Deutsche Telekom wins €100mn+ deal to manage Sparda-Bank's digitisation
Deutsche Telekom has agreed a seven-year contract worth over €100mn to oversee the digitisation of German bank Sparda-Bank.
Through its T-Systems IT services subsidiary, Deutsche Telekom will take over the IT infrastructure of Sparda's banks, linking mainframes and landscapes to state-of-the-art data centres in Germany.
One of the biggest deals to have been brokered in the market in recent months, the contract - valued in the 'mid three-digit million euro' range - could be extended to last ten years if the partnership flourishes.
"The Sparda Group's win demonstrates that clients continue to need help in managing their complex IT infrastructures," said Adel Al-Saleh, T-Systems CEO. "As a digitisation partner, we help our clients drive more productivity and efficiency in their IT infrastructures, as we help them get on the journey of digitisation."
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Sparda-Bank's CEO Burkhard Kintscher added: "The IT outsourcing contract with T-Systems offers potential cost savings in the triple-digit million euro range and we are thus taking the next consistent step in our on-going digitization strategy. We made a conscious decision in favor of T-Systems because we value the partnership-based cooperation and because the company also enjoys an excellent reputation in the market with regard to compliance and IT security."
In addition to IT infrastructure services, T-Systems will also provide the network infrastructure services for the entire Sparda Group. These include the secure connection of the approximately 400 branches of the 12 regional cooperative banks of the Sparda Group to the computer centres, the local networks at the locations of the Sparda banks as well as the call centre technology and the workstation systems of the approximately 6,000 employees.
Mambu and the UAE’s digital banking journey
Miljan Stamenkovic enjoys the dynamic and constantly evolving world of fintech banking. In his current role as General Manager for MENA for Mambu, Stamenkovic sees opportunity in abundance.
“When I joined Mambu with my team in 2019, we came with the fintech, entrepreneurial mindset and DNA to build and grow Mambu’s business in the MENA (Middle East and North Africa) region. Before 2019, the region used to remind me of a desert, at least in terms of cloud service providers and cloud adoption. But this past year has been a wave of progress.” In November 2020, Mambu opened a new office in Abu Dhabi Global Market, as the region has quickly become a key market for Mambu.
He explains, “There are data protection laws. There are cybersecurity regulations and most importantly, a variety of major tier one cloud service providers that are available. But what particularly excites me here at Mambu is the opportunity to rethink business models together with our clients and really bring them to life. This is where I saw a great fit with Mambu and its composable philosophy.”
Creating a neobank and challenger bank ecosystem has been his ultimate goal. “In my opinion, this actually creates a unique opportunity to partner with some of the best fintechs in the region and build the region’s first and true challenger and neobanks.”
Stamenkovic credits Mambu’s partnership with Banque Saudi Fransi (BSF) for the success that has driven the bank forward in the region. “When I think about all the challenger and neobanks that have grown massively over the past decade,there is one common denominator for all these new initiatives. I would say they really operate like a tech company rather than a bank. - BSF is leading this approach in Saudi Arabia.”
He continues, “This brings a competitive advantage for tech companies. These platforms are each managed individually but can be swapped in and out. And when put together, they actually form the backbone of a company's technology capability. This is why tech companies and banks like BSF actually can get products to the market a hundred times faster than their more incumbent peers.”
The implementation, he stresses, is an evolving process, where each component is trialled and checked and swapped in and out according to its effectiveness. But it’s down to the dynamism of the team on the project to initiate these changes. “As critical as technology is to digital transformation, the DNA of people working on these initiatives is the key to success. At BSF they have a true startup and entrepreneurial mentality.”
He explains that Mambu is helping BSF deliver an entire new banking experience while providing soft core banking services hosted, in this case in Saudi Arabia. “Mambu sits at the heart of BSF's new challenger bank and its technology stack. So, this actually enables BSF to take an entirely cloud native approach, having Mambu at the centre of its ‘Digital Engine’.”
Stamenkovic points out, “Mambu enables banking like a modern tech company. Banks used to be built to last, but today they need to be built to change. And that's what we're enabling here.”