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ABBA—2013 year of new challenges...

01/2013

Table of contents:

Introduction 1

ABBA @ BakuTEL 2012 2

ABOS News 3-6

ABOS v5 progressing to v6... 7-8

VKO—Virtual Loan Committees 9

ABBA gifting VK Mursa 10

ISACA lecture at FER

announcement 11

ABBA d.o.o.

Radićeva 19a

HR-31000 Osijek, Croatia

tel +385(0)31 21 50 60

fax +385(0)31 21 50 61

Branch Zagreb

Čavoglavska 13b

HR-10000 Zagreb, Croatia

ABBA Software d.o.o.— Development

Š. Petefija 70

HR-31327 Bilje, Croatia

www.abba.hr

@bb@ newsletter

Dear Ladies and Gentlemen,

another year of successful business is behind us, and in it ABBA fulfilled certain prerequisites for an even more stable growth and gained a foothold in foreign markets. New technologies that we have tested and implemented in our Solutions will allow us to develop software solutions of even greater

quality for the financial sector because daily progress and development was and remains our primary goal. When we have clients/partners who are ready to accept new technologies and fully use al l their advantages, the satisfaction is even greater. The past year was marked by numerous events that were of great significance to us, especially our lecture at the LEASING ACADEMY in Zagreb, at which our automated SPN Module

(Prevention of money laundering), which is a part of our Premium Leasing System ABBA LEASING, aroused great interest. Also, we took part in another CeBIT expo (Hanover, Germany), and in November 2012, we presented our company for the first time at BakuTel (Baku, Azerbaijan), which is the largest IT expo in the Caspian region. We are also proud of the fact that the Turkish Süzer Group is, as far as we know, the first foreign investor in the

Croatian banking sector (owner of KentBank d.d.) that purchased an IT banking solution from a Croatian software supplier, namely the ABOS NovoDoba® system. And so, KentBank d.d. recognized NovoDoba® as a system with which it can realize its very ambitious plans. The contract for implementation was signed at the end of September 2012 and, only 109 days later, the implementation of the NovoDoba® system in KentBank d.d., along with a complete data migration,

was successfully completed on 14 January 2013. The whole job done by ABBA d.o.o. was completed according

to plan and with expected results, and our experts expanded their experience in data migration, which is already broad due to the fact that the ABBA team for product implementation has taken part in over five migrations from various systems (INFIN, BankSoft, Tempus, BSS, FIBAS…), databases, and communication

and development methodologies (IBM DB2, Oracle, Cobol, Informix, MySQL). The completion of this job was proof also to ourselves that we could compete with any Core-banking supplier in the world because NovoDoba® was chosen over domestic and two global providers of banking software. Our advanced parameterization system has been additionally improved and expanded, so that our system has an

even more improved change management and overview, ultimately enabling the banks to do banking and not necessarily IT. Nevertheless, our systems and solutions are still so flexible that they can adapt to any bank and its current business method or vision of future conduction of business. The configuration of the system itself, compared to rival systems, enables far quicker changes and addition of new tasks and/or whole services/modules.

When it comes to the development and progress of our solutions during 2012, the fact that we have begun work on NovoDoba® v5.6.5 and ABBA LEASING v2.2.5 in 2013 probably speaks for itself. As numerous new ideas and improvements are in preparation for realization, or are already in test phase, the only thing we can do is wish an integrated, automated, parametrizable and very successful 2013 to you too!

Eduard Rupčić ABBA

ABBA newsletter 01/2013

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ABBA @ BakuTel2012

NovoDoba and ABBA Leasing successfully

presented at BakuTel2012 The largest telecommunications and information technology exhibition in the Caspian and Caucasus regions,

BakuTel 2012, was held in Baku Expo Centre from 06th to 9th of November.

The exhibition was supported by the Ministry of Communi-

cations and Information Technologies of Azerbaijan Repub-

lic, as well as by a number of international and industry

institutions, including the United Nations (UN) and the In-

ternational Telecommunication Union (ITU). This year 160

companies from countries including the United States, Bela-

rus, China, the Republic of Korea, Lithuania, Malaysia, Russia,

Turkey, Ukraine and other countries attended the exhibition.

