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Taishin Bank achieves over $5 million

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Taishin Bank achieves over $5 million
Taishin Bank achieves over $5 million
in TCO savings and stimulates growth with
core banking solution from TCS BaNCS
Abstract
The demand for financial services in Taiwan has increased
substantially in recent years. According to a recent study,
Taiwan has the third-largest banking sector by assets in Asia and the
third-highest insurance premiums per capita. This provided Taishin
Bank with huge market opportunities. However, its antiquated and
rigid legacy banking system hindered the bank’s ability to respond in
a timely and cost-effective manner and, as such, constrained its
growth potential.
The bank decided to replace its core banking system with the
scalable, flexible, open platform-based core banking solution from
TCS BaNCS, thereby enabling it to maximize operational efficiency.
With this implementation, Taishin became the first bank in Taiwan
and one among the select few in Asia to migrate its core systems
from a mainframe environment to open platform architecture.
Client
Taishin Bank
Industry
Banking
Offering
Core Banking
About the Client
Established in 1992, Taishin International Bank (Taishin) is headquartered in Taipei, Taiwan. Taishin merged
with Dah An Commercial Bank and established Taishin Financial Holdings through share swap or share exchange
in 2002. The bank operates through an extensive network of 101 branches, over 2,000 ATMs and has around
5.5 million accounts.
Business Challenge
TCS’ Solution
Since its inception, Taishin Bank has grown rapidly.
The bank’s legacy core banking system operated in a
mainframe environment initially providing adequate
support. Fuelled by growth and the need to quickly and
efficiently introduce new products and services through
a multitude of channels, the bank encountered
numerous barriers as a result of the inflexibility of the
core system.
The bank partnered with TCS to successfully implement
the core banking solution from TCS BaNCS, providing
nearly 60 percent of the requisite manpower and
deploying an internal project development team, which
included application development and IT support staff.
Over the years, the bank also had successively added
mutual funds, and credit card products in addition to
expanding its delivery channels to include internet and
call centers. Modifying the system proved to be difficult,
costly, lengthy and risky, making the bank reluctant to
pursue this strategy except in critical situations. This
adversely affected its ability to develop and introduce
new business strategies, products, and services. By early
2000, when the core system was nearing full capacity
and running at a dismal 85 percent average up-time, the
bank embarked on a core systems replacement project.
With a clear set of requirements, namely, scalability,
flexibility, improved costs and performance, the ability
to easily integrate new applications and functionality,
and support 24x7 real-time services, the bank evaluated
a number of IT solutions. These analyses led to the
conclusion that a distributed architecture supporting an
integrated systems structure would provide the best
technical platform. The core banking solution from TCS
BaNCS emerged as the best fit based on its strong open
platform architecture and superior product features.
Following a modular approach that was supported by
the internal bank team, TCS consultants implemented
the core modules of accounting, deposits and loan.
The componentized TCS BaNCS architecture made it
possible for the bank to deploy components in a phased
approach and add more components aligning with the
business drivers and priorities. The solution supports a
broad range of deposit and loan products that includes
savings, checking, overdraft and term deposit accounts,
and lending products such as consumer mortgages,
corporate loans and commercial loans. This also includes
a comprehensive range of transactional banking
services, remittances, banker’s cheques. In fact, when the
bank realized the potential inherent in the TCS BaNCS
product, its implementation project plans were adjusted
to leverage the solution’s architectural flexibility and
functional coverage. The bank also saw this as an
opportunity to not only refresh technology but to also
re-engineer business practices that exploit the benefits
of the new solution’s processes and features. This
resulted in a review of the defined milestones to enable
the business and IT alignment process. The system went
live in February 2004 and was rolled out using a ‘big
bang’ approach across 89 branches transferring
4.5 million customer accounts in just two days. The ‘big
bang’ approach was considered over a phased roll-out as
it was more cost effective and did not rely on
maintaining both systems during the migration period.
Overcoming the challenges of defining the necessary
system requirements, building a competent and
adequately-sized development team, and conquering
language barriers, the implementation team successfully
replaced the aging system with the component-based,
N-tier architecture core banking solution from TCS
“To provide our services and products according to our customers’ needs,
we transferred our systems to support a single view of the customer.
We consolidated data so that users get information on the account level or
the product level, but also from wealth management and the lending side of
the bank. When a customer comes in, you can type the account number,
and you get all the major information about that customer. Some
information we can aggregate using batch processes, but other information
is real-time-and for that we need data from TCS BaNCS”.
- Josephine Yang,
Senior Vice-President, Consumer Banking System Division, Taishin Bank
Experience certainty
True certainty of success comes from working with a partner you trust to provide
the insight, support and expertise that will propel your business forward. Experiencing
certainty with TCS means you can count on results, partnership and leadership.
BaNCS. The flexible system, with around3,000
configurable parameters, gave Taishin Bank greater
control in defining its data model and a single view of
customers, products and employees. As an example, the
bank re-oriented its approach to marketing and profit
analysis by making the relationship manager or the
accounts officer the profit centre, instead of the branch,
as previously.
The new system helped re-engineer the bank’s
operational processes, delivering both business and IT
benefits, including its ability to manage large transaction
volumes on a 24x7 basis, with 99.9% uptime. Now it
takes 30-40% less development time to launch new
products, and 20-30% less time to implement new
system functions. In its first year of operation, the Total
Cost of Ownership (TCO) of the new system was just 42%
that of the previous, multi-based system.
The system has automated front- and back-office
processes, enabling Taishin Bank to provide best-in-class
customer service at a reasonable cost, thereby
maximizing operational efficiency and minimizing risks.
Results
Deploying an integrated solution that automates all
aspects of core banking operations across entities
delivered measurable benefits to Taishin Bank.
These include:
n
Estimated operational cost savings of nearly
$5.1 million annually
n
TCO savings of nearly 60%
n
24x7 real-time operations as compared to batch
operations by the previous system
n
Stable system with an uptime rate of 99.9% as
compared to 92% with the old system
n
Reduced development cycle, supporting rapid
modifications
n
Faster time-to-market, with time to launch new
products or change existing products reduced by 3040% and also significant cost savings.
n
Time taken to add new functionality reduced
by 20-30%
n
Improved back-office efficiency nine-fold
n
Facilitated better manpower utilization through
improved efficiency - staff re-allocated to valuecreating functions such as sales, marketing, and
customer service, thereby strengthening its ability to
cross-sell products
n
Enabled business process re-engineering
n
Streamlined operations, reducing errors
n
Enhanced ability to provide services via multiple
cross-channels
n
Enhanced customer sales and service and improved
customer experience
About TCS BaNCS
The product suite for banking, capital markets and insurance enables business transformation in
financial services. Increasing operational efficiency and helping financial institutions stay agile,
our solutions deliver a competitive edge with unmatched certainty. We aspire to be better than
established benchmarks, which is why we have embedded an Alpha (“ ”), representing superior
returns delivered to our customers, consciously and prominently within our brand. The plug and
play, component-based product suite consistently turns in impressive benchmark results, with a
fine-tuned, highly scalable technology architecture that supports financial institutions with the
highest capacities for transaction volumes, peak transactions per second, and transaction
history size. With such a track record, it is only natural that the TCS BaNCS product suite can help
financial institutions ofany size gain a distinct, competitive edge.
For more information, visit: www.tcs.com/bancs
Contact
To know more about us, contact [email protected]
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