Banco Pichincha partnered with TCS BaNCS to implement its core banking solution, which helped lower their cost to income ratio, achieve greater profitability and improve productivity.

The Customer

Banco Pichincha, based in Quito, Ecuador, is the largest bank in Ecuador, with assets worth US $4.5 billion, and having more than 235 branches with more than 1.8 billion customers.

Business Scenario

Though Banco Pichincha was clearly a leader in the market, the bank did not wish to take their dominant position for granted. There were multiple challenges–demand from consumers for new and diverse products and services, smaller competitors who offered better pricing, granular market segmentation and innovative service distribution channels.

TCS’ Solution

The core banking solution from TCS BaNCS was running in parallel with their legacy core platform during the migratory phase. The first phase of the technology implementation went live by the end of 2008 and major part of implementation was completed by 2009 with integration of all assets and liabilities with sales channels, along with process and workflow changes.

Key Benefits:

  • Increased its loan portfolio from approximately US $770 million in 2003 to US $1.67 billion in 2006
  • Increased profitability ratio from 12% to 21%
  • Lowered its efficiency ratio from 82% to 55%
  • Reduction in cost by 32%
  • Improvement in productivity by 40%

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