Austria, Estonia, Lithuania, France, Croatia, Israel, Slove-

nia and Canada were represented at the exhibition by na-

tional groups. The IT Association of the Croatian Chamber

of Economy organized the Croatian national booth, at

which ABBA introduced itself as well. At BakuTel 2012 we

successfully presented NovoDoba, our highly efficient, au-

tomated and integrated Premium Banking Solutions and

our Premium Leasing System ABBA Leasing.

ABBA also received recognition for their presentation at

BakuTel2012. We are especially happy about the interest

for the NovoDoba® system, already shown by two banks

at the expo, and about the talks started with system inte-

grators from Baku.

ABBA newsletter 01/2013

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ABOS News

New in ABOS - NovoDoba® support for the fiscalization procedure [1/2/2013]

At the 6th Parliament session, held on 23.11.2012th The Act on fiscalization of cash transactions is passed on. ABBA d.o.o fully supported fiscalization in the NovoDoba® System by 29.1.2013.

Through generating alpha-numerical records, creating XML messages, encryption, generating protective codes, signing and communicating with Ministry of Finance, Tax Administration, the whole fiscalization procedure of cash invoices is covered.

Fiscalization module is built into the NovoDoba® system where it is organically connected to the URA/IRA Service/Module, which is also completly integrated. Partners/clients whose systems have ABBA maintenance (support) Model which includes all legal changes, fiscalization support is enabled at no charge.

Book of URA/IRA ( incoming/outgoing invoices) – Basic business functions • Parametrization of items • Creating templates for invoicing • Invoicing • Account Overview • Automatic accounts booking and automatic closing of accounts after payment

• Automatic transfer of invoices in the book IRA

• Book of IRA • Book of URA • Manual entry in the book IRA • Manual entry in the book URA • Automatic booking of manual entries in the books IRA / URA

• Creating of templates for bookings IRA/URA • Review of outstanding items (IOS) • Parametrization of invoice notes

• Parametrization of VAT articles on regarding items

• Different overviews of URA/IRA books (by number, in the period, a review of the tax)

ABBA newsletter 01/2013

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ABOS Novosti

109 days after the contract was signed - NovoDoba® successfully implemented in

KentBank d.d. [15/1/2013] After the "Contract for the delivery and implementation of Core Banking System NovoDoba®" with KentBank d.d. was signed on September 27th 2012 In Zagreb, the data migration and NovoDoba® system implementation at KentBank d.d. was successfully performed on January 14th 2013. The experts at KentBank d.d. played a major role in the fast migration and significant shortening of implementation deadlines. We would like to thank them for the enormous efforts and exceptionally well-organized work during the

extensive and complex migration and implementation. NovoDoba® is a highly efficient, automated and integrated banking system developed by experts from ABBA d.o.o., which will enable KentBank d.d. to execute ambitious plans on the Croatian market considerably easier. As far as we know, the Süzer Group (owner of KentBank d.d.) is the first foreign investor in Banking Sector in Croatia, which has invested in the domestic banking IT solution of the Croatian supplier (ABBA d.o.o.). Foreign bank owners have so far always "inherited" IT systems in banks or purchased foreign IT solutions.

Banka Brod operates in the banking market

since 1998, when it was founded as

Štedionica Brod. From 2002, Banka Brod

started operating under the new name and

the founding share capital amounted to HRK

20, 216,000.00. In July 2005, the Bank had a

capital increase and the total share capital

amounted to HRK 41,157,800.00. Its

continued growth is confirmed through

additional capitalization and opening of new

branches, so it now operates at 9 locations in

Croatia. In July 2011, Eksen Holding (Süzer

Group) took over Banka Brod d.d. and at the

begining of 2012, increased the capital up to

HRK 126,707,200.00. Süzer Group portfolio

covers a wide range of sectors including real

estate development, retail, finance, tourism

and energy. In Turkey, Süzer Group owns

Kent Leasing and Kent Factoring, the Ritz

Carlton Hotel in Istanbul, Turkish franchise of

American restaurant chain Kentucky Fried

Chicken and Pizza Hut chain. Energy part of

business is based on a majority share (63 %)

