HBRCC’s new core banking system improves IT and business functions
Hubei Rural Credit Cooperative implemented TCSFS’s BaNCS core banking system to increase transaction times and become more market-driven and customer-centric. April 11, 2013 | ResearchBackground Hubei Rural Credit Cooperative (HBRCC) is the largest credit union in Hubei province. Comprised of 68 individual credit unions it has more than 27,000 employees, 70 million accounts, and 2,103 outlets. HBRCC has more than 30 million customers, it has extended loans to over 3 million farmers, and it provides clearing and settlement services to around 70% of the rural areas in the province. By 2011 HBRCC acknowledged that their legacy core banking system, installed in 2005 by a company from Qingdao China, could not handle the transaction volume the bank was processing. The daily transaction volume at the beginning of 2011 quadrupled that of 2006. The processing rate was slow and the mainframe was frequently overloaded, especially during peak-periods such as year-end or during the Chinese Spring Festival, which angered customers. To avoid installing a new core banking system HBRCC had taken multiple measures to optimize its legacy system, but it was still continually overloaded. For example, the bank replaced the server core and even suspended certain types of business transactions in order to prevent a system crash. These steps inconvenienced clients and damaged the reputation of the credit union. In early 2011, the bank decided to replace its core banking system, and conducted a bidding process to find an experienced company to implement the new system in a cost effective and timely manner. The bidding narrowed down to two international companies: IBM and Tata Consultancy Services Financial Solutions (TCSFS), a strategic business unit of Tata Consultancy Services (TCS). HBRCC selected TCSFS to install their BaNCS core banking system due to their experience in successfully installing core banking systems in similar types of banks in mainland China, such as Guangdong Rural Credit Union (GRCC), and because their services were judged more affordable than IBM. The challenge As a mult... 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, Technology & OperationsChina,Core Banking,Customer Centricity,technology, China,Core Banking,Customer Centricity,Technology & Operations, Keywords:TCSFS, Hubei Rural Credit Cooperative, BaNCS TCSFS, Hubei Rural Credit Cooperative, BaNCS
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