Chinese banks' matured approach to IT partnerships bodes well for domestic financial eco-system
Chinese banks now look at five decisive factors when selecting prospective IT partners – brand, work history, committed resources, quality of service, and cost. March 06, 2013 | Baron LaudermilkIn China, connections are critical in acquiring business opportunities. However, when it comes to Chinese banks selecting their technology partners, there are a few main factors that banks consider before signing a contract with any such vendor. Not only are connections important, so is the vendor’s brand, its past performances in the country, the amount of resources the vendor can commit, and of course, the total cost charged for a single project. Hebei Rural Credit Union’s costly overhaul Hubei Rural Credit Union (HRCU) learnt the hard way when it came to selecting its vendor partner. In 2005, due to rapid growth, the financial institution selected a domestic Qingdao core-banking vendor to help install a core banking system. Within six years, the bank discovered that the processing rate of its core banking system was too slow, with the mainframe frequently overloaded, forcing the bank to seek an alternative vendor who could deliver a more flexible and reliable system. Subsequently, HRCU opened the vendor bidding process to include foreign vendors such as IBM and TCS. The bank considered various factors before making a final decision. The first being the vendors’ past performances in China; the second being the vendors’ services and manpower commitment. With HRCU boasting over 20,000 employees requiring training upon successful implementation of a new system, the chosen vendor must be able and willing to commit a significant amount of their time and expertise. Finally, the cost would have to be within the bank’s IT budget. HRCU looked at multiple factors before final vendor bidding process Figure 1. Estimated importance of factors influencing HRCU’s core banking vendor selection HRCU finally selected to implement TCS’ BaNCS core banking system, not only because of the vend... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: China, Core Banking, Customer Centricity, Innovation, Technology & OperationsChina,Core Banking,Customer Centricity,Innovation,technology, China,Core Banking,Customer Centricity,Innovation,Technology & Operations, Keywords:HRCU, TCS, Liu Zhigao, China CITIC Bank, SAS, Lu Tianggui, Oracle, Harbin Bank, BoC, Du Quan HRCU, TCS, Liu Zhigao, China CITIC Bank, SAS, Lu Tianggui, Oracle, Harbin Bank, BoC, Du Quan
|