Financial services vendors vie for China’s smaller banks
With mounting competition from IBM, Oracle, TCS, and domestic financial services providers, Digital China must ensure delivery of quality products and services, and keep its most talented staff. July 25, 2012 | Baron LaudermilkTo remain competitive in China’s financial services industry, domestic financial solutions provider Digital China has gone through several major transformations over the past few years. The company managed to reach a sustainable level of financial stability by investing in customer relationships, targeting lower-tiered banks for implementation of its core-banking systems, and other financial tools. Figure 1. Digital China’s FY 11/12 annual segmented results breakdown in HK$ A former subsidiary of Lenovo before striking out on its own in 2000, Digital China is currently led by Guo Wei. Digital China started from humble beginnings but managed to get itself listed on the Hong Kong Stock Exchange in 2001. According to Jacqueline Niu, vice president of Digital China, the company started providing core-banking systems to tier-two, three and four banks between 2001 and 2005. “Our first core-banking system was old, with a simple functionality. It was not paradigm-driven, and didn’t have a lot to do with business.” In other words, Digital China’s core-banking system was not able to integrate critical applications, such as transactional banking modules, teller systems, and risk management software while larger banks then had already started deploying modern core-banking systems and applications. Digital China then targeted smaller, rural and commercial bank that required simpler systems. Digital China’s initial core-banking team consisted of young engineers, many of whom had only recently graduated from college with little or no prior working experience. This lack of experience contributed to the lack of functionalities in their initial core-banking systems. It was not until 2006 that Digital China developed a core banking system (Commercial Banking Core Business System Sm@rtSymbols) allowi... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: China, Core Banking, Technology & OperationsChina,Core Banking,technology, China,Core Banking,Technology & Operations, Keywords:Digital China, Jacqueline Niu, Guo Wei, Oracle, IBM, TCS, Fidelity China, Guangliang Digital China, Jacqueline Niu, Guo Wei, Oracle, IBM, TCS, Fidelity China, Guangliang
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