Raising the bar
An examination of how – through early adoption of modern core banking software and clear strategic planning – Bank of Shanghai has readied itself for, and is already exploiting, the significant changes taking place in the Chinese banking market.
Introduction
Bank of Shanghai (BOS) was established in December 1995. As a City Commercial Bank, it was set up to support the development of the local economy, serving primarily Small and Medium sized Enterprises (SMEs) and individual citizens in and around the city of Shanghai.
However, the booming national economy, combined with mass urban migration, have created the conditions for accelerated growth in the Chinese banking sector and, like many peers, BOS is keen to exploit these conditions to expand its business and extend its reach outside of its home base.
But, given the Chinese national government is deregulating and internationalising the market, competition is increasing at the same time as the demand for banking services accelerates. Bank of Shanghai appreciated this when it made the decision to replace its core banking system, recognising that in order to capitalise on the opportunities available, they needed a modern, flexible banking system to give them the required agility to compete.
In 2002, Bank of Shanghai undertook a selection process that evaluated the option of an internal build alongside the option of taking a packaged solution from an international or local vendor. In the end, the bank’s desire to adopt global best practices saw it sway in favour of an international solution. Among the systems considered, TEMENOS T24 (T24) emerged as the bank’s preferred solution, based on customer references, level of integration, implementation record, functional coverage and strength of business processes.
Following a complex implementation, involving high levels of localisation and process reengineering, the project was delivered fundamentally on time and on budget. The project was started in 2004 and T24 went live across BOS’ corporate banking business in 2006 and its retail business in 2008.
With the new banking platform now mature, post implementation, Ben Robinson, Director of Strategic Planning at Temenos, has conducted a detailed study to understand the impact T24 has made to the business for this leading regional bank.
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