investigation there has been received the information
on the employed systems of remote banking service of corporate («bank-client», «Internet-client», «cash management
system» and others) and private customers («Internet-bank», «telephone-bank», «mobile bank», «self-service terminal»).
In the course of the research the following RBS systems vendor companies were studied (listed in alphabetical order):
• Actis Systems
• BIFIT
• BSC Praha
• BSS (Bank Soft Systems)
• CFT
• CMA Small Systems
• Comita
• Compass +
The following basic quantity indexes were used:
• Diasoft
• Exclusive-processing
• Forbis
• HandySolutions
• Inist
• Intervale
• Inversia
• Magic World
• Master-Domino
• Omicron
• Open Way
• Quorum
• RFC
• R-Style Softlab
• Rucard
• Step Up
• B i indicating the level of penetration into the market of remote banking systems achieved by a vendor company calculated
as a ratio of the number of installations performed by the given company N i to the total number of banks under the
investigation M i :
B i
• D i indicating a vendor company’s market share calculated as a ratio of the number of installations of the given system
performed by the given company N i to the number of installations performed by all companies in banks under the investigation:
D i
=
=
N i
M i
N i
N i
The summation is carried out for all vendor companies mentioned above.
If a bank has a system installed by different vendors, the individual share of each vendor is calculated as a ratio of the number
of systems produced by the given vendor company to the total number of systems of the given type operating in a bank.
3

4
SYSTEMS OF REMOTE BANKING SERVICE IN 100% NON-RESIDENT
FINANCIAL INSTITUTIONS MARKET RESEARCH
RESULTS
The research of 100% non-resident financial institutions has shown that the system of remote banking service of corporate customers
is used in 82,3% of non-resident financial institutions. The «Internet-client» is the most popular RBS system for corporate
customers and is applied in 72,2% of such organizations. The second place by popularity takes the «bank-client» system used by
59,2% of 100% non-resident financial institutions. «Cash management system» is used in 5,9% of them.
On the market of remote banking systems for corporate customers in a segment of 100% non-resident financial institutions in
terms of penetration level BSS company has the leading position – both as a whole and by separate types of systems. The level
of penetration of BSS on all the systems («bank-client», «Internet-client» and «cash management system») makes 28,2%, on the
systems of the «Internet-client» type - 41,7%, «bank-client» - 38,2%. The second place belongs to BIFIT company with the level
of penetration of 7,2%. The third place belongs to the self-designed solutions of banks - 3,7%.
Estimation of shares of vendor companies of remote banking systems for corporate customers among 100% non-resident
financial institutions has shown that the positions of the major players of the market were distributed similarly. The first place on
all the three systems belongs to BSS company with 60,4% of installed applications, 64,4% on the «bank-client» system, 57,7 on
the «Internet-client» system. The second place takes BIFIT company with a total share of 15,3%. The third place is taken by the
self-designed solutions of banks – 7,9%. The share of other market players does not exceed 5,0% on all the systems.
As of 2011 BSS company is clearly marked leader of the market of remote banking service systems for corporate customers in
a segment of 100% non-resident financial institutions with a considerable separation from other players. More than half of the
market belongs to BSS (60,4%). Thus the share increase of BSS has been marked throughout several years - from 54,9% in 2008
to 60,4% in 2011.
100% non-resident financial institutions operating on the Russian market are focused, to a greater extent, on the corporate segment.
Only 30,4% of them use the systems of remote banking service of private customers: systems of the «Internet-bank» type
are established in all financial institutions with the given kind of service, «telephone-bank» and «mobile bank» - in 6,8% each,
and only 4,6% of such organizations use «self-service terminals» for private customers. The highest share on all the systems
belongs to BSS company - 32,4%. On the second place - BSC Praha with a share of 8,1%, the third place and 5,4% of the market
belongs to BIFIT company, accordingly.
In 87,5% of 100% non-resident financial institutions using the RBS system for private customers, the system is integrated with
their internal information systems, in 29,2% - with the external payment systems.
It is necessary to notice, that the segment of 100% non-resident financial institutions is heterogeneous, since the factor which
has been put as a basis of formation of the given segment is the presence of the foreign capital. Thus other factors influencing
the consumer behaviour, such as size of actives, target segments and others, can be extremely diverse in the given segment.

