Within the development, Getronics has helped the Derbyshire to separate its business processes from its legacy applications. By splitting the business processes computer code, the system provides a more flexible and cost efficient platform for building IT compliance in response to any new FSA regulations. The IT solution was deployed in only two months across the Derbyshireâs network of 52 branches and Central Sales Division, ensuring the Derbyshire was compliant in time for the ICOB deadline of 14th January this year.
The Insurance Conduct of Business rules followed hot on the heels of similar legislation for mortgages (Mortgage Conduct of Business rules), which had a deadline of 31st October 2004 and which Getronics also helped the Derbyshire to meet. With further upcoming FSA regulations, such as Basel II - some companies have had to allocate up to 15 per cent of their support staff to work on compliance projects.
The initial goal of the programme, part of Getronicsâ Application Integration & Management service portfolio, was to ensure compliance with ICOB. However, the new system has also allowed both the mortgage and insurance systems to be integrated with the Derbyshireâs CRM and accounting systems, resulting in reduced service costs and improved business processes.
"Industry regulation and the new conduct of business rules have put a lot of pressure on our IT department and on our systems," says Tony Hurl-Hodges, Director of Risk at the Derbyshire Building Society. "Regulations will continue changing, so it is important to get the infrastructure right on a project like this. The solution Getronics has provided gives us a platform from which new systems can be built more easily, giving us the flexibility to comply with new regulations in a timely and more cost efficient way."
Says Clive Hyland, Chief Operating Officer, Getronics: "Compliance is one of the major issues facing banks and building societies alike. Itâs a challenge for British business just to keep up with the host of regulatory requirements and changes let alone make their IT systems compliant in the timescales given. But the Derbyshire now has an advanced e-business programme and infrastructure that make it easier, more cost effective and faster to become compliant."
Getronics has a long and distinguished track record in delivering IT systems for the financial services industry and has a 15-year history of developing and implementing systems for the Derbyshire.
* Computing, FSA warns of major compliance burden, James Watson, 26 January 2005