“Take control of your timeline”

VIDEO | Avanza Bank has completed the complex overhaul of its core systems, a project compared by experts during a session at PostTrade 360° Nordic 2024 to “open heart surgery during a marathon.” Faced with the decommissioning of Nasdaq’s Wiser system, the bank was under immense pressure to transition to a new platform while maintaining daily operations. Through rigorous testing, strategic prioritisation, and collaboration with technology partner Tietoevry, Avanza navigated the challenges and emerged with a fully functional, modern system.

Throughout the project, Avanza had to make difficult decisions on what to prioritise. The tight deadlines required the team to focus on critical deliverables and postpone less essential tasks. “Every month, I went to the management team and said, ‘If all of these teams are going to deliver, then we’re not going to do XYZ,” explained Lina Troëng, head of PMO at Avanza. By maintaining this disciplined approach, Avanza ensured that the most important milestones were met.

Avanza also adapted its internal structure to meet the demands of the project. Initially formed as a temporary team, a tech group was created to handle the transformation. This team became permanent as the need for ongoing support and development of the new AbaSec system became evident. “We realised we needed this tech team to keep it all together,” Troëng noted, emphasising the importance of aligning business and technical teams to ensure long-term success.

Engaging third parties early

One of the major hurdles was ensuring seamless integration with third-party systems, such as custodians and central securities depositories (CSDs). Avanza and Tietoevry worked diligently to establish communication channels and synchronise timelines with external partners. Troëng admitted that while they started this process early, it remained a challenging aspect. “Third-party integration should probably be something high up on your priority list,” she advised, recommending that future projects devote significant time and resources to this critical task.

Despite the challenges, early engagement with third-party vendors played a crucial role in ensuring that Avanza met its go-live deadlines and delivered a fully operational system with minimal disruption.

Testing, training, and knowledge sharing

Avanza’s unique approach to testing and training was another key factor in the project’s success. Rather than relying solely on external testers, the bank’s employees, who would ultimately be using the system, were directly involved in user acceptance testing (UAT). “The people who would work in the system did the testing themselves,” Troëng said. This ensured that knowledge was shared across teams, reducing single-person dependencies and improving system familiarity before going live.

Tietoevry’s Richard Rousset praised this hands-on approach, noting that direct user feedback during testing helped identify and address system issues. “We got direct feedback from the users, which helped us improve the system within the project frame,” Rousset explained. This iterative approach, with new features delivered every two weeks, allowed for continuous improvements and adjustments.

Balancing quality and deadlines

Data migration is often a significant challenge in system transformations, and Avanza’s project was no exception. With millions of accounts and positions to migrate from the legacy Wiser system to the new ABASEC platform, ensuring data quality was paramount. “We wanted a new shiny system, not one that carried the baggage from the old system,” Troëng said. The bank began cleaning and preparing its data early, conducting numerous test migrations over the course of a year and a half to ensure the transition would be smooth.

Tietoevry played a critical role in managing the data migration process, setting up a test environment that closely mirrored the production system. “We involved the performance team early to ensure the migration process was smooth,” Rousset explained, noting that early testing helped avoid potential issues and ensured the project remained on track.

Lessons learned

Reflecting on the project, Troëng stressed the importance of taking control of the timeline. “What you should not do is wait until someone else puts a timeline on you. We should have replaced Wiser five years earlier,” she admitted, advising other organisations to initiate system upgrades before external pressures force their hand.

In addition, Troëng praised the collaboration between Avanza and its competitors during the transition away from Wiser. “We had a board of representatives from all the banks, which fostered a great collaboration between competitors,” she said, highlighting the value of cooperation in navigating industry-wide challenges.

Overall, the modernisation of Avanza’s core systems serves as a roadmap for other financial institutions facing similar challenges. Through strategic prioritisation, collaborative teamwork, and early testing, Avanza successfully navigated a high-risk transformation and emerged stronger, with a system designed for the future.

Panellists:
Richard Rousset, senior product advisor, Tietoevry Fintech Sweden AB
Hugo Sundkjer, head of Strategy, Business Development and Sales, Tietoevry Banking, Wealth
Lina Troëng, head of PMO, Avanza Bank

Hosted by Tietoevry.

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