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Romania’s digital transformation & a culture of trust

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OTP Bank Romania’s digital transformation & a culture of trust Interface magazine speaks to Constantin Mares, Executive Director of OTP Bank Romania, regarding the bank’s massive digital transformation

WRI T T EN BY PRODUCED BY

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Andr ew Woods Al ex P ag e

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A

A digital transformation

company to become truly free, flexible

is as much about altering

and agile in its operations, there needs

the mindset and actions of

to be a culture of trust at every level of

humans as it is the implementation of new digital infrastructure, software and

the organisation.

Constantin Mares is Executive Director

operations. A workforce, and a work-

of OTP Bank Romania, responsible

ing culture, that embraces change and

for the IT, PMO and Transformation

harnesses its potential, is integral to any

Offices. Constantin is an experienced

digital transformation. To create a fertile

technology leader within the banking

environment in which to grow a busi-

sector, having worked with ING among

ness and its digital operations requires

others. He is a firm believer that an

a bold and creative approach. For a

engaged and motivated workforce,

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one that is aligned, and committed

especially big projects constantly

to a digitally-lead working strategy, is

delayed, and over budget,” he explains

key to unlocking the potential of any

from his Bucharest office. “We soon real-

forward-thinking enterprise.

ised that if we wanted to be success-

When Constantin took on his current

ful – and we desperately want to be

position at OTP, his first assignment

successful – we had to break the silos

was to strengthen the IT function ahead

and have a better collaboration between

of a major transformation programme.

the business and the support units at

Increasingly, OTP was finding that the

the back. We had to bring faster new

standard waterfall methodology was

features and products for our clients, to

holding the bank back from realis-

be closer to their needs so our projects

ing its full potential. “We were having

would create value for them faster.”

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One of the first major challenges facing Constantin was the establishment of a team that could help deliver the transformation. At that moment, the whole IT department consisted of around 30 people. But the need for change was there because of changes in the market, changes in the banking regulations as well as the demands of the IT department. The colleagues from the team were high-calibre professionals, highly skilled and experienced, but they were overwhelmed by the numerous projects and activities. They needed to receive help at similar level of expertise.”

Constantin went to work establishing a management team of 11 to cover all units consisting of business & process analysts, programmers & workflow developers, data analysts, project managers, process analysts, DBAs,

notoriously difficult. “To hire very skilled

network and infrastructure special-

people was seen by the CEO as mission

ists. “United as a management team

impossible,” Constantin explains.

we were able to overcome the inher-

“However, we enjoyed very good

ent difficulties of any transformations or

cooperation with our HR partners who

turn-arounds. Moreover, we were crazy

went to work on the job descriptions

enough to still enjoy our roller-coaster

and our advertising campaigns, which

adventure.” OTP then started to recruit

were very simple and straightforward,

for new people able to deliver change

making it very clear what we needed.

to a high level of expectation.

We highlighted the challenge and the

IT recruitment in Romania is

ambitions we had ahead of us as well

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as the exciting projects.” Within a year,

arrivals understand the complex new

Constantin already doubled the team

environment around us. And of course,

and now, nearly two years on, the team

the new people were avid to learn and

has tripled in size.

very eager to contribute to the new

Recruitment is hard enough, but often

environment.”

the biggest challenge is the onboarding and integration of these new people

A culture of trust

into a rapidly changing workplace. “The

The working culture at OTP initiated a

core of the team was a minority all of

vibe of collaboration, fostering a fail-

the sudden,” he says. “But our managers

fast-to-succeed strategy. “We wanted to

and senior colleagues helped the new

be open, to ask for feedback, to allow 7

We deliver solutions that work

“With the help of SMP Solutions we were able to deliver the possibility of using mobile token application and create higher customer satisfaction.”

– Constantin Mares, OTP Bank

At SMP Solutions, we have been committed to providing high-quality and efficient solutions for challenges in IT, banking and security technology for over 30 years. Our cooperation with OTP Bank Romania is a great example of helping our customers along their digital journey by providing them innovative solutions. We are proud that we could take part in enabling the Bank to meet their PSD2 SCA requirements by introducing a mobile token application for their customers. We are looking forward to helping our key client make their customer service more efficient by providing a digital queueing system and CRM solution for their branch network.

