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KBC Group invests in digital transformation in Central Europe

KBC Group, one of the largest bank-insurers in Europe, is set to implement an upgrade of its core banking systems in Slovakia and Hungary, with Deloitte serving as system integrator for its T24 implementation at ČSOB in Slovakia and K&H Bank in Hungary.

K&H in Hungary will be one of the banks involved in the core banking system upgrade

The implementation is a key element of the five-year digital strategy adopted by the bankʼs leadership, according to a press release sent to the Budapest Business Journal. A team of experts from Deloitte’s Temenos Center of Excellence, in cooperation with local teams, is responsible for the end-to-end system integration. The agreement, concluded by KBC and Deloitte, was signed at the end of March.

KBC Group serves over 11 million customers and employs 42,000 people in its strategic markets, which include Belgium, the Czech Republic, Slovakia, Hungary, Bulgaria and Ireland. Deloitte is an official partner of Temenos, with a distinguished record of T24 implementations around the globe, notes the press release.

"To enable future business transformation and keep compliance with all regulations, we are implementing T24 core banking systems at both K&H and ČSOB," says Willem Hueting, KBCʼs senior general manager for international markets. "This change goes along with our five-year Digital Transformation plan, to ensure that our clients get the best out of their banking experience."

"The first phase of KBC’s Digital Transformation includes the core banking system replacement and will last two years," according to ČSOB CEO Daniel Kollár. "One of the initiative’s key goals is full digitization of ČSOB, which will provide our clients with access to modern, innovative banking services enabled by digital technologies."

"Big challenges lead to bigger improvements," stresses K&H CEO David Moucheron. "Implementation of a modern, integrated, open-core banking platform like T24 will allow K&H to offer further innovative products and smooth, easy and convenient services to its customers with quickly changing needs on the Hungarian market. To implement Temenos T24, we rely on Deloitte and its Center of Excellence, whose team has strong core banking capabilities."

"The banks recognize the need to change their current operating ecosystem in order to cope with demands of the market and customer base regarding increased commercial agility and a good go-to-market strategy," observes Warren Hatton-Jones, Deloitteʼs lead engagement partner. "Simplification and efficiency of operating models and optimization of digital channels is a must. Deloitte’s main focus is to deliver this deep-to-the-core transformation smoothly and with the smallest possible distortion to KBC’s clients."