liutauras varanavičius experience of Ūkio bankas implementing information technologies in...

Liutauras Varanavičius

Experience of Ūkio bankas Implementing Information

Technologies in Financial Services



The BankThe Bank

Ūkio bankas:First commercial bank in Lithuania, founded in 1989.Universal commercial bank, offering a complete portfolio of banking services. 12 branches and 9 client service departments.



HistoryHistory

Until 1999 Ūkio bankas offered its clients standard banking services.

Development of information technologies was not a priority sphere of activities.

Ūkio bankas competitiveness in the field of information technologies and modern banking services was low.



The strategyThe strategy In 1999 Ūkio bankas introduced new business

strategy. It was based on:

Exclusive integrated banking services, taking into account possibility to use IT. Personal approach.

Geographical market expansion.

IT development became an important part of Ūkio bankas business strategy.



The IT strategyThe IT strategy

New IT strategy was based on:

innovation

personal approach.

Introduction of new technologies and their implementation in providing financial services became a priority business development trend for Ūkio bankas.



Up-front productsUp-front products

to present new products, which have great potential for the future.

to be in front in order to be among the first to offer new products for clients.

This does not mean that our task is to invest in all the new developments that are available in the market, but to follow developments that proved in businesses.



Internet bankingInternet banking

In 2000 Ūkio bankas offered its clients Internet banking services.

Ūkio bankas Internet banking system Eta bankas allows its private and corporate customers and business partners to use a wide range of conventional Ūkio bankas services.



Main difficulties and beliefsMain difficulties and beliefs In year 2000 it was difficult to project revenues

from new Internet banking products. However Bank believed that Internet banking

services will:attract new clients and satisfy the needs of existing ones,help the Bank to stay competitive in the banking market,allow to expand Bank’s activities geographically.



The right partnersThe right partners

Success of implementing new IT strategy was

greatly influenced by Bank’s right choice of business partners:IBMEtronika



Internet banking services Internet banking services to Corporate clientsto Corporate clients

Special attentionPrivate contacts and solutions Understanding and forseeing

Internet banking system Eta bankas initially was created to meet high requirements of Ūkio bankas corporate clients. With the help of Internet banking Ūkio bankas Lithuanian and international clients can manage their business finances while being in Lithuania just as well as abroad.



B2BB2B

Ūkio bankas was the first bank in Lithuania that by using Internet became an intermediary between a wholesaler and a retailer and started supplying Business-to-Business services.

This system was implemented by UAB

“Etronika” together with “CHS Baltic” (at present – GNT Lithuania) and focuses on business customers.

B2B

Eta BankasGNT

Lithuania

1Choosing goods

2 Signing payment

order

3Deliveri

ng goods



Internet banking services to Internet banking services to Private clientsPrivate clients

Adapting for retail market.Giving private clients more options to manage their finances. Using experience, which was gained during implementation of B2B and financial services to corporate clients in Internet.

Number of people, using Internet in Lithuania is steadily growing and this business sphere seems to be highly promising in the future.



B2CB2C Ūkio bankas created B2C, which will let

private clients pay for different products and services using Eta bankas system.

In September 2002 Ūkio bankas implemented a project with Bitė GSM, mobile services provider in Lithuania, which enabled its clients to buy a LABAS reload card of a desirable value in internet making payments through Eta bankas system.

B2CB2C



Internet banking servicesInternet banking servicesIn Eta bankas clients can:

Make payment orders in LTL and in foreign currency; Acquire information about carrying out payment orders; Establish a system of regular payments Receive copies and statements of accounts; Receive account statement by e-mail; Manage means in several accounts simultaneously, including credit card account, transfer means from one account to another; Receive message by e-mail or SMS to mobile phone, when the set account balance changed;

Receive information about accounts balances or five last debit, credit

transactions by SMS to mobile phone. Receive exchange rates announced by Lietuvos bankas and commercial rates announced by Ukio bankas and buy/sell currency (make conversion of currency); Form the data base of your clients; Integrate internet banking into company’s accounting system.



Eurocard/Mastercard Eurocard/Mastercard Virtual CardVirtual Card

In 2001 Ūkio bankas was the first bank in Lithuania to issue The Eurocard/MasterCard Virtual card.

This card is a special payment card for settlements in Internet. It may be used in all Internet shops and fairs with the

Eurocard/MasterCard logo displayed.



SSecuriecurityty Eta bankas distinguishes for high level of security. A module of electronic authentication and generation of

electronic signatures implemented in Eta bankas enables business clients to use Vasco Data Security electronic generators of signatures. These devices are able to generate both onetime registration passwords of users and electronic signatures. The combination of these functions adapted in Eta bankas is absolutely unique, having no analogous among other commercial banks of Lithuania.

In the module for communicating financial messages implemented in Eta bankas, original numbering technologies from RSA Security (USA).

These measures ensure the safety of electronic payments and information within Eta bankas. Ukio Bankas became the first bank to use such high-level security devices in the former Soviet Union area.



Internet banking as exportInternet banking as export Ūkio bankas investments in security (RSA)

allow the Bank to offer other banks to have their Internet banking in a very short time through Internet banking system Eta bankas using correspondent accounts in Ūkio bankas.

The product is more suitable for small to medium size or offshore banks, which haven’t got their internet banking system yet. Good example of such activities can be Balkan Investment bank A.D. Other banks can not be mentioned due to confidentiality reasons.

BIBBIB



AwardsAwards

In 2002 at International Exhibition Infobalt’2002 “Banktron” software on the basis of which Eta bankas, Internet banking system of Ūkio bankas, was developed, was awarded the title of the year’s product.



The main goal of Ūkio bankas e-commerce is to be e-ready when our clients or partners decide that it is

time for them to enter e-commerce.

We have to be ready.

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