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I N A P O S T- PA N DEMIC W CONTACT USO R L D

people to make mistakes and try new

engaged and involved. We can now

things,” Constantin explains. “We were

achieve results faster and it’s more fun

able to instil this trust in our people. We

and fulfilling for us.”

become a place where people can transparently discuss with their managers

The launch of Apollo

about issues or barriers preventing them

“Apollo program was two-fold,” Constantin

to achieve our objectives. I think this was

explains. “First, we wanted to double our

one of the key success factors in achiev-

market share and grow significantly in

ing this transformation.”

our business segments. The other side

A new 360-degree feedback system

was a transformational view of the way

was introduced with staff being asked

it was working and adopting practices

to address what they should start doing,

from Agile methodologies. That’s why

what they should stop doing, and what

we formed Apollo, where we addressed

they should continue doing. According

the business efficiency and the sales

to Constantin, this method of giving and

processes while initiating the visualis-

receiving feedback was instrumental

ation aspect of the bank. We wanted

in creating and strengthening that trust

to be more present and closer to our

base, essential in any successful organ-

online clients to create a better customer

isation. “When you have this kind of

experience.”

trust, people are more comfortable to try

Apollo saw OTP moving into a unified

things, to make decisions, to be great,”

digital strategy, freeing the company

he enthuses. “Because people like to be

up from traditional silos and outmoded

great. People like to be successful and

ways of thinking and working. A new

to achieve. So, we started to empower

spirit of collaboration linked the differ-

the team more. Instead of managers

ent departments as more and more

telling them what to do they would now

people bought into the new joined-up

tell us what to do. We would no longer

approach. Constantin and his team

impose from above regarding the best

could then look into procuring the tools

way for them to go about things. This

and software needed to realise their

completely changed our priorities and

new ambitions. “First of all, we looked at

people are now much more enthusi-

the tools we needed in IT to be able to

astic because they feel appreciated,

secure this growth. We invested heavily w w w.t h e i n t e r f a c e . n e t

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in infrastructure and upgraded our core banking system, and changed the set-up, the operating system and database system (end-of-day and end-ofmonth processes run now 6 times faster than before). We replaced more than 1,400 user workstations. We migrated our data center into a tier 4 professional data center with redundant and dual-powered instances of servers, storage, network links and power cooling equipment. Then we upgraded the communication infrastructure (including the remote access capabilities) and security infrastructure. We started with our own processes such as the Demand Management Process and made the decision to adopt JIRA. Many local branches received technological refits, bringing them up to date with modern banking.

The organization was enhanced created new functions for test management, IT relationship management, IT asset and contract management, RPA developers or BPM developers. To make sure this rapid growth is sustainable on long run, we created an elite squad of IT architects. We also created a Transformation Office staffed with Scrum masters, Lean 6 Sigma Black Belts and Agile coaches.�

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These organizational and techno-

The goal of the transformation was

logical advancements were quickly

to significantly improve productivity

embraced and highly appreciated by

and efficiency of the customer-facing

business departments. They facilitated

employees by consolidating applica-

for much better understanding between

tions, automating processes and visual-

departments with greater transparency

ising customer data and insight. This

when it came to requests for invest-

became our second transformation

ment. “They (business groups) stopped

pillar, after strengthening the IT infra-

challenging every proposal or solution

structure. We had a wide range of busi-

they received from IT,” says Constantin.

ness needs that it wanted to meet with

“We went from business having to ask

a help of a next-generation technology.

for an application, to an understanding

We evaluated numerous software solu-

of the business need and the solution

tions available on the market and opted

proposed. They started to trust us to

for Creatio as the best fit for their busi-

provide them with the solution. We went

ness. The combination of the system’s

from the status of service provider to

low code, process automation, and CRM

status of trusted business partner.”

Historically, sales and front office staff faced a myriad of applications that they had to know and understand just to engage with the customer and so this was duly shelved in favour of a more linear approach to reduce the time spent in back-office activities, when they could be more customer facing.

“This was because our front offices were engaged in redundant activities, or non-value-added activities,” Constantin explains.

“Our growth strategy required a new set of tools and a different approach.

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“Our managers and senior colleagues did a great job in on boarding the new colleagues, helping them understand the complex new environment around us. And of course, the new people were avid to learn and very eager to contribute to the new environment” — C O N S TA N T I N M A R E S , EXECUTIVE DIRECTOR, OTP BANK ROMANIA

technology ticked all boxes for us.

