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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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