“Great progress in modernizing the IT landscape and systems”
Carsten Schrader
Chief Information & Technology Officer and General Representative
Hamburg Commercial Bank has extensively modernized its IT landscape in recent years. Did this project enter the home stretch in 2022? CS Yes, you could say that. We started the conversion in mid-2019 and now hope to complete the vast majority of the work in the first half of 2023. We laid the foundation for this in 2022, which was a very eventful year overall in that we made significant progress in modernizing our IT landscape, something that applies to our credit system, our general ledger and our new central data platform, among other areas. In the fall, we also had the go-live of nCino, an application to manage our credit process. At the same time, we completed our change of payment provider in 2022, which was also a very important step in our modernization efforts. What are the biggest advantages of the new IT landscape? CS One very significant advantage is that the new IT applications operate in the cloud, which allows us greater flexibility and is more cost-effective. In the course of the IT transformation, we reduced the number of our applications by about one-third and focused strongly on standard software, which reduces complexity and is much easier to use. Working with modern technology is also much more fun and efficient. Will further improvements be made to the IT landscape in 2023? CS As we complete our work on our IT landscape, there will be changes to systems that affect our accounting, controlling and risk controlling, among other activities. And – this is also an important point – we will complete the work on our central, integrated data platform. In addition, we will continue to optimize our infrastructure and make selective additions to the application landscape. Banking has always been considered a “people business.” Why are modern, high-performance IT systems now so important for banks? CS Banking is still a people business, of course, but IT very much determines the degree to which banking is efficient. Banking’s technical components are immensely important. To a large extent, IT is what drives the quality and speed of decision-making, interactions with customers and the market, and employee satisfaction. At the same time, data are an essential asset for banks. In order to be able to use this asset, powerful and modern IT is required. Flexible, reliable, up-to-date IT therefore represents an important competitive advantage – also from a cost perspective. We are now well positioned in this area, and we are very pleased about that. In parallel with the IT transformation, the bank has started collaborating with nCino, which offers an application that supports end-to-end loan processing. What are the advantages of the new system? CS Thanks to nCino – a publicly listed company based in the US – we can control and monitor our credit process from start to finish, from the first customer contact to the final credit decision, including the necessary reporting. nCino is therefore a key application which provides a high level of transparency on our core business. Incidentally, we are the first bank in Germany to implement the system, which is already fairly widespread in the US and UK.
Will HCOB’s customers also benefit from the advances in the IT landscape? CS Naturally, our goal is to use today’s technology to better serve our customers. We want to become even faster and more efficient, and this will also benefit our customers. In addition, we are currently examining a number of ways to provide better technical support for processes so we can minimize effort on the customer side. Customers should feel that they are dealing with a modern bank. With the IT transformation and nCino, two important projects are well on their way to completion. Are there other projects designed to optimize processes and increase efficiency at the bank? CS The major changes and investments of recent years have created new opportunities for us. This year, we will be looking to make the most of these opportunities so we can make our processes faster and more efficient. To achieve this, we’ve set up the Fast & Accurate initiative. The focus here is on our credit processes and using the new technology. Perhaps we will also discover aspects that we can optimize in the new IT landscape. The goal, clearly, is to fully leverage our investment in the IT landscape. Our aspiration is to be a bank with reliable technology that is highly efficient and technically advanced. We will continue to work on achieving this goal in 2023.
New Hires at HCOB
Barbara Besendahl, Audit Center Steering & Governance & IT
“What really blew me away right from the start was the bank’s efficiency. The contract was ready just one day after my interview. That first impression has remained. I also find the bank’s decision to move its IT to the cloud very exciting. Of course, there were some initial hiccups, but that’s normal. Nevertheless, the decision shows the bank’s resolve. And that it is taking a clear path.”
Marco Schweer, Project Finance
“I’m based in the bank’s small but very dynamic London office. Despite the distance, I had a successful start, not only because I quickly had the chance to get to know my colleagues in the Hamburg office personally. As a native of Northern Germany, I find the bank’s combination of international flair and Hanseatic origins particularly appealing. The opportunities and prospects offered by the bank and my workplace in London are a terrific motivation, as are the positive and satisfying developments.”