Background
Rabobank is one of the worlds most successful cooperative banks, in which is made up of over 100 local Rabobanks in the Netherlands, each operating with a degree of independence to enable better service to their customers and communities. Rabobank employs over 40,000 people and focuses on customers in the global food and agriculture sector and in the Netherlands, on F&A, retail, and private banking customers.
To build on their brand promise of ‘becoming the top innovator in the Dutch banking sector’, Rabobank teamed up with SAP to replace its legacy loans and collaterals platform. SAP was the vendor of choice, due to its longstanding relationship and superior capability when it came to the Straight Through processing of payments.
The Challenge
Replacing a system that has been in operating for over 20-years, brings migration related challenges, due to the inconsistent data quality, knowledge of the legacy system and data volumes. Whilst the focus was on executing a low-risk cutover, Rabobank laid a timely delivery of under a few months and wanted to ensure data consistent, integrity and security were kept throughout, with no loss of legacy data.
The Solution
Rabobank turned to long term partners and SAP migration specialists, bancon to execute the migration of clients from the legacy solution. We have supported Rabobank in all of their SAP related migrations, so had a deep understanding of the challenges they would face and IT landscape. Rabobank also valued our history of having led or executed the majority of all worldwide Core Banking migrations executed by SAP.
Leveraging our expertise, we began by executing a detailed analysis, to gain an understanding of the data volumes and quality data we would be handling. In parallel we kicked-off a series of workshops with the business owners to understand the operational processes that were being put in place. This allowed us to gain insight into their overall business transformation aspirations and to meet their requirements as part of the data cleansing and transformation stage of the migration. Following this, we then designed a migration approach within a few months, which we then began executing to enable the smooth transfer of data, on time and on budget.
The Result
We performed a highly successful migration of thousands of loans and customer profiles with no loss of data, breaches or go-live abortions. Rabobank now runs SAP Loans and is achieving a 95% STP rate meaning nearly the full loan portfolio is processed fully automated without any manual intervention during the whole lifecycle.
In early 2022, we migrated all private loan collaterals from the legacy system to SAP Collateral Management Services. Executing the migration in four tranches over four go-live weekends, in total we migrated 1,757,582 collateral agreements and 1,312,392 collateral objects, totally $1.7bn.
- Conception and definition of a strategy for data transformation and migration
- Implementation of the transformation and reconciliation of the data to be migrated
- Implementation of data migration without data loss, breaches or aborts during go-live
- Further enabling STP processing: Rabobank's loan book achieves an STP rate of over 95%.
- Rabobank cuts costs by decommissioning a legacy system
In late 2022, we signed an agreement to support Rabobank with the next phase of their Lending transformation, delivered over 2-years.
