Industrial Bank of Korea goes live on TEMENOS™ CoreBanking as its Next Generation Banking System
11 October 2004
ATLANTA, Ga. - October 11th 2004 - TEMENOS Group (SWX:TEMN), a provider of integrated core banking systems, today announced that Industrial Bank of Korea (IBK), one of Korea’s leading banks for small and medium-size enterprises (SMEs), has gone live on TEMENOS™ CoreBanking solution. The system, which went live on the 6th of September, enables the bank to have non-stop processing and shorter product development periods.
IBK stands as one of Asia’s top-100 banks in assets. TEMENOS™ CoreBanking, jointly implemented by IBM Korea and IBK will operate IBK’s 391 branches throughout Korea, offering 24x7 non-stop processing. These branches, serve 10 million customers with 15 million active accounts, and their 2,358 ATMs/CDs generate an average of 10 million transactions per day, peaking at 15 million. The peak average number of transactions per second exceeds 390.
The Korean banking sector has a strong mandate to implement Next Generation Banking Systems as a result of the 1997 Korean economic crisis. Deploying Next Generation Banking Systems is a key element in strengthening the banks to support the structural reforms in the financial markets.
Sir Jai-Hoa, general manager, IBK says: “ TEMENOS™ CoreBanking not only enabled us to meet the critical requirements of the Next Generation Banking Systems but also offers the best of both worlds: functional richness combined with the flexibility of its data model and component-based architecture. The product development cycle has been reduced from 30 days to only 3.”
“Our partnership with TEMENOS enabled IBM Korea to deliver a Next Generation Banking System meeting IBK’s stringent requirements. The new system replaced many in-house developed legacy systems. This Next Generation Banking System offers IBK the competitive advantage to remain the leader in the SME banking space for the foreseeable future,” said Ilman Chung, Partner, IBM BCS Korea.
The full implementation was completed in just over two years, a deployment far ahead of other similar projects in progress. And, the IBK project represents the first successful Next Generation Banking System implementation based on an international banking software package.
“The robust architecture of TEMENOS™ CoreBanking system is credited for the timely implementation in IBK,” explains James Buckley, CoreBanking solutions director, TEMENOS. “The system is packaged to allow third party Systems Integrators, such as IBM Korea, to implement the overall core banking project.”
With the government owning 51% of the Bank, IBK complies with stringent capital coverage and risk management policies set forth by the Korean banking authorities. As a result, IBK has earned excellent credit ratings relative to its domestic peers and is regarded as one of Korea's premier financial institutions.
Andreas Andreades, CEO of TEMENOS says: “The selection and successful deployment of the TEMENOS™ CoreBanking system by IBK demonstrates the product’s ability to meet the requirements of banks with large retail operations around the globe. We are extremely pleased that IBK’s implementation of TEMENOS ™ CoreBanking enabled them to realise the benefits of the system upon going live.”
In partnership with IBM, TEMENOS™ CoreBanking is currently being implemented at Bank for Agriculture and Agricultural Cooperatives (BAAC) in Thailand and Bansefi (National Savings and Financial Services Bank) in Mexico.
-ENDS-
About Temenos
Founded in 1993, Temenos Group AG is a provider of integrated modular core banking systems to over 590 financial institutions in 110 countries worldwide. Temenos software provides banks with a single, real-time view of the client across the enterprise, enabling banks to maximize returns while streamlining costs. Whether providing 24/7 functionality to the wholesale, retail and private or universal banking sectors, partnering with central banks on core system replacement, or working with the World Bank on solutions for the emerging markets, Temenos knows banking. The company has a transparent approach to its operations and brings to bear its experience, expertise, commitment and professionalism on every project. Headquartered in Geneva, Switzerland, the company has 43 offices in 33 countries and is listed on the main segment of the SWX Swiss Exchange (TEMN). For more information please visit www.temenos.com
About Industrial Bank of Korea (IBK)
Industrial Bank of Korea (IBK) is one of Korea's leading banks, with the public policy role of promoting growth among Korea's small and medium-sized enterprises (SMEs). Established in 1961 under the Industrial Bank of Korea Act by the Korean government, IBK is involved in many business areas including SME lending, household lending, deposit taking, credit card services, electronic banking, venture capital, and trust account management.
IBK has 11 regional headquarters and 391 branches located in Korea. Internationally, IBK has operations located in New York, Tokyo, Hong Kong, Tianjin and Qingdao. Industrial Bank of Korea is one of Korea's largest banks with approximately US$5.3 billion in revenues, US$2.88 billion in capital and US$59.8 billion in assets at 2003 year-end.
About IBM
IBM is the world's largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key Business Partners, IBM offers a wide range of services, solutions and technologies for large and small customers. For more information about IBM, visit http://www.ibm.com
For more information, contact:
Max Chuard
Temenos Director
Corporate Finance & IR
Member of the Executive Board
Tel: +41 (0) 22 708 1157
Email: mchuard@temenos.com
Ben Robinson
Temenos Investor Relations Manager
Tel: +44 (0) 207 290 3012
Email: brobinson@temenos.com
Bianca Morgan
Temenos PR Manager
Tel: +44 (0) 207 423 3751
Email: bmorgan@temenos.com
Chris Patmore
Team 660
Metia for TEMENOS
Tel: +44 (0) 20 3100 3596
Email: chris.patmore@metia.com