The core project task was focused on streamlining a wide range of front-office and middle-offices processes. Since the scope was extensive, the delivery was divided into several stages. The first delivery stage covered some of the key business needs such as creating a 360-degree customer profile, setting up product catalogue, optimising opportunity management processes, and automating consultation processes.

Delivery 2 was dedicated to automating the processes related to current account opening for individuals. Upon delivery 3 phase, the system was integrated with Enterprise Content Management software, which allowed for unified document management.

Creatio solutions helped us deliver the large-scale digital transformation project effectively. The new approach allowed the project implementation team to test new functionality, gather valuable feedback,

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U N D E R S TA N D I N G E Q A N D H I R I N G F O R I T I N A P O S T- PA N D E M I C W O R L D

and make needed changes at any

manages the entire customer facing and

stage. Thanks to the intuitiveness of the

back office workflows that we need for

user interface and the ease-of-use of

a smooth onboarding experience. And

Creatio’s solutions, the bank was able to

we are planning to implement new digi-

achieve a high level of user adoption at

tal customer journeys using FintechOS

an accelerated pace. In addition to that,

technology in the next months and years

the bank has embraced low-code devel-

to accelerate digital transformation

opment approach. Low-code technol-

success.

ogy allows for modifying the processes

“For our customers, first impressions

quickly and adjusting them to the

count, so we were very excited to roll

ever-changing business needs without

out FintechOS’s onboarding solution.

heavy reliance on deep technical skills.

And, hitting the market in such a short

The third transformation pillar was, according to Constantin, the most

time is a great achievement.

It also helped implement an enterprise

important. The move from traditional

service bus (ESB), which in terms of IT

bricks and mortar banking to a more

architecture, is a major achievement,”

digitalized customer journey was now

says Constantin. The ESB has given

seen as a standard requirement for OTP

OTP much more agility and flexibility

and the team started to think about how

with regards to communication between

they could enhance each layer of OTP

applications and departments.

for its customers. “Having a solid base

Another example is the enhance-

for growth and having internal ineffi-

ment of securities investment services

ciencies sorted out, it was time to take

for private banking and affluent bank-

care about our customers and improve

ing customers. We moved ahead and

their experience starting with their

selected Dorsum, Hungarian solution

very first step: onboarding into OTP.

provider and implemented its advisory

FintechOS’ capabilities turned out to

facing solution, the Wealth Management

be well-suited for our business needs,

Platform. Dorsum designed the func-

supporting the deployment of an auto-

tional scope of the platform together

mated, end-to-end digital onboarding

with the private and affluent business

customer journey very fast. The new

areas. In line with business and oper-

solution delivers and automatically

ational goals of the Bank, functional 15

capabilities of the new digital solution

measurable.

help the advisors to have a real-time

We continuously simplified our star

360 degrees view of the client port-

products and we were among the first

folios, detailed overview of transac-

banks in Romania to introduce new

tion history, portfolio performance and

payment methods: ApplePay and OTPay

investment costs (fees paid), to seam-

for Android platform. We also launched

lessly communicate with the clients, to

new simplified versions of Internet and

build tailor-made advisory and client

mobile banking to allow our customers a

meeting workflow. Of course, all of

smoother interaction with OTP.

these fully in line with the regulatory requirements, such as eg. MiFID2.

The data warehouse

The new digital solution is able to

The fourth pillar of transformation saw

improve the quality and accuracy of

the installation of a new data-driven

the advice, make the advisory and

‘backbone’. OTP invested in a data ware-

client meeting workflow faster and the

house system and started to implement

KPIs and effectiveness of the advisors

its visualisation by using data in making

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info@creatio.com

UK: +44 20 3384 0040

decisions. “. We believe and I believe that

deliver in time new hardware tokens to

in this century, using data is key. We need

our customers and we have created the

to make fast and informed decisions.

possibility of using mobile token appli-

We created a single version of truth,

cation in order to move towards to digi-

augmenting all the data from all different

tal transformation and create higher

systems into one warehouse. We also

customer satisfaction.”

