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Baltic Shared Services (BSS) - a Clearing House for Credit Unions

28.03.2011

Mindware's core system to underpin Baltic Shared Services offering

The Estonian Union of Credit Co-operatives has teamed with the Virginia Credit Union League to launch a new clearing system, called Baltic Shared Services (BSS), for co-operative financial institutions in Estonia. The system will be underpinned by Mind-xQ, a new core banking solution which is currently being built by an Estonian core vendor, Mindware (IBS, November 2010, Mindware builds new core banking system). 'Our system will be used for managing deposits, loans and transactions as well as for clearing and settlement for inter-union transactions,' says Peeter Klanberg, CEO of Mindware. The first customer of BSS will be Danske Bank in Estonia, which will use Mind-xQ for its local leasing operations.

While the initial focus is Estonia, Klanberg states that the aim is to market elsewhere. This will include post-Soviet countries where Mindware's knowledge of Russian will be helpful, such as Azerbaijan and Kazakhstan. 'The basic idea is to offer a reasonable system to small credit unions,' says Klanberg. He lists a number of goals for the new offering: he hopes it will be competitively priced with low start-up costs; it will have high capacity and the possibility to distribute IT resources among different modules; it will have a distributed architecture that supports outsourcing of different services; it will be flexible and enable quick adjustments to the system (possibly online); it will be modular; it will cover a large range of banking activities; and it will include integrated decision-support system that provides input and support for the decision making process.

Mindware has scheduled three releases of software for Mind-xQ, starting in July 2011, with a second and third in Q1 and Q4 2012. The vendor will, meanwhile, be looking for re-sellers, consultants and new customers in the Baltic States and Eastern Europe. 'Many leads from different countries have popped up,' Klanberg claims.


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