of Bahçeşehir Gas Distribution Inc., which is

the first private company dealing with natural

gas distribution in Turkey. In July 2012, the

Bank changed its name to KentBank d.d. and

moved its headquarters to Zagreb. The Bank

currently has 12 branches (Zagreb, Slavonski

Brod, Požega, Nova Gradiška, Osijek, Rijeka,

Pula, Split and Dubrovnik).

History of KentBank PLC in Croatia (Source: www.kentbank.hr)

Key lessons we learned during the process in which we have proved that migration does not have to be “long and painful”:

Thorough analysis and planning of all steps are prerequisites

for a successful data migration

Planned and complex tests by bank employees are necessary

for “smoothing out” all possible problems

Training should be repeated, and the employees “forced” to

accept new ways of thinking regarding the usage of an automated system

It is necessary to use advanced technology (MS) that can “keep

up” with an advanced solution, and not technology that “limits” the functionality of a solution

It is important to have an expert team for migration with

experience in similar projects on both sides in order to rule out or quickly overcome possible errors and challenges

Constant cooperation with experts from the bank and working

together to the same end is required

It is necessary to properly and clearly document all steps and

processes

Thorough preparation of migration files reduces or completely

cancels out the need for manual corrections of migrated data

If there is a need for customization, it is simpler to do it before

migration and implementation

Usage of the Big-Bang approach from the beginning of the

project (without simultaneous work on the old system), results in a greater mobilization of experts on both sides, which is necessary for the project to be successful

Establishing trust and a partner relationship from the start is

the key to success

Working on the stated project, our team for migration has

gained new valuable knowledge and experience which will make each subsequent implementation and migration job easier

Soon: ABBA Case Study—implementation in KentBank d.d.

ABBA newsletter 01/2013

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ABOS News

ABOS - 2D BarCode readers for HUB3 forms supported [15/11/2012] In NovoDoba ® ABOS system we added the ability to scan slips with barcodes either with automatic or semi-automatic barcode readers. All Windows compatible readers that work with barcode types that we currently use are supported. This feature significantly speeds up the entry of transfer forms, reduces staff time spent, queues at the branch office,

etc. Both old and new form formats are supported (HUB, HUB3).

Automated work with safe deposit boxes enabled [28/12/2012]

In the new version of ABOS (ABBA Banking Operation System), it is possible to contract safe deposit boxes with automatic invoice issuing, records of safe deposit box usage with overview, as well as safe deposit box contract maturity overview. Just like other ABBA services and modules, safe deposit box-related operations are fully parameterizable and allows banks to control changes.

Contracting credit lines by current/giro account [28/12/2012] In the new version of ABOS (ABBA Banking Operation System), there has been a great step forward regarding

improvements in the area of contracting credit lines by current/giro account. This part of business operations is also fully parameterizable and allows banks to control changes.

ABBA newsletter 01/2013

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ABOS News

Improvements in Service DPP [11/10/2012] In the new version of the NovoDoba System, in the Service DPP (v1.3.0), we have enabled the creation of templates for Order 14 for the Banks Department of foreign currency transactions. This will further reduce time to create common Order 14, using simple form and all the advanced features of NovoDoba System. Bank customers can still quickly and

efficiently issue their Orders 14 independently, thanks to our advanced internet banking - ABBA NetBanking.

Enabled creation and printing of account statements in IBAN form

[14/9/2012]

In the new version of ABOS we enabled the overview and printing of bank statements for business entities in IBAN form,

thus enabling the download of pdf statements in IBAN format also in internet banking. The same has been enabled for

the FINA statements as well. Since the IBAN is still in a transitional period, it is possible to "extract" statements in the

"old format", depending on the user's preference.