“As SMP Solutions is committed in digi-

invested in a visualization layer. We now use Tableau when presenting the data to

tal solutions, we will ensure together an

the organisation.”

intelligent branch queueing and ticketing system in order to optimise the wait-

Success through partnerships

ing time and the personal interactions

With a project of this magnitude and

at the branches,” Constantin enthuses.

complexity, partners are essential to

“The new solution will assist our custom-

OTP’s success, something Constantin is

ers to reserve timeslots remotely for

keen to stress. OTP decided to rely on

personal appointments, while serving

core strengths of such partners imple-

their convenience we will be able to

menting new EU directives of PDS2 SCA

ensure their safety more effectively

in 2019. We created a strong coopera-

during the period of COVID-19.”

tion between OTP and SMP Solutions

The value of a great partnership

that resulted in an adequate solution

really hit home earlier this year when

of providing two-factor authentication

lockdown struck in Romania. OTP’s

method for our customers. With the

work with Dell Technologies and SMP

help of SMP Solutions we were able to

Solutions over the previous two years

“We were able to instil this trust in our people.

I think this was one of the key success factors in achieving this transformation” — C O N S TA N T I N M A R E S , EXECUTIVE DIRECTOR, OTP BANK ROMANIA

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In this picture, from left to right: Nicolae Doca, Daniel Lazar, Isabela Ibraim, Liviu Dragomir, Constantin Mares, Adrian Circel, Alina Donciu, Cristian Marcu, Ciprian Zane Missing from picture: Dragos Serban, Catalin Ileana, Adam Salomon, Florin Gologan, Camelia Drenscu, Bogdan Firican, Ioana Nedelcu, Irina Popovici, Andreea Plesa, Miruna Dinu

had placed the bank in a compara-

Constantin explains. “The fact that we

tively comfortable position when the

achieved this in a very short time frame

pandemic struck with the digital back-

– in two weeks we had 97% of the

bone of the bank continuing to oper-

people from headquarters working from

ate as if they were back in the office.

home – is also attributable to our part-

“On the infrastructure side we like SMP

ners from Dell Technologies and SMP

Solutions, which is a partner of Dell

Solutions. They immediately understood

Technologies in this infrastructure area,”

what was going on. They were standing

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next to us and helped us in these crazy

how the mindset and people’s behav-

times.”

iour adapted so quickly when we went

In terms of how OTP addressed or

through a crisis period.” It was felt by

reacted to the pandemic, are there any

some at OTP that working from home, in

learnings that have happened during

a paperless environment just wouldn’t

this time that Constantin might take

work. “However, in a matter of weeks,

forward with him, post COVID? “Yeah, I

guess what? Business functions were

would say it was very interesting to see

increasing following a decrease in 19

month three. By July, we were back on track and even above the levels before the pandemic. We are still working with no paper, and we are still working from home and I would say this is an important take away. I mean every crisis has opportunities and I think this was the opportunity resulting from this particular crisis.”

Another key takeaway of this period for Constantin is the new level of understanding between managers and their teams. Again, it goes back to this culture of trust. “I think it’s very important that the management comes to the people, understands their problems and takes decisions to support the teams,” says Constantin. “The management team cares about the health and the wellbeing of the people and so provided some specialised client psychologists for our people should they need to call such a person.”

Bolstered by a new digital backbone and organisational structure OTP is now able to research and develop new products at speed, including the recent chatbot. “In three weeks, we launched this chatbot with end-to-end integrations from the website, in which the customer could go through the process

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in a completely automated way, rather

mindset shift also applied to our busi-

than interacting with a call centre oper-

ness colleagues would not even dare to

ator. This channel was used by 55% of

believe that the implementation could

the clients asking for a debt release, a

be done in such a short time frame nor

significant number. We were not esti-

that such an implementation would have

mating such a big success or such a

such a big success for the client.�

big impact for a newly launched chan-

OTP is now a much more agile and

nel, but it was very easily embraced by

flexible enterprise, fuelled by an intox-

the customer (having more than 60,000

icating spirit of collaboration, creating

interactions in less 3 months). This

new products at speed and seamlessly

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attracting and onboarding new clients

once. We have so many things to do that

through its state-of-the-art customer

it is very fulfilling for me and something

journey. It’s clearly an environment that

I’m enjoying a lot. To see this change in

has engaged Constantin. “To work in

the culture of the organisation, to see

such a rapidly growing environment and

people more open, more vibrant and

to be able to implement transforma-

happier at work is a good accomplish-

tions on so many levels is very fulfilling

ment and a great motivation for me and

for me, because I get to apply all my

my work at OTP.”

management experience, all my banking experience, and people skills all at

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www.otpbank.ro