Overview
Municipal Bank Bulgaria, one of the country’s top ten commercial banks, serves a diverse client base spanning corporate entities, SMEs, and retail customers. After years of operating on a locally developed legacy banking system, the bank identified the need for a robust, internationally proven core banking platform capable of supporting future growth and regulatory requirements.
Municipal Bank partnered with Sirma Group to implement Oracle FLEXCUBE v.12.3 - a comprehensive core banking solution that would fundamentally transform operations. The strategic initiative, spanning from 2020 to 2022, delivered a complete transformation including Online Banking, Card Management System, Payment System for domestic and international transactions, RepXpress for regulatory reporting, an Open Banking platform, and a Distraints Management application.
Main Challenges
Municipal Bank faced significant limitations with its legacy system that created critical bottlenecks hindering growth and operational efficiency. The bank confronted multiple challenges:
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Inefficient information structure - Management reporting and regulatory compliance suffered from poorly structured data systems
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Extensive manual processing - Transaction volumes were constrained by manual workflows that limited scalability and introduced operational risk
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Product inflexibility - The inability to rapidly launch new products hampered competitive responsiveness
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Transaction processing bottlenecks - Settlement delays created operational inefficiencies and customer frustration
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Manual fee calculations - Absence of automated fee and commission calculations limited revenue optimization
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Limited integration - Satellite systems operated in isolation, preventing seamless data flow essential for modern banking
To remain competitive, Municipal Bank needed a fundamental transformation that would shift organizational focus from managing operational overhead to driving sales expansion and customer acquisition.
Project Scope
Sirma implemented Oracle FLEXCUBE v.12.3 as the foundation of a comprehensive, fully integrated banking ecosystem:
- Core banking transformation - Complete replacement of legacy system with Oracle FLEXCUBE v.12.3
- Online Banking platform - Modern digital banking interface for seamless account management
- Card Management System - Comprehensive card lifecycle management with authorization module
- Payment System - Integrated solution for domestic and international payment processing
- RepXpress regulatory reporting - Automated reporting to Bulgarian National Bank, European central bank and other regulatory bodies
- Open Banking platform - PSD2-compliant infrastructure enabling third-party integrations
- Distraints Management application - Specialized solution for legal collection processes
- Complete ecosystem integration - Seamless connectivity across all systems enabling unified operations
Why Municipal Bank Chose Sirma
Municipal Bank selected Sirma Group based on over 20 years of proven expertise in Oracle FLEXCUBE implementations, upgrades, and post-production support across multiple Bulgarian and foreign banks. As an established Oracle partner with direct access to FLEXCUBE development teams, Sirma offered unmatched technical depth and reliability. The company’s comprehensive methodology, refined through numerous successful projects since 2002, provided confidence in delivery. Sirma’s portfolio of proprietary banking solutions - including internet banking, card management, payments processing, and regulatory reporting platforms - enabled delivery of a fully integrated ecosystem under a single accountable partner, eliminating the complexity of coordinating multiple vendors.
Delivery
Sirma’s engagement began with comprehensive assessment of Municipal Bank’s existing system and operational requirements. The implementation followed a structured methodology through carefully orchestrated phases: product walk-through and requirements analysis, GAP analysis and solution design, interface development and integration with all satellite systems, and data migration strategy definition and execution. Critical attention was devoted to data migration - comprehensive analysis and validation, cleansing and quality control with defined reconciliation formats, development of migration tools, and extensive testing with real datasets. Throughout the 16-month implementation, Sirma maintained close collaboration with Municipal Bank’s teams across business, IT, and operations.
The dedicated Sirma project team:
- 1 Project Manager + 1 Project Coordinator
- 10 Business Analysts
- 11 Technical Consultants
Following successful production deployment, Sirma continues to provide ongoing support, application maintenance, and customization development based on evolving business requirements.
Results
The Oracle FLEXCUBE implementation delivered transformational improvements across Municipal Bank’s operations:
- Optimized information structure - Management reporting and regulatory compliance now operate on a robust data foundation
- Automation of manual processes - Significant reduction in manual effort through automated transactions, fee calculations, and settlements
- Enhanced customer satisfaction - Improved service delivery and faster transaction processing
- Product agility - Rapid launch of new banking products and services to market
- Streamlined operations - Transaction processing and settlement require minimal time and effort
- Automated pricing intelligence - Fully automated fee and commission calculations, including relationship-based pricing
- Integrated ecosystem - Seamless integration across internet banking, card management, payment systems, and regulatory reporting
- Regulatory excellence - Improved reporting capabilities ensuring compliance with Bulgarian National Bank and European Central Bank standards
- Strategic refocus - Operational efficiency allows focus on sales growth and customer acquisition
Sirma And Municipal Bank Bulgaria Partnership
The partnership between Sirma and Municipal Bank Bulgaria exemplifies successful digital transformation in financial services. By combining Sirma’s deep expertise in Oracle FLEXCUBE and comprehensive banking solutions with Municipal Bank’s vision for operational excellence, the collaboration delivered a complete technology transformation. This project demonstrates how strategic technology partnerships can simultaneously achieve operational efficiency, regulatory compliance, and competitive advantage. The integrated approach - delivering core banking, digital channels, payments, cards, regulatory reporting, and open banking under a single partner - ensured consistency, accountability, and seamless execution.
The implementation of Oracle FLEXCUBE and Sirma’s integrated banking solutions fundamentally transformed our operations. The new platform enabled us to automate critical processes, reduce manual effort, and rapidly deploy new products to our customers. Sirma’s expertise and comprehensive approach throughout this complex transformation demonstrated exceptional professionalism and commitment to our success. Municipal Bank Bulgaria Representative
