Sentinel Bank & Trust turns to IPBS private banking system
Sentinel Bank and Trust Company is a member of The Colina Imperial Financial Group—the largest life and group insurer in the Bahamas. The Bank supplies a range of services to high net worth individuals, directly and through their managers and agents. These span trust administration and corporate secretarial administration services, client accounting and international private banking.
Underpinning the existing architecture there was a two-part system: one that managed banking transactions in a traditional sense, but was not integrated with the general ledger. The GL was running on a separate system that was interfaced and updated at the end of the day. This complication made for a very difficult foundation on which to build anything new, and was inefficient for existing operations in any event. Support by the existing vendor was inadequate: a simple support request could take 2-3 days, while implementation of a new feature could take months, if not years.
A new management team at Sentinel Bank & Trust inherited a set of legacy technologies that were hampering its ability to deliver value-added services to its clients. Sentinel had no client-facing internet capability, because the platform was unable to support it. With competition growing in this arena, and switching options much cheaper for clients, it was a strategic gap that needed to be filled quickly and effectively. Sentinel’s existing database was ageing and increasingly difficult to work with. There was a high risk the data would not transfer to a new system, necessitating keeping the old systems on a care and maintenance basis, or moving the data to hard copy.
As the bank was committed to growing both its trust and banking activities, including that of its investment management activities, it was essential to bring in new systems that could properly support expansion. Sentinel decided on a root and branch replacement of the existing software infrastructure with the goal of providing an adaptable, well-supported, user-friendly system that was fully compliant with the banks long-term business needs, and the requirements of regulators.
Business Benefits of IPBS to Sentinel
The IPBS solution created a fully integrated back office system. Using a “single source” data entry, the IPBS system has been designed to allow the banks professionals to use their time more effectively and efficiently. The specific efficiency benefits comprise:-
The development team, as specialists in the local market, was able to quickly respond to the day to day challenges of implementation and ongoing business development. The system updates in real-time. Support is now 24/7.
The internet capability allows Sentinel to deliver online account access in consolidated form, satisfying an increasing demand from HNWI and their agents to view their entire portfolio, not just their cash position, complete with transaction history. Embedded with this data access is the means to administer accordingly and execute transactions wherever in the world the client finds himself.
“IPBS has allowed us to reposition the bank in the eyes of our clients with an up-to-date, scalable system that is fully compliant and easy for us to modify in light of changing customer requirements for managing their money using the internet,” said Sentinel President Richard Evans.
The cost of keeping the legacy systems or the prospect of committing that historic account data to hard copy for a number of years was avoided. IPBS developers were able to retrieve the entire transaction history from the existing database, comprising up to 12 years of records. This was achieved in spite of awkward protocols in use in the legacy system, and that it had not been constructed using English.
“There was considerable relief to know that, along with all the benefits of installing IPBS, we would be fully relieved of the costs and operational issues of maintaining the legacy system, while continuing to have access to that data through the new IPBS solution,” said Richard Evans.
Sentinel now also has fully compliant systems for Anti-Money Laundering (AML) and KnowYour-Customer (KYC) initiatives.
“The Sentinel installation presented a complex set of challenges, from the back office to internet service support, for which the IPBS systems are specifically designed. The need to completely migrate all the legacy data reflects the flexibility of the IPBS approach and the creativity of the development team,” said Bruce Raine, IPBS Founder and President.
Sentinel Bank opted for six of IPBS’s seven module private banking system. These included:-
Each banking application covers the full gamut of transactional activities. The suite is a fully integrated, internet enabled, multiple entity, multi-currency accounting and management information system that provide all of the front, middle, and back office support services required by an international private bank, trust company, mutual fund administrator or other wealth management professional.
There is full compliance with FTRA rules on quantitative evaluation of KYC/AML risk profile, while connecting scoring and aggregating key client associations and relationships. A risk point allocation tool is fully manipuable by the user. There is full 128 bit encryption, and a seamless local interface with World Compliance the global standards organization for list monitoring.
The bank’s end client can access a total information package driven either from the Cash Account Activity or the Portfolio. The unique reporting engine provides high level summary information with transaction specific multi-level drill down which provides all relevant detail on the particular transaction. IPBS / Remote Client Access is designed to access the growing number of public and private domain Web Services providers for real time market information and pricing.