Hampshire Trust Bank Brochure 2019

Introducing API infrastructure to enhance human interaction

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Hampshire Trust Bank: open banking through API infrastructure WRITTEN BY

SOPHIE CHAPMAN PRODUCED BY

JAMES PEPPER

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HAMPSHIRE TRUST BANK

With its mantra of ‘excellence through specialism’, SME-focused Hampshire Trust Bank is undergoing a digital transformation journey to improve efficiency, collaborate with fintechs and enhance the customer and broker experience

H

ampshire Trust Bank (HTB) is a specialist bank staffed by experts focused on helping UK businesses realise their ambitions. The bank’s

primary operations are development finance and specialist mortgages, and specialist business finance, focusing 15

on wholesale, block-discounting, classic cars and other asset finance categories. HTB also provides award-winning savings accounts to individuals and businesses. Russ Fitzgerald, Chief Information Officer (CIO) at HTB, discusses the digital evolution of the bank: “Although the bank was initially established back in the 1970s in Hampshire it was acquired by private equity investors in 2014.

Soon after, it moved to London and has been successfully growing its business since, moving to its current Bishopsgate headquarters in 2017.”

Fitzgerald joined HTB in April last year as an IT Director and soon progressed to CIO in September the following year. “I was introduced to HTB having spent the last 20 years or so working for large financial institutions. After I left my previous role I felt less attracted to the larger institutions and wanted to work for a smaller bank where I could play a greater part in defining and delivering the

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HAMPSHIRE TRUST BANK

“ We’re not on a digital journey to replace human interaction – this is a digital journey that enhances the human interaction” — Russ Fitzgerald, CIO, Hampshire Trust Bank

also provide a first-rate service, delivering dynamic support for smaller banks.

They’re less rigid than mainstream suppliers, which works particularly well for us and suits our agile operating style.”

When Fitzgerald joined HTB, he established a strategy for the board and prioritised plans for technology and infrastructure development. The bank introduced an application program-

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strategy,” he says. “HTB has turned

ming interface (API) infrastructure as

out to be everything that I’d hoped for.”

part of its high-level architecture, which

The CIO’s role involves managing IT,

enables data services and collaboration

security, business transformation, facili-

capabilities. This infrastructure involves

ties, operational resilience and supplier

consuming data services to improve

management.

operational efficiency, credit risk pro-

With an impressive growth trajectory

cesses, and customer and broker expe-

in terms of staff and revenue, the bank

rience. With this infrastructure in place,

targeted digital as the key to its expan-

the bank can maximise the potential for

sion. “In line with our growth and to sup-

fintech collaboration opportunities.

port this development, the next stage

“Integral to our strategy was the

of our transformation relied heavily on

introduction low-code tools into HTB.

technology. This initiative launched our

Having assessed the marketplace, we

digital transformation journey,” says

forged a strategic partnership with

Fitzgerald. “Fortunately, the bank was

MatsSoft (Netcall) to use their low-code

built on robust foundations – this is a

environment to develop workflow and

credit to those who established the

front-end integration with data and

business in 2014. It runs on a core bank-

services, such as Phoebus which can

ing platform called Phoebus, which

help improve operational efficiency and

provides all the services the bank has

underwriting capabilities,” he adds. HTB

needed to date. The team at Phoebus

found that MatsSoft (Netcall) enabled

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E XE CU T I VE PRO FI LE

Russ Fitzgerald Russ leads Hampshire Trust Bank’s Information Technology, Information Security, Business Change, Business Intelligence, Facilities Management and Process Improvement capabilities. He has over 20 years’ experience in IT and business change as a leader of operational and change capabilities.

Previously he has performed roles with Nationwide Building Society, Lloyds Banking Group and The Royal Bank of Scotland and has undertaken key consulting assignments both as an independent and working with major Consulting firms.

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Market-leading technology and proven expertise.

Why settle for less?

As a market-leading provider of technologies for challenger banks, building societies, lenders and third party servicers, Phoebus Software Limited (PSL) provides optimum operational efficiencies to over 25 clients in the UK & Ireland. Our clients range from Tier 1 institutions to smaller scale operations and start-ups.

Our ethos is about creating a true working partnership that delivers success. We believe that the initial implementation is not the only part of a relationship where our clients want to be highly satisfied; we believe in delivering exceptional client engagement throughout the full life cycle of the relationship with our clients.

With over 30 years’ experience, PSL is a genuine business enabler that enhances and automates originations and servicing activities for lenders and deposit takers in both retail and commercial financial services companies. Over £50 billion of assets are managed on behalf of over 100 companies on the Phoebus servicing solution, administering products such as residential and

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commercial lending, equity release, development finance, bridging and unsecured lending. In addition, a full range of savings products are catered for across retail and commercial clients.

