Providian Trust: It and Technology

Business context:

• Providian Trust deliver financial and fiduciary services through a network of 216 branches with the headquarter in New-York.

• Providian trust has origins which go back centuries and are based on high values – Trust, Integrity and Honesty

• Three division : Pension and Institutional Trust Services (PITS), Personal Trust Services and Trust Operations

• The trust officers working in PITS and Personal Trust were considered ‘front office' people, 250 personnel in the Trust Operations Department was called the ‘back office' and are responsible for handling, settlement and record keeping for securities.

• 840 FTE with the majority of trust officers working for Providian Trust for 20 to 30 years

• Personal Trust services included the administration of estates, trust and agencies, will and estate planning, self-directed registered savings plans and dealer trustee services.

• Providian Trust had always managed their clients' affairs on a personal level, calling them regularly and generating and correcting financial statements with the help of administrative support staff

• Intense competitive pressures and client demands were driving the need for improvements in the quality of trust services

• The institutional custody business is becoming extremely technology-intensive

• Project: to convert the trust division's outdated information system into a more efficient system using Access Plus, new trust and custody management software made by Select One. (A proven, off-the-shelf system will be customized)

• Implementation will take about 1,5 year before it will be used and a detailed implementation plan is set up by the company.

Case issues:

• Lack of control in Trust divisions. (more control is needed for implementation)

• Really strong business culture when mistakes are made, personnel blame each other, they're completely averse to technology, uncooperative and the leave at five to five. (change resistant environment)

• Employees first have to learn how to use the new software system, but also how to use computers in general.

• Number of FTE is reducing from 840 to 660 due to the new information system.

• The functions which the remaining employees will fulfill change entirely.

• The IT department is not involved in changing the new system.

• The back office had to drive the project even though they were not supporting it.

• Communication problems between front and back office

• Project manager left Providian Trust for a new position midway through the project.

• Too many people involved in the project, directions and instructions are coming from too many sources

Results:

• Project plan view things from a headquarters perspective and it does