With 37 domestic banks, and a host of new digital-only players entering the scene, Taiwan is one of the most crowded banking markets in Asia. So how do incumbent financial service providers protect their hard-won market share and increase their profitability? For Bank SinoPac, digital transformation holds the answer, helping the mid-sized player to punch above its weight and win 3.71 million customers.
Since 2012, Bank SinoPac has used Temenos T24 Transact as its global core banking platform, underpinning its operations in its primary market in Taiwan, and helping it to build an overseas presence in Hong Kong, China, Macau, Vietnam and even the United States. As it looked to consolidate and expand its position, the bank wanted to ensure it had the capabilities to innovate and continue to deliver exceptional customer service
Embracing new innovations
To achieve these goals, Bank SinoPac initiated an upgrade project, moving from its original R10 version of Temenos T24 Transact to the latest R18 release, along with a modernization of its underlying database, operating system, and servers. By making the switch to the newer version of the core platform, the bank aimed to take advantage of improved performance and the latest digital functionality.
Mr. Coolson Shen, Project Manager at Bank SinoPac, explains: “One of the most impressive aspects about working with Temenos is that there was a clear upgrade path mapped out when we first implemented the solution. When we kicked off the project, a key target was accelerating our close of business [COB] processes, as well as introducing the latest modules for product development. We were also excited to gain access to Temenos Marketplace, and the third-party fintech solutions it offers.”
Sailing through the implementation
Having built up a strong knowledge of the core systems over the past seven years, Bank SinoPac took the lead on the upgrade project. The bank called on expert support services from Temenos to help tackle any problems that it encountered. As well as moving to the R18 version of Temenos T24 Transact, the bank moved to new versions of Microsoft SQL Server and Windows, as well as modernizing its server and storage landscape.
“We went live on the new version after just ten months, which was an excellent result and right on our schedule. Moving through so many releases meant that it was a complex and challenging project, but working with the expert resources provided by Temenos kept things moving forwards and ensured a successful outcome. We have a close working relationship built on mutual trust and collaboration.”Mr. Coolson Shen, Project Manager
Transforming internal operations
With the completion of the platform upgrade, Bank SinoPac achieved its goal of improving the performance of its core banking systems and significantly reducing the time required to complete COB processes. Previously, these workflows took four and a half hours to complete—now, with the R18 version of Temenos T24 Transact, Bank SinoPac handles COB tasks in just two hours.
“The acceleration in our COB processes has been the biggest win for us following the upgrade. With the R18 version, we have reduced the time to complete COB by 56%, which represents an exceptional outcome. Our users are no longer tied up with data extraction and have more time to concentrate on valuable tasks, such as identifying opportunities to improve our quality of customer service.”Mr. Coolson Shen, Project Manager
Mr. Coolson Shen adds: “Adopting a modernized technology stack, from our database to core platform, has helped us to reduce risk in our IT environment and cut our overall costs. We are no longer reliant on less stable, older systems that will soon approach end-of-support, nor do we have to spend so much on maintenance.”
Through the upgrade to R18, we reduced our costs by 60 %
Accelerating product innovation
In the next phase of its digital transformation, Bank SinoPac will implement new functionality on the Temenos core platform, including introducing updated Arrangement Architecture modules. These steps will enable the bank to develop innovative new products and services, and bring offerings to market faster across its global operations, ensuring it continues to expand its customer base.
In particular, the Bank Sinopac team is excited to take advantage of access to near-real-time data when it completes phase two of the transformation project. Previously, the bank only had access to information from the previous working day; soon, it will be able to extract more relevant data, which will help it to perform more in-depth analytics and make smarter, more timely business decisions.
“Our upgrade of Temenos T24 Transact represents the latest step in a long and profitable partnership. As the banking sector in South-East Asia grows more competitive, Temenos gives us the tools that we need to continue to thrive and deliver a consistently high quality of service to our many customers in Taiwan and beyond.”Mr. Coolson Shen, Project Manager