Information Technology

In 2007, the Bank upgraded its adopted information technology strategy to the year 2010. The key objectives remain intact. Consolidation of IT architecture to reduce the number of solutions in use remains the primary goal. In addition, major efforts will focus on developing solutions to comply with legislation and to improve customer support services. Besides these development projects, improvements in methodologies and methods of managing IT will be carried out in order to ensure higher success and efficiency, and to shorten the time for implementing solutions. This year also, the Bank managed a high online availability rate at a yearly average of 99.68.

In 2007, the NLB continued its strategy of partnering with local businesses to develop software that will ensure sufficient capacity for the next two to three years. This approach presents the bank with more development options, helps reduce dependence on key suppliers and allows implementation of much needed operations that help simplify IT support. Such an approach also provides the Bank with the opportunity to involve and train its own employees so that they can develop the skills, knowledge and long-term ongoing expertise to maintain and upgrade such solutions.

The new customer support system in retail banking was finalized in 2006. In 2007, the Bank upgraded a support system for the new products. E-banking customers thus gained access to electronic bank statements. The Bank provided the users of e banking with access to electronic statements of their accounts and introduced the CRM customer support system. In conjunction, improvements were made for administering transactions in compliance with regulations to prevent money laundering as well as continuing efforts to support the comprehensive management of cash transactions. The Bank worked intensively throughout the year on introducing its credit card loyalty plan.

In the field of corporate banking, the Bank continued to implement the integrated Globus system and almost completed the transfer of accounts, as well as the majority of loans and deposits. In 2008, the Bank will focus on the implementation of solutions for more complex lending and trade financing products. It will also continue to migrate the business accounts from the old legacy systems.

In order to better manage securities trading risks, the NLB introduced the Kondor + system and integrated it into its back-up office systems as well as expanded its range of custody services.

The introduction of the uniform securities register will serve as the foundation for the improvements in bonds and securities support management systems.

In the payment support system, the Bank’s primary focus in 2007 was on the successful introduction and integration of the uniform payment system - Target2. The next key step in the consolidation of payment systems in the EU is the SEPA project scheduled for completion by 2010. The planned framework for a gradual transition from the existing national standards and payment instruments to the SEPA standards was prepared on the national level. Key to success is the cooperation of both, external institutions (ECB, European Payment Council), and national institutions (Bank of Slovenia, Združenje Bank Slovenije). Preparations in the NLB are being carried out systematically and in accord with the plan. The adoption and adjustment of systems has been a gradual process that began in September 2007 and will continue until SEPA is fully implemented. During the past year, the SEPA project required great effort and commitment on the part of employees as well as numerous changes in technological infrastructure. From the initial preparation phase to January 2008, over 400 people have been working on the SEPA project.

The introduction of the SEPA credit payments in January 2008 does not mean that the adoption of SEPA is concluded. In the coming years, activities to implement SEPA direct charges and to introduce all the required adjustments (standards) for credit card and cash transactions will continue.

Because of changing regulations, the NLB is constantly modifying and improving its support systems, particularly these areas: reporting to external institutions, tax legislation, introduction of international accounting standards, and BASEL II. In 2007, the NLB successfully improved its system for introducing changes. Proposed alterations were combined into larger packages, reducing the number of changes and making comprehensive user testing more effective, and as a consequence, the implementation process was simplified and caused fewer problems.

In 2007, due to its adopted model of business lines and its IT strategy, the NLB also took a more active role in information technology projects for the Group. After the merger of banks in the areas of former Yugoslavia, only three different integrated solutions will remain in use (and after the merger in Serbia only two). This will enable the NLB Group to create suitable IT support centers to work out individual solutions and to improve the quality of its relations with suppliers.

Statement of Compliance with article 42 of the Electronic Commerce and Electronic Signature Act

The NLB assures liability for the AC NLB, the accredited certification service provider that issues qualified digital receipts, in line with the requirements of the article 42 of the Electronic Commerce and Electronic Signature Act through its free liability assets. Bank assets on December 31, 2007 were €13,093.6 million, and assets secured for liability €170,1 million. In accord with the article 27 of the Act, the minimum assets not used as collateral for certification service provider liability is € 625,938.91.