Compliant Open Banking API’s and an integrated workflow solution deliver automation of any lending or savings process thus optimising efficiencies and providing ROI. In addition to enabling multi-channel originations across multiple lending and savings products, Phoebus provides a highly automated primary and special servicing solution.

Modules are available to support areas such as securitisation, syndication / sub-participation and portfolio migrations. An integrated General Ledger and inherent double entry principles ensure complete financial integrity of all accounts administered on the system.

Work with PSL and you’ll be able to drive your business forward using a highly automated solution, delivered by an experienced team focused on delivering solutions that are proven to meet your needs.

We know our systems, We know your business When you hear the name Phoebus Software, it is generally associated with reliability, robustness and experience. This is because for over 30 years, Phoebus Software Limited (PSL) has been at the heart of supporting the banking and lending sectors by providing mission critical platforms, on which today are serviced over £50 billion of varying asset types in Sterling and Euros.

Today, we continue to see the immergence of varying digital solutions especially in the challenger bank and lending sectors. The launch of an array of new Fintech providers has created real diversification in the marketplace with suppliers looking for their own specific USPs, especially in the area of the user interface (UI). Users today are labelled in many ways whether they be either Generations X or Z, the iGeneration or Millennials, but they have one thing in common – they expect digitised efficiencies with a look and feel they can relate through their personal online interactions in areas such as gaming.

Open Banking is now a major driver in the banking sector and software providers are required to deliver to the requirements of this exciting opportunity. So how does Phoebus fit in with providing such solutions in this new digitised age?

The balance the industry needs to find is in the area of innovation verses the requirements of a highly regulated environment. For a software supplier such as Phoebus Software Limited, this provides opportunity as through implementing Phoebus, banks can build their foundations on a proven, compliant and scalable platform, and then opt to use whatever technologies they require (whether Phoebus or otherwise) to deliver the customer experience they want using compliant Phoebus APIs. Take Hampshire Trust Bank (HTB) as an example.

Proving PSL’s partnership approach to client delivery, the relationship between the two organisations actually dates back over thirty years when the Phoebus solution was developed and implemented to run Heritable Bank’s full banking operations. Heritable Bank was a multi-currency, multi-product merchant

bank and key individuals within its management team became the management team that took over Hampshire Trust Bank in 2014 using PE backing. As a previously trusted partner that supported all of HTB’s day 1 product and distribution requirements, it was a natural choice for Phoebus to be selected as the platform to provide HTB’s functionality in these areas.

Neil Dyke, CTO at Phoebus Software comments, “we have various specialist banking clients and HTB in particular is one with evolving, forward thinking requirements that means that Phoebus needs to be able to support various digital solutions for them.

Working with HTB allows us to ensure that our core solution supports the digital requirements of a modern bank such as HTB, whilst supporting mission critical areas such as financial and regulatory requirements which are core to the Phoebus platform”.

“What we have delivered to many clients now is a range of APIs allowing the 2-way movement of data between Phoebus and other solutions required as part of a technology stack, whether that be mobile applications, Phoebus developed, or 3rd party digital originations platforms or more specialist solutions such as treasury providers, valuation companies, etc. This approach fits in with HTB’s and other clients future strategies which we regularly review with them”.

Richard Pike, sales and marketing director at Phoebus Software adds, “the market requires flexibility and we have built our digital strategy around this.

There are highly aspirational innovative banks out there that have launched having gone down the full system development build route that will undoubtedly come to the conclusion, probably driven at a point of scale, that a more robust core engine such as Phoebus should be used to ensure financial integrity and compliant activities. Customer facing innovation can continue to be developed in areas such as UI and UX by these organisations which can easily be integrated via Phoebus APIs. Our experience of working with such institutions in critical areas such as migration means PSL is very well placed to assist such businesses”. w w w.ht b . co. u k

“WE’VE RECEIVED SOME AMAZING BROKER FEEDBACK ON THE PLATFORM” Russ Fitzgerald, CIO, Hampshire Trust Bank

Apak Group, a Sopra Banking Software company, have been providing leading global software solutions to the banking and asset finance sectors for four decades.

Our Sprint solution offers industry-leading front and middle office functionality for Lenders and Intermediaries, with point of sale finance applications for smartphone, tablet and desktop.

