Customer Snapshot: Overview
260 bank branches, and 820 ATM's
With millions of customers, Banco Galicia is a top private bank for local capital in Argentina. Given the country’s rocky economic environment since the late 1990s, managing risk to protect their customers is one of the bank’s primary objectives. To ensure that they had a robust and secure IT infrastructure, the bank embarked on a core IT transformation in partnership with SAP.
US$1.6 billion (2012)
Number of Employees
Line of Business
Buenos Aires, Argentina
SAP Consulting organization
SAP Active Global Support, SAP Digital Business Services (DBS), SAP Consulting, SAP Enterprise Portal, SAP ERP, SAP Process Integration, SAP Risk Management, SAP solutions for governance, risk, and compliance (GRC), SAP Supply Chain Management (SAP SCM)
Customer Snapshot: History
A Trusted Institution in Rocky Economic Times
Argentinians are no strangers to economic insecurity. The Argentinian economic crisis of the late 1990s came to a head in 2001 when a run on the banks hit the country like a tidal wave. But since 1905 Banco Galicia has been providing safe and secure banking services to their customers. It is no surprise that they were able to fully recover in just two years and maintain their position as one of the country’s largest and most stable financial institutions.
Customer Snapshot: Business Model
As a universal bank, Banco Galicia offers a broad range of financial services to approximately 7 million individual and business customers. Operating as one of the largest and most diversified distribution networks in the Argentine private financial sector, they have approximately 650 branches and electronic banking centers across the group.
Customer Snapshot: Success Strategy
Fostering Economic Success and Social Responsibility
Banco Galicia’s goal is to be the best private bank in Argentina. That means delivering positive economic results that take into consideration the social and environmental impact of everything they do. Their mission to enhance the success of customers and shareholders through financial services is grounded in the principles of transparency, ethics, loyalty, prudence, and responsibility.
Legacy IT systems were also complicating risk management for Banco Galicia. Cash control, for example, had to be handled manually using spreadsheets, which meant that systems could only be updated 24 to 48 hours after cash had moved from one place to another. Information on the cash available at branches and in vaults and ATMs was often inaccurate, exposing the bank to unnecessary transportation and penalties. Plus, errors in the data on the bank’s total cash balance complicated planning activities and collections.
Banco Galicia serves a very large client base – from individuals to large corporations, each with specific requirements – and our existing IT systems would not let us differentiate our approach to each client. For instance, we needed to manage our customers’ accounts in different currencies – namely pesos, dollars and euros – and offer new services in the most efficient way and at the lowest possible cost. Trapped by this IT infrastructure, the challenge was to catch up with the requirements of a 20th century bank as well as the world’s major banking corporations.– Diego Revello, ITC Manager, Banco Galicia.
If Banco Galicia was to achieve the goal of becoming the top bank for technological innovation in Argentina and Latin America, they knew they needed a world-class technology partner. After carefully researching multiple vendors, Banco Galicia chose SAP to help transform their core banking systems, beginning with deposits, loans, collaterals, and the client database.
We decided on SAP instead of other vendors because of reputation, importance, and a sense of the company. SAP was that company.– Eduardo Agra, CIO, Banco Galicia
Enter SAP: The SAP Experience
Easing the Transformation Experience
Banco Galicia worked hand-in-hand with the SAP Services organization to make its core banking transformation goal a reality. The SAP team had the IT and industry expertise to mitigate the risks of such a large-scale change in IT infrastructure and to ease the transition to help ensure minimal business impact and smooth adoption for users. Plus the local team was familiar with the intricacies of the Argentinian banking system and could put Banco Galicia in touch with the right people on the development team.
If I had to summarize the three main characteristics of the SAP Services organization, I would say it is the quality of the people and the services they provide, their dedication, and their commitment to the success of our project.– Eduardo Agra, CIO, Banco Galicia
Better Business: Benefits
Banco Galicia quickly began realizing the benefits of their currency management and optimization solution. Cash transportation was optimized, helping reduce costs and guaranteeing that cash was available when and where it was needed. A centralized view of historical movement also made it possible to forecast and organize logistics based on the needs of the bank as a whole.
Now, new products and services can be brought to market at speeds never before imaginable. An outstanding example is the rollout of Projecto Galaxia, which moved all of Banco Galicia’s savings accounts to the new core-banking system from SAP. Just days before the move, the Central Bank of Argentina announced a new requirement involving U.S. dollar savings accounts that differed sharply from existing Central Bank mandates. A decision needed to be made almost immediately on whether or not to incorporate functionality to meet the new requirements. Banco Galicia and the SAP Services team went for it, making Banco Galicia the only bank in the country that was immediately able to comply with the new regulations – solidifying its reputation in Argentina as a leading bank in cutting-edge technology.
One of the major benefits we are seeing now is that the bank is really ready to go to market with new products in a very, very short time – something that was really unbelievable before.– Eduardo Agra, CIO, Banco Galicia
Better Business: Run Simple
Ongoing Optimization and Innovation
Investing in a long term plan for the future has not only increased Banco Galicia’s agility to fulfill business requirements, it has also positioned the bank to begin fulfilling their strategic vision of being hailed as the region’s finest financial institution. Banco Galicia continues to streamline the cash management processes and is continually on the cutting edge of technological innovations to improve customer service.
The role SAP plays is really strategic. They are in our heart – they are at the core of our application strategy.– Eduardo Agra, CIO, Banco Galicia
The SAP for Banking solution will allow us to plan, design, and launch new services for our customers, and improve the existing ones in a way that was not previously possible.– Diego Revello, ITC Manager, Banco Galicia