Core Banking Driving Efficiency at Egyptian American Bank

by Bart Narter, December 18, 2007

Abstract

San Francisco, CA, USA December 18, 2007

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, , 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. 

Members of Celent's Retail Banking and Wholesale Banking research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.  

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

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Table of Contents

San Francisco, CA, USA December 18, 2007

Executive Summary 03
Introduction 04
Core Banking Selection 06
Business Benefits 10
Technology 12
Conclusion 15

 

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