Bank Itaú is one of the largest financial institutions in Latin America, with 90 years of experience and operations in Argentina, Brazil, Chile, Colombia, Paraguay and Uruguay. It has more than 17 million customers and a total of 3,000 offices open to the public.
One of the milestones that marks the path we have traveled with Itaú Chile is undoubtedly the merger that took place between the institution and Corpbanca seven years ago. Not only did we ensure a successful support for its legacy system, but we also detected the importance of having a Treasury Transactional Repository that could centralize the information between both banks regarding credit risk calculations and position management of the different portfolios.
“As suppliers we operated in two areas: on one hand, the support and maintenance of the legacy system used by the bank, and on the other hand, the functional management of the treasury and money desk with the implementation of new products and variations, which helped us understand the transactional cycle both technically from the software and financially in its implementation,” states Pedro Melo, Country Manager of VMetrix.
This solution provided by VMetrix was key for the bank’s Chilean subsidiary, as it became a functional element that positively guided the merger and, in addition, it was the beginning of the successful implementation of V3Vmetrix and its V3 Intelligence software, once Itaú Chile started the migration from one international system provider to another.
During this survey process, the institution realized that despite the change, there would be important requirements of the transactional cycle that could not be processed, such as automatic document generation, centralized credit risk calculations, among other regulatory reporting interfaces.
Itaú raised this issue with a specific purpose: they were interested in finding out whether they would be able to use the Treasury Transactional Repository again. In this regard, our advice was clear: this project was designed exclusively as a data model and lacked regulatory and customized report generation engines since it was not software, but rather a complementary tool to the merger process between two banking institutions.
“We introduced V3 Intelligence with the certainty that it was what the client required at a technological and financial level, and with a six-month implementation time at the most. To date, there is no solution to all the problems presented by the Latin American transactional data model in terms of integrating several systems in order to provide essential information such as certificates, reports and interfaces that the user can quickly and securely access and manage,” explains Melo.
In the timeline, while VMetrix was moving forward in the Intelligence configuration, the bank was undergoing a very lengthy migration process between its old legacy system and the new one, which should be up and running in a year at the latest. This system was already having problems with local regulatory agencies and was not allowing them to generate the reports requested by the entity.
“One of the pillars of our relationship with the bank is based on a very fluid communication; we consider ourselves their partners rather than their suppliers. That was the reason why, when we learned about this concern, we moved forward to the production of one of the phases of V3 Intelligence related to the generation of regulatory information for the Central Bank, and thus the problem was successfully solved”, recalls VMetrix’s Country Manager about this situation, that ended up turning into another milestone in the history between both organizations and that has even crossed borders and reached the attention of the bank’s subsidiary in Paraguay.
According to Pedro Melo, as of today V3 Intelligence is scheduled to go into production in August 2022 only because it depends on the new software that Itaú Chile has acquired to finally start operating.
“Our integrator has the function of consolidating all the swap portfolios and incorporate them into the system’s reports (interfaces, credit risk calculation) to verify that the processes are working properly”.