Press release

April 21, 2005

Accenture and Banking Production Centre (BPC), the leading EFT and retail banking solutions provider and systems integrator, have announced the completion of Alfa Bank's processing centre integration into the bank's New Retail Business infrastructure. Alfa Bank's processing centre modernization was part of a large-scale project aimed at the implementation of a new branded retail branch network — Alfa Bank Express. The project was launched in 2001 and Accenture was engaged as a Prime Contractor and Systems Integrator.

Accenture team along with the Bank's specialists produced the business requirements to the products and processes of the New Retail Business, designed a centralized technology infrastructure of the New Retail Business and specified the necessary modifications of the systems to be integrated. Building on the requirements in part of modifications, the software solutions suppliers made the respective developments that were tested and put into operation under Accenture's supervision. Taking into consideration the strict timeframe of the project and the large scope of modifications Accenture engaged a selected range of Subcontractors. Throughout the project Accenture was managing and supervising the work of all subcontractors including those engaged by Alfa Bank directly.

BPC was one of the Subcontractors in Alfa Bank Express project. At the start of the project BPC was requested to elaborate a business scheme where the payment card served as a tool for accessing banking services. The concept proposed was based on the best international practices in retail banking and on the internationally approved modern technologies. The key idea of the model developed by BPC and Accenture was the integration of various delivery channels so that the client could get an on-line access to his accounts any time in any bank branch.

The following implementation of the model comprised the development of interfaces between transaction processing and card management system and Equation core banking system from Misys, the key element of the New Retail Business infrastructure. This integration allowed Alfa Bank to offer its customers — through the new branded branch network — a wide rage of innovative financial products and services almost unique on the Russian market at that period of time. Among them — "instant issue" cards, issued during the first customer's visit to the bank and comprising all features of traditional banking cards; funds transfers between the customer's accounts linked to one card and to the accounts predefined by the bank; on-line deposits; mini-statements; client authentication in the branch with the card as a universal client's ID, etc.

Development of the new forms of card based banking services inevitably brought about the need for a thorough Alfa Bank's processing system modernization. The goal was to ensure the effective interaction of the processing centre with all other components of the bank's New Retail Business infrastructure. Alfa Bank's processing centre modernization project concurrently run by BPC involved the total migration to the new processing solution — SmartVista. SmartVista Front-End and SmartVista Back-Office, the key components of the new solution, jointly support the bank's card based retail business while providing a potential for future growth and development.

"Alfa Bank Express project is not only the unique experience of international banking system implementation, it is the first case of applying the best international retail banking practices to the Russian environment and their successful localization. Now that the Russian retail financial services market is boosting the international experience of Alfa Bank Express project will be, and in some instances, has already become a driving force for a wide array of banks willing to penetrate the retail banking niche. We are certain that the successful completion of Alfa Bank Express project will open up challenging opportunities for BPC and Accenture to team up in the new projects launched by the leading Russian and overseas retail banks", said Anatoly Loginov, CEO & President, Banking Production Centre.

"As a Prime Contractor in Alfa Bank Express project, Accenture was responsible for a huge scope of work performed both by Accenture team and the engaged subcontractors. As we accepted almost all the risks that could arise in the course of project implementation, we had to be very accurate selecting Subcontractors to design, develop and implement solutions for Alfa Bank's New Retail Business. Now that the project is completed we see that it was the right decision to invite BPC to join the team. Throughout the project BPC repeatedly demonstrated that its solutions and services, as well as its project management principles, comply with the highest international standards", said Philipp Maizenberg, Senior Manager, FSI, Accenture.