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“ Our API Infrastructure enables HTB play a greater role in the SME lending ecosystem” — Russ Fitzgerald, CIO, Hampshire Trust Bank

it to build development capabilities with

Virtrium, a Chaucer Group Company.

ease and speed, due to its ability to offer

“Virtrium helped us identify, procure,

API integration. With low-code, the firm

contract and assess the architectural

has commissioned a series of develop-

implications of various API orches-

ments within its operations, such as a

tration layers,” notes Fitzgerald. “In

new mortgage platform. “The bespoke

September 2018 we commissioned

platform targets specialist lending. It will

this transformation work with Virtrium,

be integrated through API infrastruc-

and by December we had settled on a

ture with Phoebus later on this year and

contract with SnapLogic. By the end

will give us much needed operational

of the month, we had implemented the

efficiencies through data collection

API infrastructure into our production

with both internal and external data

environment and had a proof of concept

sources. Opportunities to collaborate

up and running.” Throughout the year

with fintechs within the property market

ahead, HTB will invest in its existing

remains an opportunity waiting to be

applications and develop further plat-

tapped,” says Fitzgerald.

forms focused on improving operational

The bank has also formed a valuable partnership with consultancy firm

efficiency, underwriting capability and broker experience. w w w.ht b . co. u k

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During last year, the firm developed a series of core applications which HTB plans to integrate with back-end platforms using Snaplogic’s API infrastructure. The applications have been created in order to improve efficiency as well as broker and customer experience. “We’ll use them to underpin the specialist advice that we give on a face-to-face basis to brokers and their clients. HTB has also invested in the Sprint platform from Apak Group, a Sopra Banking Software company.

“Our partnership with Apak has worked well for us,” comments Fitzgerald. “Our

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collaborative development of their Sprint platform services the brokers of

‘Capability as a Service’ to supplement

our Specialist Business Finance Divi-

our strength. We have a great relation-

sion. We’ve had some amazing broker

ship with Ben de la Salle from ICA Con-

feedback on the platform. “It is now in-

sultancy, as he gives us the capabilities

tegrated to HTB via our API infrastruc-

of a big bank CISO when I need to set

ture and will shortly integrate Sprint

strategy and direction, as does Cliff

with APIs for Asset valuations and HPI

Ratcliffe from Techana who brings the

checks, further improving efficiency

IT architectural knowledge and lessons

with more opportunities on the horizon.”

learnt from bigger banks to the benefit

On the subject of capability, Fitzger-

of HTB. Cliff has proven to be a valuable

ald notes: “While we have the ambitions

partner for us and I have the benefit of

to build the services and capabilities

them on site on a part time basis as and

of larger competitors, we sometimes

when we need them.”

lack the senior capabilities to help lead

HTB recently refined its credit

us through the journey. I draw down on

risk strategy with help from partner w w w.ht b . co. u k

digital transformation experts for Financial Services Chaucer advises on: • Leveraging technology to innovate • Establishing open banking platforms • Identifying and contracting the right technology partners • De-risking delivery to accelerate value Find out more at www.chaucer.com/financial-services

Deloitte. As a result of this, the bank is

interaction and allows us to drive up

investing in modelling, decisioning and

our proposition, improve our operating

data analytics capabilities. “Deloitte

efficiency and draw information from

were key for us in helping set our strat-

internal and external data sources that

egy and stretch our ambitions,” com-

will greatly improve the way in which

ments Fitzgerald. “With Deloitte’s guid-

we underwrite and assess proposi-

ance and support we have invested

tions,” says Fitzgerald.

in a complete refresh of our data and

“We have established our high-level

BI technology stack, which resulted

architecture and identified, contracted

in a decision to invest in Snowflake’s

and purchased our API infrastructure,”

database architecture and the Tableau

Fitzgerald concludes. “Our API Infra-

visualisation tool.”

structure enables HTB to play a greater

“We’re not on a digital journey to

role in the SME lending ecosystem. We

replace human interaction – this is a

have further commissioned low code

digital journey that enhances human

development tools to develop our capa-

2002

Year founded

1,800

Approximate number of employees

26 bilities in this space and worked closely

As the company continues on its digi-

with flexible platform providers to tailor

tal transformation journey, it is focussed

our proposition. We will further utilise

on using data services to improve op-

data and services with a view to benefit-

erational efficiency, underwriting ability,

ing from open banking opportunities in

and the customer and broker experi-

the short term. Our detailed infrastruc-

ence. “Collaboration with fintechs is a

ture strategy underpins this and dem-

key component of my role and keeping

onstrates how we manage capacity and

a close eye on where Open Banking is

compute capabilities across a hybrid

going is essential for HTB as an organi-

of our own data centers and the public

sation,� notes Fitzgerald.

cloud. This allows us to be an agnostic provider in our approach to transitioning capacity and compute to the cloud, which is aligned with our agile delivery approach,� states Fitzgerald. w w w.ht b . co. u k

Hampshire Trust Bank 55 Bishopsgate London EC2N 3AS www.htb.co.uk