Improvements in ABBA HelpDesk system HOGAR [27/7/2012] In the latest version of the ABBA HelpDesk system HOGAR there are significant improvements of management and in-spection of tasks and projects. We have improved the recording of time/working hours spent on each task, which has further improved the estimate of time required to solve new tasks, which are entered through the HOGAR System. Further reports have been introduced that show the overall picture of solved tasks within a certain time period of exten-sion, which ultimately contribute to improving service quality. In addition, we introduced a historical review of the testing records that will in future be available to all customers on the "web HOGAR" and that will with their current "version Log" also provide insight into all the testing done on specific versions of applications. Additionally perfected and improved is the way of assigning rights to operators, thus further increasing the security of the

system. Beside “web HOGAR” our partners now have access to the "Desktop HOGAR." ABBA continues to work on perfecting their unique HOGAR HelpDesk System.

For other News look here

ABBA newsletter 01/2013

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ABOS v5 progressing to v6...

Parallel with the delivery of version v5 (1 Jan 2012), work begun on version v6, which will mark a new technological and business step forward. In the meantime, the system continued to make progress, and numerous novelties and improvements have been introduced. We would like to single out only the following:

Support for 2D BarCode readers, i.e. scanning of barcodes from payment slips using automatic or semi-

automatic barcode readers (both old and new formats of HUB and HUB3 forms are supported).

Automated work with safe deposit boxes enabled – in the new version of ABOS (ABBA Banking Operation

System) it is possible to contract safe deposit boxes with automatic invoice issuing, records of safe usage with overview, as well as viewing safe deposit box contract maturity. Like other ABBA services and

modules, work with Safe deposit boxes is completely parametrizable.

Contracting open-end credits by current/giro account – a great step has been made in improving the part

of contracting open-end credits by current/giro account. This part of business operations is also completely

parametrizable and makes it possible for banks to quickly and easily manage changes.

The Department of the bank’s Foreign payment operations can now create templates for Order 14

It has been enabled to view and print statements of business entities in IBAN form, thus enabling

download of .pdf statements in IBAN form (the same is possible for FINA statements)

In the new version of ABBA internet banking NetBanking, it is possible to view all issued invoices for the

selected account (this way the bank’s clients have an even better and simpler insight into the expenses for the bank’s services)

The “Standing orders” Module has been completely redesigned and reprogrammed. Apart from the

significantly expanded possibilities of defining amounts and terms; the whole process has been made

easier and the operator’s work reduced (as usual, all the settings in the NovoDoba system are fully adjustable by a foreign bank, including precise defining of standing order types)

Given that MBU introduced a new batch 041 requirement 08, in the new version of CardMod, automatic

card reissuing has been enabled. An employee in the card department does the preparation for reissuing, whereby he can cancel reissuing of certain cards. After that, batch 041 request 08 is created. Sending of batches itself is separate, so the bank has freedom of action regarding request sending.

In the foreign payment operations, creation of B07 messages for forced collection of payment bases has

been enabled, and all necessary data is automatically filled out from the incoming order itself

In the Guarantees Service, i.e. parameterization of guarantee lines, selection of periodically paid fees has

been enabled (this option provides the possibility to book fees at the beginning of the period for the period)

In the User Administration Service – UA, the history overview of changes in operator privileges and other

safety-related changes has been made easier. This way, determination of each privilege regarding operations, applications and belonging to groups with particular privileges in history has been made

additionally easier at every moment for every operator.

ABBA newsletter 01/2013

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ABOS v5 progressing to v6...

In ABBA NetBanking, conversion limit creation has been enabled at bank-level. The option is available for

conversions that have been done through the converter, whereby the limits are entered through the Treasury application. Also, it is now possible to enter people (through Treasury) for which this limit does not apply. The entered limit is viewed on the level of one working day. If the limit is not entered, it means that there is no limit.

A new feature in NetBanking is updating of clients’ additional accounts. Through the NetKontrol

application, one can determine which account types will automatically be added to the client on NetBanking along with “privileges” which the client receives depending on the type of connection with the account. Also, upon login, except account addition according to parameterized rules, an automatic clearing of closed accounts and accounts to which the client is no longer connected takes place. All of this depends

on option 148.