THE MARKET STRUCTURE OF RBS SYSTEMS FOR PRIVATE
CUSTOMERS BROKEN DOWN BY VENDOR
(based on the data on 100% non-resident financial institutions)
100% non-resident financial institutions operating on the Russian market are mainly focused on the corporate segment. Only
30,4% of them use the system of remote banking service of private customers: systems of the «Internet-bank» type are established
in all banks with the given kind of service, «telephone-bank» and «mobile bank» - in 6,8% each, and only 4,6% of such
organizations use «self-service terminals» for private customers.
Below is presented the market structure of RBS systems for private customers on all the reviewed types of systems in general.
self-designed
solution
35,1%
13,6%
others
5,4%
CFT
5,4% BIFIT
32,4%
BSS
8,1% BSC Praha
«Others» category is presented by vendors/systems which have received totally only one answer (Asys2, FlashCheque, RFC, Intervale), or variants of answers when
the name of the system/vendor has not been named by the respondent or presented on the web-site (i.e. in case when a bank explores a system, but the vendor is
unknown to the respondent).
THE INTEGRATION OF RBS SYSTEMS FOR PRIVATE CUSTOMERS
WITH THE INTERNAL INFORMATION SYSTEMS OF A BANK
(based on the data on 100% non-resident financial institutions)
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6
SYSTEMS OF REMOTE BANKING SERVICE IN 100% NON-RESIDENT
FINANCIAL INSTITUTIONS MARKET RESEARCH
self-designed solution 4,4%
others 13,4%
BANK-CLIENT
THE MARKET STRUCTURE OF RBS SYSTEMS FOR CORPORATE
CUSTOMERS BROKEN DOWN BY VENDOR
(based on the data on 100% non-resident financial institutions)
Inversia 6,7%
self-designed solution
Inversia 6,7%
BIFIT 11,1%
self-designed solution
others
R-Style Softlab 3,8%
Inist
others 13,4%
3,8%
6,8%
BIFIT 18,3%
self-designed solution
others
R-Style Softlab 3,0%
Inversia
BIFIT
3,0%
10,4%
15,3%
4,4% BANK-CLIENT
BIFIT 11,1%
9,6%
7,9%
64,4%
BSS
self-designed solution
INTERNET-CLIENT
BIFIT
others
R-Style Softlab 3,8%
Inist
3,8%
18,3%
57,7%
BSS
60,4%
BSS
6,8%
TOTAL BY SUBSYSTEMS
9,6%
64,4%
BSS
INTERNET-CLIENT
57,7%
BSS
self-designed sol
Inversia
others
BIFIT
1
R-Style Softlab 3,0%
3,0%
15,3

used
not used
self-designed
solution
not used
designed
ution
40,8%
27,8%
6,9%
40,8%
self-designed
solution
not used
27,8%
others 4,8%
R-Style Softlab self-designed 2,8%
solution 6,9%
2,8% 13,2%
Inist BIFIT
others 4,8%
2,6% 7,9%
others
R-Style Softlab 2,8%
2,8%
Inist
BANK-CLIENT
(based on the data on 100% non-resident 38,2% financial institutions)
BSS
2,6% 7,9%
others
BANK-CLIENT
THE LEVEL OF PENETRATION OF RBS SYSTEMS FOR
CORPORATE CUSTOMERS BROKEN DOWN BY VENDOR
6,6% BIFIT
3,9% Inversia
INTERNET-CLIENT
not used
6,6% BIFIT
3,9% Inversia
38,2%
BSS
INTERNET-CLIENT
13,2%
BIFIT
41,7%
BSS
self-designed
solution
40,8%
self-designed
solution
not 41,7% used
BSS
others
27,8%
6,9%
4,8%
2,6% 7,9%
others
R-Style Softlab 2,8%
2,8%
Inist
not used 53,2%
not used
53,2%
BANK-CLIENT
6,6% BIFIT
3,9% Inversia
38,2%
BSS
INTERNET-CLIENT
13,2%
BIFIT
41,7%
BSS
TOTAL BY SUBSYSTEMS
7
TOTAL 28,2% BY SUBSYSTEM
BSS
7,2% BIFIT
28,2%
BSS
not used 53,
1,4% Inversia
1,4% R-Style Softlab
4,9%
7,2%
others
BIFIT
3,7%
self-designed solution 1,4% Inversia
1,4% R-Style Soft
4,9%
others
3,7%

8
Vendor
SYSTEMS OF REMOTE BANKING SERVICE IN 100% NON-RESIDENT
FINANCIAL INSTITUTIONS MARKET RESEARCH
THE COMPARISON OF APPLICATIONS INSTALLED IN 100%
NON-RESIDENT FINANCIAL INSTITUTIONS FOR THE THREE
TYPES OF RBS SYSTEMS FOR CORPORATE CUSTOMERS
DEVELOPED BY LEADING VENDOR COMPANIES
Bank-Client Internet-Client Cash management system Total by the
company
BSS 29 30 2 61
BIFIT 5 9,5 1 15,5
Others 5 5,5 0 10,5
Self-designed solution 2 5 1 8
Inversia 3 0 0 3
R-Style Softlab 1 2 0 3
Total by the subsystem 45 52 4 101
THE COMPARATIVE FIGURES OF APPLICATIONS INSTALLED
IN 100% NON-RESIDENT FINANCIAL INSTITUTIONS FOR THE
THREE TYPES OF RBS SYSTEMS FOR CORPORATE CUSTOMERS
DEVELOPED BY LEADING VENDOR COMPANIES, %
Vendor
Bank-Client Internet-Client Cash management system Total by the
company
BSS 64,4 57,7 50 60,4
BIFIT 11,1 18,3 25 15,3
Others 11,1 10,6 0 10,4
Self-designed solution 4,43 9,6 25 7,9
Inversia 6,74 0 0 3
R-Style Softlab 2,23 3,8 0 3
Total by the subsystem 100 100 100 100

