Oracle Customer Case Study

Chinatrust Commercial Bank Reduces Risk by Monitoring Global Credit Limits

Fast and efficient customer support is key in the competitive global banking market. Oracle FLEXCUBE Universal Banking and Oracle FLEXCUBE Direct Banking has enabled the bank to process more than 1,000 transactions per day for a single branch and easily consolidate customers account information from all our locations. Frank Shih, Executive Vice President, Chinatrust Commercial Bank Chinatrust Commercial Bank (CTCB) is a leading bank in Taiwan with an asset base of about US$50.3 billion. At the end of 2007, the bank had 142 domestic and 73 overseas offices as well as representative offices in Bangkok, Beijing, Hanoi, London, and Los Angeles. CTCB offers a range of banking services including deposits, loans, foreign exchange, credit cards, trade services, cash management, electronic banking, and proprietary dealing in foreign exchange, interest rates, equities, and bonds. In the past, CTCBs overseas branches have run independently and made their own IT purchasing decisions. Consequently, each core banking system handled data differently using numerous formats and templates. Transaction processing was done locally and reports across the group were manually consolidated at the end of each month. We were dealing with nonstandard platforms, multiple point-to-point interfaces, and minimal or no systemic support across the organization, said Frank Shih, executive vice president at CTCB. In 2007, CTCB engaged Oracle Financial Services Software Limited to deploy Oracle FLEXCUBE Universal Banking and Oracle FLEXCUBE Direct Banking as the new IT platform to transform its corporate banking business. The standard platform has helped to further automate the banks overseas branches, and provided customers with a single view of their accounts across multiple countries. Automated Transactions, Remote Support With Oracle FLEXCUBE Universal Banking in place, CTCB expects to experience substantial improvements in operational efficiency.
Copyright 2009, Oracle. All rights reserved. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. Published November 2009

Chinatrust Commercial Bank Taipei, Taiwan www.chinatrust.com.tw

Industry:
Financial Services

Employees:
12,000

Oracle Products & Services:

Oracle FLEXCUBE Universal Banking Oracle FLEXCUBE Direct Banking

Oracle Customer Case Study

Key Benefits:
Automated internal processes and consolidated account information from several countries Reduced the time it takes to produce customized reports for corporate customers from three to five days to one day Created standardized processes to better manage global credit limits and collateral across its subsidiaries Provided transaction advice to customers in minutes compared to one to two days in the past Enabled the bank to deploy highly-integrated, multilanguage services to customers Allowed customers to make bulk payment transactions across subsidiaries and geographical locations so that 100 transactions can be processed in 10-15 minutes compared to 500 minutes when done manually

Fast and efficient customer support is key in the competitive global banking market. Oracle FLEXCUBE Universal Banking and Oracle FLEXCUBE Direct Banking has enabled the bank to process more than 1,000 transactions per day for a single branch and easily consolidate customers account information from all our locations, said Shih. The solution has also enabled the bank to deploy remote process support across multiple offices, enabling it to run cross-border electronic banking. In the past, systems were not integrated and it was nearly impossible for one office to support another office abroad, said Shih. Faster Reports, Better Global Limit Management Oracle FLEXCUBE Universal Banking has enabled CTCB to generate customized reports for management and corporate customers much faster than previously. If a corporate customer gives us a clear specification and all the required data is in the core system, we can produce a customized report within one day; this process normally took between three and five days in the past, said Shih. The system also enables the banks Hong Kong and Vietnam branches to send transaction advice to customers instantly via e-mail upon transaction completion. This process literally takes minutes, compared to one to two days if we had to print the advice and mail it to the customer, said Shih. CTCB uses the Oracle FLEXCUBE Enterprise Limits and Collateral module to manage its exposure to customers within a business group. The solution allows the bank to create a standardized process to better manage global credit limits and collateral across its overseas branches. We can now share collateral and credit limits across borders, said Shih. It allows us to set limits for corporate customers at a group and entity level, which is useful when we need to track our exposure for a business group that comprises several entities. Single Portal to View all Transactions Oracle FLEXCUBE Direct Banking has enabled CTCB to provide internet and phone banking services to its customers. Previously, if a customer wanted internet banking functionality, the bank would have to spend time installing tools at the customer site, a process that would take one to two weeks to complete.

Copyright 2009, Oracle. All rights reserved. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

Published November 2009

Oracle Customer Case Study

The Oracle solution, which supports multiple languages and all major authentication methods, allows customers to view information from multiple accounts in various CTCB overseas branches, request online statements, pay bills, set up alerts, and check the status of applications. The system allows customers to do bulk payment transactions across subsidiaries and geographical locations, said Shih. Customers can use the Web-based system to send a bulk file to process 100 transactions in 10 to 15 minutes. It could take 500 minutes to process these transactions manually. Why Oracle? CTCB surveyed the top three corporate banking systems on the market with a gap analysis and internal scoring process before selecting Oracle. We completed a comprehensive gap analysis with two of the top IT vendors in the world, said Shih. Following this analysis and lengthy debate within the organization, we selected Oracle FLEXCUBE solutions. We believed that the solution fitted our business requirements, and would integrate well with other systems to provide end-to-end services. We also felt comfortable working with Oracle consultants who had a mature approach to project management. Implementation Process In early 2007, CTCBs IT staff and Oracle experts built a list of processes, which were mapped to the banks existing procedures. Oracle also introduced some industry best practice methodologies into the mix. These processes were then fed into Oracle FLEXCUBE Universal Banking, enabling the bank to scale up operations by simplifying the initial data capture process, and introducing authorizer-level checks. The solution was deployed across the banks Vietnam, Singapore, and Hong Kong operations between July 2007 and July 2009. The bank will deploy the solution at its New York office by the end of 2009 and other overseas offices, including Taiwan, in 2010 and 2011.
Copyright 2009, Oracle. All rights reserved. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

Published November 2009

Oracle Customer Case Study

Advice from Chinatrust Commercial Bank Make sure your requirements are mapped out correctly from the start. Avoid introducing too much change during the project implementation, as it can have a negative influence on staff, and slow down the project. Ensure that users are comfortable with the changes that are being made.

Chinatrust Commercial Bank (CTCB) is a leading bank in Taiwan offering a range of banking services. These include deposits, loans, foreign exchange, credit cards, trade services, cash management, electronic banking, and proprietary dealing in foreign exchange, interest rates, equities, and bonds.

Copyright 2009, Oracle. All rights reserved. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

Published November 2009