Since June 2012, new standardized forms for HUB3/HUB3A money orders, new file formats for group

payments, as well as ones for statements by transaction accounts been implemented. Simultaneously, a

new format for exchange of payment transaction files for the National Clearing System has been introduced into production, at all users of the NovoDoba system.

NovoDoba® Banking Services can be implemented into all existing systems, adding new value, logic and possibilities of analysis. NovoDoba® Services can also function autonomously, independent from other systems. The exceptional parameterability of the NovoDoba® System makes it even possible to implement a new product

of the bank (loan, savings…) into the system and production within the hour or less, without the need to involve our company’s or the bank’s IT experts. The flexibility of the NovoDoba® System allows it to adapt to any bank

and its current or future vision of business. The configuration of the system itself, compared to rival systems, enables far quicker changes and addition of new tasks or whole Services. The advanced parameterization system, compared to competing solutions, enables the banks to not only view, but also manage changes. Except advanced internal systems for monitoring the work of every employee, product and client’s/partner’s

request (HOGAR), ABBA d.o.o. holds quality management certification ISO 9001:2008 QMS, as well as ISO 27001:2005 ISMS (information security management system). All of the above enables us to, with an optimal number of experts, maintain systems in all banks and leasing companies which use our solutions more efficiently than the competition. Our 4 maintenance models, between which banks may choose the optimal one for them, enables transparent costs for the whole duration of the maintenance contract. Long-term saving is guaranteed because the technology used is by Microsoft (many times cheaper than others), the number of employees is

reduced (automation), integrated controls almost fully prevent the possibility of an “intentional” error, so the

outcome is great saving and a direct profit increase. Ultimately, all of the stated has one goal, and that is to increase the efficiency of banks with a greater level of automation and integration by using a Core system based on a modern and stable platform along with easier system maintenance, easier reporting, and support of a higher quality, as well as improved risk control.

ABBA newsletter 01/2013

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VKO (Virtual Loan Committees)

Fastest way from loan request to placement

Automatic Credit-scoring system with

extensive parameterization possibilities

Simple and quick risk loan evaluation

Extensive analyses for loan risk management

and easier strategic decision making

Decision making without the physical presence

of committee members

Objective work evaluation of each member of

the committee according to decision making performance

Simple and precise distribution of

responsibility in the process of loan granting

Centralized storage of all loan requests with

complete overview accessible to all members of the committee

Time and resource saving with maximum

acceleration of decision making

Dispersion of responsibility upon realized

query, collection of necessary documents, confirmation of their validity, and decision making regarding the loan

Satisfaction of bank clients through decision

making acceleration

The base of a classic Loan Committee is a certain number of members which periodically holds a meeting at a certain time on a certain place and makes decisions regarding submitted loan requests according to prescribed, i.e.

objective and subjective parameters and empirical findings.

By introducing VKO, the major flaws so far in the Loan Committees are eliminated (physical presence and periodicity), but all the the pros of the subjective evaluation and empirical findings remain, with the addition of the, until now, unseen speed of decision making. The dispersion of various levels of responsibility is an extenuating and accelerating circumstance. The bank clerk's responsibilty is to collect all necessary documents, and the branch or subsidiary manager's i.e. the person responsible's responsibility is to ascertain the validity of the submitted documents, and the real responsibility of the

Committee is only to evaluate the quality of a potential placement...

By implementing VKO, owing to the possibilities of extensive analyses, the Risk Department starts to function in risk assessment and parameter setting for the assessment as it should. Now they do not deal with each request, but analyse and make strategic decisions. Including all other pros, VKO facilitates decision making about especially important loans within 30 minutes!