THE COMPARATIVE FIGURES OF APPLICATIONS INSTALLED IN
100% NON-RESIDENT FINANCIAL INSTITUTIONS FOR THE THREE
TYPES OF RBS SYSTEMS FOR CORPORATE CUSTOMERS
DEVELOPED BY LEADING VENDOR COMPANIES
BSS
%
70
60
50
40
30
20
10
0
%
others
30
20
10
0
Bankclient
61,8
Bankclient
11,1
Internetclient
49,4 57,7
Internetclient
Cash management
system
Diasoft, Inversia, Inist, Omicron,
Quorum, RFC, CFT, Magic World
10,6 0
Cash management
system
BIFIT
%
30
20
10
0
%
30
20
10
0
Bankclient
11,1
R-Style Softlab
%
20
0
10
Bankclient
2,2
Bankclient
4,4
Internetclient
18,3 25,0
Internetclient
self-designed solution
3,8 0
Internetclient
9,6 25,0
Cash management
system
Cash management
system
Cash management
system
9

10
Vendor
SYSTEMS OF REMOTE BANKING SERVICE IN 100% NON-RESIDENT
FINANCIAL INSTITUTIONS MARKET RESEARCH
THE NUMBER OF INSTALLED APPLICATIONS IN
100% NON-RESIDENT FINANCIAL INSTITUTIONS FOR THE
THREE TYPES OF RBS SYSTEMS FOR CORPORATE CUSTOMERS
Vendor
Bank-client Internet-client Cash management system Total by the
company
BSS 29 30 2 61
BIFIT 5 9,5 1 15,5
Self-designed solution 2 5 1 8
Inversia 3 0 0 3
R-Style Softlab 1 2 0 3
Inist 1 2 0 3
Omicron 1 1 0 2
Quorum 1 0 0 1
RFC 0 1 0 1
CFT 0 1 0 1
Magic World 1 0 0 1
FlashCheque* 1 0 0 1
Diasoft 0 0,5 0 0,5
Others** 1 0 0 1
Total by the subsystem 45 52 4 101
SHARES OF INSTALLED APPLICATIONS IN
100% NON-RESIDENT FINANCIAL INSTITUTIONS FOR THE
THREE TYPES OF RBS SYSTEMS FOR CORPORATE CUSTOMERS
Bank-client Internet-client Cash management system Total by the
company
BSS 64,4 57,7 50 60,4
BIFIT 11,1 18,3 25 15,3
Self-designed solution 4,4 9,6 25 7,9
Inversia 6,7 0 0 3
R-Style Softlab 2,2 3,8 0 3
Inist 0 3,8 0 2
Omicron 2,2 1,9 0 2
Quorum 2,2 0 0 1
RFC 0 1,9 0 1
CFT 0 1,9 0 1
Magic World 2,2 0 0 1
FlashCheque* 2,2 0 0 1
Diasoft 0 1 0 0,4
Others** 2,2 0 0 1
Total by the subsystem 100 100 100 100
* FlashCheque payment system was developed by Runetbank, Bank Familniy and Internet-provider «Ukr.Net». FlashCheque kiosk is used as an application for the
purpose of providing of financial operations, it fulfills the functions of the «bank-client» programme.
** In the «Others» column are included the respondents’ answers confirmed the system existence, but without indication of its developer.

THE DYNAMICS OF RBS SYSTEMS FOR CORPORATE
CUSTOMERS MARKET BROKEN DOWN BY VENDOR
(based on the data on 100% non-resident financial institutions)
%
100
80
60
40
20
0
Below is presented the changing of the market structure of RBS systems for corporate customers in the
segment of 100% non-resident financial institutions during the period since 2008 till 2011. In 2011 BSS
company has kept the leading position in the market, thus having increased its share from 58,4% in 2010
to 60,4% in 2011.
17,4
5,8
4,3
7,2
8,8
54,9
1,4
BSS
BIFIT
self-designed
solution
15,2
2,0
3,0
2,5
10,1
8,6
58,6
Diasoft
Inversia
RFC
12,6
4,2
2,6
2,1
10,5
58,4
2008 2009 2010 2011
9,5
others
11,9
3,0
7,9
15,3
60,4
1,0
0,5
11

