Proprietary application for administration of housing loans
A large and important part of Nykredit’s business is the financing of social housing. Since the early 1990s, Nykredit has been using a proprietary application to manage the loans used for housing. This application is called AlmenPC, based on Delphi software.
AlmenPC is used for the conversion and creation of loans. To comply with the then current statutory requirements and regulations for subsidized housing financing, the application had to be continuously maintained by Nykredit’s own internal resources. The same resources that have been involved in developting and maintaining AlmenPC from the very beginning.
Important insight from staff ended up making Nykredit vulnerable
A few years ago, a team involved in developing AlmenPC at Nykredit was disbanded into other tasks. Nykredit soon realised that in doing so, they were losing several of the core competencies who were providing crucial insight into the application’s structure. Nykredit recognised they were not secured in terms of future maintenance and development, and quickly took measures to future-proof their application for the longevity of AlmenPC as well as the people involved. Their staff spotted the vulnerability, and saved Nykredit from future problems.
How to future-proof a business-critical system and avoid knowledge loss?
To ensure that the application stays up-to-date, the knowledge of the system is safe, and the success of the application isn’t dependent on a few particular people, Nykredit outsourced the task. They set out to find a business partner who has the understanding of both the task and technology, could offer the right competencies (which included knowledge of Delphi software), provides daily support, and is agile.
Another requirement was that the business partner ought to be Danish. They wanted to avoid language-barrier issues, as fast communication was crucial, and the type of state-subsidised financing for social housing was unique to Denmark and would be easier to understand for a company anchored in Denmark.
Guaranteed insight and knowledge of the application’s structure and history ensures future maintenance and development
Commentor filled all the requirements Nykredit had for a business partner, even the ever-crucial knowledge of Delphi. Commentor took over responsibility for operating the AlmenPC application. Both parties agreed on an Application Management solution, where Commentor guaranteed competencies with insight into the structure and AlmenPC to always be available, meaning that Nykredit has a consistent high level of security over their system. The agreement also includes the constant maintenance, updating, and daily support, all to ensure that it remains compliant with applicable legal requirements and regulation.
Results: Knowledge assurance, stability, and scalable resources
Today, Nykredit has a solution where:
Knowledge from the team involved in developing AlmenPC at Nykredit has been transferred to Commentor.
Assurance that the application can continue to be maintained and further developed.
A guarantee that Commentor, via the Application Management agreement, always has a team available that has insight into AlmenPC.
Development and maintenance of the application are both flexible and independent of single resources.
AlmenPC’s underlying technology is always up-to-date and at its most efficient level.
Commentor continuously monitors the market and advises Nykredit on best practices, new releases, and necessary measures to improve the application.
Internal resources can be released for other tasks focusing more on the core business.
They have access to scalable resources at Commentor, so extra expertise and capacity can be allocated as needed.
About Nykredit and AlmenPC
Nykredit‘s business spans mortgage banking, banking, insurance, and property brokerage. Their financing for subsidised housing is part of Nykredit’s mortgage bank, and the loans are guaranteed through state support. Social housing is found only in Denmark and accounts for a large part of the country’s youth housing, housing for the elderly and family housing. There are just over 550,000 social housing units in Denmark.
AlmenPC is a proprietary application developed in the early 1990s by internal Nykredit resources. The application handles data in connection with loan conversions and the creation of new loans. The application has been continuously maintained and adapted in accordance with current legal requirements and regulations in the area, and it is essential that the application can continue to be updated and maintained.