ABBA Virtual Loan Committees®

Shortest loan approval times

Overview and printing of all entered requests

Evaluation with the possibility to comment

Possibility of Special decision, available to a specially

authorized member of the committee

Generate and print Decisions along with general

request specifications and evaluation by members

Various overview possibilities with loan ranking by

amount or other relevant data

Automatic loan scoring system with evaluation

category overview

Automatic creation and printing of reports on

submitted and evaluated requests, sorted by branch offices, amounts, loan types for a certain period…

Automatic creation and printing of reports on member

performance

Loan approval without the need for the members of the

Committee to meet physically

Loan request entry according to predefined queries

Request overview by status

Automatic loan scoring

Allocate special decisions

Possibility to make decisions regarding requests from

any location where a connection to the server is available

Different decision “weight” depending on member of

the committee

Reports on member performance

Reports on loan requests (quantity, status, amounts,

branch offices…)

Printing of supporting documentation, Decisions,

requests, reports

Quality preparation of data for the knowledge base and

portfolio analysis, as well as Basel II approach

ABBA newsletter 01/2013

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ABBA Donation – Video Club Mursa

On 22 December 2012, as a part of the traditional

Christmas donation action, representatives of the ABBA

d.o.o. company presented a donation to the video club

“Video klub Mursa”, i.e. to their Section for animated films,

which operates as a part of the “Dom Tehnike” Community

for technical culture of the Osječko-baranjska county. And

so, a new desktop computer replaced 8 year old equipment

used in the children’s animated film workshop.

“Video klub Mursa", formerly “Kino klub Mursa" is a citizen

organization for promoting films and film culture through

organizing and translating club production, i.e. production

of films by the authors, who are club members, and

planning, organizing, and carrying out programs for film

education for children, youth and adults.

Every year (school year) a great number of children of

primary school age participates in the workshops of the

Section for animated films led by Nataša Dorić, and

separate projects and workshops in cooperation with other

video clubs are also common.

We are especially proud of the animated film which the

Section for animated films of “Video klub Mursa” has made

for us (available on YouTube).

View the Animated ABBA film here: ABBA animirani film

We would like to express our thanks to the children for making this

ABBA animated film, which we will always gladly show wherever we

can!

The cloud is part of the animated film, and is only one of many

drawings (appears at 0:35)...

ABBA newsletter 01/2013

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A lecture titled “To New Age (Novo Doba) in only 110 days – key factors of quick and

successful migration to the new Core Banking System” is scheduled to take place at the Faculty

of Electrical Engineering and Computing (FER) in Zagreb on Monday, 4 March 2013 at 19:00. The

lecture is going to be given as a part of the monthly meetings of the Croatian ISACA branch (URKIS).

The Association’s purpose is to educate and distribute information to all its members with the goal to

improve expert knowledge in the field of information systems control, monitoring and audit. The

Association promotes and raises awareness for the necessity of information systems control,

monitoring and audit in company and organization management, as well as the public.

Lecturers: Franjo Prgić, Aurora Volarević, Karlo Kosina

Topic: To Novo doba in only 110 days – key factors of quick and successful migration to the new Core

Banking System

Date and time of meeting: 4.3.2013 at 19:00

Meeting location: Faculty of Electrical Engineering and Computing (Grey hall)

Streaming: mms://mediaserver.lss.hr/ISACA

With over 100,000 members in 180 countries, ISACA® (www.isaca.org) is the leading global provider

of knowledge, certifications, advocacy and education on information systems regarding assurance and

security, enterprise governance and management of information technology (IT), and IT-related risk

and compliance with regulations and standards.

ANNOUNCEMENT: ISACA lecture at FER

Impressum: @bb@ Newsletter

Publisher: ABBA d.o.o. S. Radića 19a, Osijek Tel. +385 31 21 50 60 Fax +385 31 21 50 61 e-mail: abba@abba.hr URL: www.abba.hr

Editor: Eduard Rupčić

Texts: Ivica Hasanec

Duško Dimitrijević

Dejan Kajinić

Lidija Pomper Kosina

Photos: Josipa Milić

Graphic Design: Astrid Getto

Abba d.o.o. develops applications in accordance

with certificates Q130711 and ISMS0112 for

the Development of banking and

business software solutions

NEW IT CHALLENGES IN BANKING

?

Soon: ABBA Conference 2013

Ensure your participation: prodaja@abba.hr