Mr. Phan Dao Vu First Deputy General Director Indovina Bank Ltd, Vietnam

1. Strategies for a Successful Core Banking Implementation -   The roll out of FLEXCUBE at Indovina Bank, Vietnam Mr. Phan Dao Vu First Deputy General Director Indovina Bank Ltd, Vietnam

2. Indovina Bank • Vietnam’s first joint venture bank • Joint venture between Industrial and Commercial Bank of Vietnam (ICBV) and Cathay United Bank (CUB), Taiwan

3. Indovina Bank - Business Areas • Loans – Foreign and Local currency • Deposits – Foreign and Local currency • Trade Finance • Remittances • Foreign Exchange • Money market • Investment • Card business • Correspondent Banking

4. GROWTH IN BUSINESSTOTAL ASSETS GROWTH 2001 - 2005 5000 4550 4000 3552 3216 3000 VND MILLIONS 1968 2000 1648 1000 0 2001 2002 2003 2004 2005

5. OUTSTANDING LOAN GROWTH 2001-2005 3200 2816 2144 1616 VND MILLIONS 1264

6. 4000 3300 3500 2720 3000 2368 2500 2000 1280 1500 992 1000 500 0 2001 2002 2003 2004 2005 DEPOSIT GROWTH 2001 - 2005 VND MILLIONS

7. PROFIT GROWTH IN 2001 - 2005 VND 96000 VND MILLIONS VND 75440 VND 48224 VND 46686 VND 36086 2004 2001 2002 2003 2005

8. Need for a New Core Banking System • Develop capability to provide world class customer service • Establish global banking standards to prepare for WTO accession • Incorporate new generation banking technology for competitive advantage in the Vietnamese market • Incorporate bank-wide Risk Management practices • Develop a platform to enable multiple channel delivery

9. Selection of a core banking system • Evaluation of the solution providers • Track Record - prior implementation and support experience • Maturity – of the solution and the vendor. • Flexibility – ability to extend functionality and scalability • Support – speed and quality of support • Cost • Most important: Attitude

10. Why Indovina chose i-flex’s FLEXCUBE? • Maximum Functional Coverage • Unmatched Flexibility • Could be easily deployed across multiple entities • Based on Oracle Technology • Proven in Vietnam and globally

11. Strategy for implementation • Phase wise implementation in line with bank’s plans • First pilot to go live in 3.5 months • Implementation with minimum customization • Ensure strict adherence to timelines One of the fastest FLEXCUBE pilot implementations globally!!!

12. Challenges anticipated • Strong Project Team • Internal user resistance • Aggressive timeline • Conversion issues • Change management

13. Steps to a successful implementation • Create strong Internal Process Management • Evangelize Knowledge sharing and Training • Set Parameters based on the current requirements • Incorporate Rigorous Testing procedures • Flexibility to modify, change course • Data Conversion while ensuring Data Integrity • Parallel Run – The final confidence booster! • Go Live !

14. Key Learnings • Setting up the right project team • Focus on modules with high volume transactions • Having an overall view on the service/ product to be offered before defining products • Concise and focused training programmes

15. Transformations with FLEXCUBE • Fully centralized data across the bank • Head Office has complete picture of branch activities • Head Office has a complete customer view centrally • Easier control and operational management • No technology staff and operations at the branch required • Complete automation of complex business processes such as LC, Discounting etc. • Removal of all manual processes • Much reduced margin of error • Bank staff available for other activities

16. Future Plans • Increase the number of channels in the near future such as ATM, Internet Banking & Mobile Banking • Launch new products based on the flexible options available • Expansion in branch network FLEXCUBE has provided Indovina Bank an advanced platform to sustain and further our exponential growth…

17. Thank you