San Francisco, CA, USA
December 18, 2007Core
Banking Driving Efficiency at Egyptian American Bank
Report Published by Celent
Egyptian American Bank increased profitability,
more than doubled its efficiency in the back office, and more than tripled
the efficiency ratio of customers to IT employees with a new FLEXCUBE core
banking system.
Egyptian American Bank (EAB) is a joint venture
between the government-owned Bank of Alexandria and American Express with
32 branches across Egypt. In a new report, Core Banking Driving
Efficiency at Egyptian American Bank, Celent looks at how the bank
converted its core systems to i-flex FLEXCUBE using infrastructure
technology from Oracle, Microsoft, HP, and Cisco.
EAB’s deployment plan was an accelerated one, with
core selection starting in early 2003 and going live on October 3, 2004.
The business benefits were profound. Having a single, modern integrated
system allowed the bank to become more efficient in both IT and the back
office. Back office staff dropped from 420 to 230, more than doubling
efficiency. IT staff dropped from 65 to 28, more than tripling the number
of customers per IT employee. Profitability increased by 32%. All of this
occurred while the bank was increasing its number of customers and
accounts.
Source: EAB, Celent analysis
“This was a soup to nuts core migration
in a very short time,” explained Bart
Narter, author of the report and senior analyst with Celent’s
banking group. “EAB has shown just how quickly a focused team can
effectively restructure the IT department driving efficiency at the bank.
This data confirmed that cost savings in the back office are as
significant as cost savings in IT, which is an expected core banking
migration benefit,” he continued.
This 15-page report contains seven figures.
A table of contents is available online.
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