Core Banking Operations

From retail to corporate banking, from loans to deposits, our consultants have in-depth knowledge of core banking systems and related operations.

With centuries of overall experience with core banking systems and operations, Advocate consultants have in-depth knowledge of several Core Banking Systems, e.g. Finastra Bankfusion Equation, Bankfusion MIDAS, Oracle Flexcube, Symbols.

The level of integration of a Core Banking System differs from bank to bank, sometimes the as-is provided functionality is enough, but sometimes additional developments, integrated satellite systems are developed in order to be able to provide more nuanced services or operations.

Advocate Organization Development has a leading role in supporting Hungarian Financial Institutions in Core Banking development and related services. Our professional consultants use their expertise and experience in different business and development activities that are related to the following fields and activities:

  • Business workflow and process optimization: evaluate and review business processes, identify bottlenecks and future-oriented solutions to existing problems.
  • Support and lead product development: design and introduce new products, help managing the product portfolio.
  • Core Banking System upgrades: consulting and development services for mission critical Core Banking System upgrade projects.
  • Providing end-user support and consulting services for well-known Core Banking systems: Finastra Bankfusion Equation, Bankfusion MIDAS, Oracle Flexcube, Symbols, etc.
  • Providing IT Business Analysis, Development and Testing services: IT consulting services for integrated satellite systems, middleware and distributed interfaces/applications (implementation of customer access management systems, integration to limit management, loan origination and deposit product systems, etc).

Latest Core Banking Projects

Loan Repayment Moratorium projects

The Hungarian National Bank issued the Hungarian financial institutions to introduce a loan repayment moratorium mechanism for all debtors (corporate and retail) which allowed the delay of the instalments. The loan repayment is aimed at helping to resolve the temporary difficulties of debtors, preventing the possible build-up of a liquidity crisis. Advocate consultants are participating in projects at nearly all Hungarian banks, being responsible for both the project management, business and technical analysis and Core Banking development tasks.

Bankfusion Equation upgrade projects

Our consultants were key participants in several Equation upgrade projects in many of the CEE region's market-leading Financial Institutions. Finastra (formerly known as Misys) Equation is one of the most resilient and popular core banking systems available in many enterprise-grade platforms, from mainframes to mid-frames as well, being well-known for its flexible APIs and built-in functions that makes very easy to integrate it with may smaller satellite systems that are responsible for the tailor-made processes not supported by the Core Banking System.

Because of the above mentioned, most of our clients had a diverse and populous set of satellite systems that were needed to be tested to be sure they are compatible with the new versions. Therefore, these projects' scope was not just only the upgrade to the new Equation version but making sure and client will be able to run its day-to-day operations with the currently available software repository - for many of our clients it meant a huge challenge, but Advocate consultants are known throughout the CEE region as professional Equation and Core Banking consultants, the end results were more than satisfactory- all upgrade projects lead by our project managers ended perfectly on-time and on-budget.

Automatic loan eligibility calculator

A new generation of tech-savvy customers are more engaged with mobile-based digital solutions which mandates Financial Institutions to put a stronger focus on overall e-channel developments. One of the most popular features of the new mobile banking applications are the self-service automatic loan eligibility calculator with automatic disbursement, but implementing these features require careful planning and cutting edge back-end solutions. Advocate Consultants with many years of experience in Core Banking and Digital Channels helped many Hungarian Financial Institutions to design and introduce the right solution which is able to calculate loan eligibility based on the Bank's scoring model while being compliant with regulatory restrictions regarding customer loans, and takes care of the automatic disbursement of the uncollateralized loan.

During these projects, our consultants were able to gather and analyze the requirements, assess the already available architecture and software elements and conducted an RFI for choosing the right vendor with the right solution. After the RFI, our consultants were actively working with the vendor during the integration development and testing phases which resulted in a seamless roll-out with several dozens of disbursed loans in even in the first week after the transition into production environment.

Outstanding debt collection system

The Hungarian loan and bond market experienced a major growth in the past five years which resulted in record-high outstanding loan amounts both in the Corporate and in the Household sector, which makes it necessary for every Financial Institution in Hungary to have a reliable Outstanding Debt Management System and the corresponding business processes available.

Introducing a new Debt Management System is a rather big challenge, because debt management is highly sensitive to the available underlying data, several soft data (e.g. demographics and social environment) is needed for building an effective early warning system. Because of the data-sensivity, introduction of a debt-management system mostly relies in Datawarehouse / Business Intelligence teams where sometimes the required specialized knowledge is missing regarding loans and debt management, this is way many of our clients chose Advocate consultants who have multiple years of experience in Business Intelligence and in Retail/Corporate Lending. Our consultants provided the necessary plus knowledge that made sure all the necessary data became available, all the necessary business processes were designed and all the staff received thorough training for working with the new software.

New Collateral Management System

An expanding Retail and Corporate loan market couldn't operate prudently without putting a strong emphasis on collateral management and valuation - this is a fact the Financial Institutions had the learn on their own during the Great Recession of '08. In the past few years the Hungarian loan market has nearly doubled in size having an outstanding amount of debt greater than in the times of the ill-fated Swiss Franc loans. Fortunately, because of the Hungarian National Bank's regulations the biggest part of the loans (housing loans) were secured in a prudent manner based on the maximum Loan-To-Value ratio of 80%. However, the obliged LTV ration could easily move above the treshold in case of a housing market turmoil, therefore it is extremely crucial to have a proper collateral management system responsible for maintaining the valuation information, provide early warnings and be able to support the soft collection procedures.

Advocate consultants were participating in a project with the scope of the introduction of a new Collateral Management System which would replace the old, hard-to-develop legacy solution. Our consultants were gathering then analyzing the business requirements, designed a new Collateral Management System from scrath, designed the developed the integration layer with the Datawarehouse and participated in an intensive testing phase.