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SYSTEMS OF REMOTE BANKING SERVICE IN 100% NON-RESIDENT
FINANCIAL INSTITUTIONS MARKET RESEARCH
THE LIST OF OPERATING 100% NON-RESIDENT
FINANCIAL INSTITUTIONS
(according to the data provided by the Central Bank of the Russian Federation as of 01.01.2011)
№ Name of credit institution Nominal
capital
(thou. rub.)
1 ABM Bank 206 400,00
2 Absolut Bank 1 844 840,00
3 Alef-Bank 1 125 817,20
4 American Express Bank 377 244,00
5 Anelik RU 19 000,00
6 Azia Invest Bank 72 166,90
7 Banca Intesa 10 820 180,80
8 BANK CAPITAL-MOSCOW 62 000,00
9 Bank Credit Suisse (Moscow) 460 000,00
10 Bank of China (ELUOSI) 935 000,00
11 Bank of Tokyo-Mitsubishi UFJ (Eurasia) 2 917 913,00
12 Bank PSA Finance RUS 200 000,00
13 Bank WestLB Vostok 1 600 000,00
14 Banque Societe Generale Vostok (BSGV) 12 918 000,00
15 Barclays Bank 3 133 934,00
16 BCK-Moscow Bank 625 000,00
17 BMV Bank 895 000,00
18 BNP Paribas Bank 4 161 990,00
19 BNP Paribas Vostok 1 890 000,00
20 Citibank 1 000 000,00
21 Commercial Bank Delta Credit 2 586 999,90
22 Commercial Bank of India 593 970,40
23 COMMERZBANK (EURASIJA) 2 155 600,00
24 Crédit Agricole CIB 2 883 000,00
25 Danske Bank 1 048 000,00
26 Deutsche Bank 1 237 450,00
27 Dexia Bank 1 128 608,70
28 DnB NOR Monchebank 800 000,00
29 Eurasian Bank 239 210,00
30 Euroinvest 39 000,00
31 Financial Standard 245 000,00
32 Flexinvest Bank 14 879,80
33 FORUS Bank 300 200,00
34 Garanti Bank Moscow 441 150,00
35 Goldman Sachs Bank 1 450 000,00
36 Hellenic Bank 375 000,00
37 Home Credit and Finance Bank 4 173 000,00
38 HSBC Bank (RR) 6 888 000,00
39 ICICI Bank Eurasia 1 594 077,50
40 ING Bank (Eurasia) 10 000 010,30

№ Name of credit institution Nominal
capital
(thou. rub.)
41 Investment Bank VESTA 375 500,00
42 J&T Bank 350 000,00
43 J.P. Morgan International 2 715 315,00
44 Mercedes-Benz Bank Rus 1 750 142,00
45 MIR BUSINESS BANK 1 108 000,00
46 Mizuho Corporate Bank (Moscow) 2 620 482,90
47 Morgan Stanley Bank 2 000 000,00
48 Moskommertsbank 1 443 600,00
49 National Standard Bank* 3 035 000,00
50 Natixis Bank 1 116 180,00
51 NBK-Bank 1 088 820,00
52 NORVIK Bank 700 000,00
53 Omsk Commercial Bank Sibir 849 800,00
54 Promsvyazbank (PSB)* 10 443 008,50
55 Rabobank 1 300 000,00
56 Raiffeisenbank 36 711 260,00
57 RunetBank 31 360,00
58 RusFinance Bank 12 016 959,60
59 SEB Bank 2 392 000,00
60 Sovcombank 1 097 561,00
61 Sumitomo Mitsui Rus Bank 1 600 000,00
62 Svenska Handelsbanken 1 530 000,00
63 Swedbank 5 037 999,80
64 The Industrial and Commercial Bank of China 1 000 000,00
65 THE INTERNATIONAL BANK OF AZERBAIJAN – MOSCOW 511 540,00
66 The Investment Bank of Kuban (IBK) 189 000,00
67 The Royal Bank of Scotland 2 751 177,30
68 Tinkoff Credit Systems Bank 1 472 000,00
69 Toyota Bank 1 360 000,00
70 Troika Dialog 1 174 000,00
71 UBS Bank 1 250 000,00
72 UNIASTRUM BANK 5 099 865,00
73 UniCredit Bank 27 264 345,40
74 United Development Bank 269 420,00
75 Volkswagen Bank Rus 880 000,00
76 VRB 210 000,00
77 Western Union DP Vostok 42 900,00
78 Woori Bank 500 000,00
79 Yapi Kredi Bank Moscow 478 272,00
80 Ziraat Bank Moscow 674 810,50
13

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