Shinhan Card Implements Next-Generation Core Banking System—Introduces New Products 4x Faster and Expands Customer Base
 
 

Shinhan Card Implements Next-Generation Core Banking System—Introduces New Products 4x Faster and Expands Customer Base

Shinhan Card Co., Ltd. (Shinhan Card) is the largest credit card issuer in South Korea. Ranked first for consumer satisfaction awards in the credit card category for the last two consecutive years, the company has approximately 15 million active cardholders and processes US$120 billion in transactions annually.

Following its merger with LG Card on October 1, 2007, Shinhan Card set strategic corporate goals to prioritize customer values and business growth.

 
 

 
 

Challenges

A word from Shinhan Card Co. Ltd.

  • “We chose Oracle’s solutions for their stability and high performance to fulfill Shinhan Card’s business vision to improve customer satisfaction and operational efficiency. We have introduced new products 4x faster, increased the number of credit card memberships, and greatly improved customer satisfaction.” – Nam Seung-woo, Managing Director, CIO, Shinhan Card Co., Ltd.

  • Accelerate new financial products, including a monthly installment plan and tying in these products with insurance offering to maintain a competitive edge
  • Centralize systems to reduce costs and ensure enterprisewide visibility
  • Consolidate number of IT-vendor partners to reduce complexity and streamline IT management
  • Provide consistent and highly responsive customer care for 15 million credit card customers

Solutions

  • Introduced new products 4x faster—in two to three weeks instead of two to three months—with the ability to base products on previously stored data regarding customer requirements and company policies
  • Improved customer satisfaction by personalizing and expediting service through a single customer view, ensuring immediate responses to customer requests
  • Expanded membership base by minimizing the time to respond to customer requests through real-time data analysis  
  • Provided 24/7 support for business-critical processes, such as issuing credit cards, installment financing, and accounting by using Oracle Real Application Clusters for high availability
  • Improved ability to respond to market changes and capitalize on new opportunities by leveraging a prevalent workforce trained in UNIX-based systems and by being freed from an inflexible mainframe
  • Established a fast, secure, and stable real-time recovery system by using Oracle GoldenGate to synchronize marketing data used for promoting new credit card products to customers
  • Achieved accurate profit-and-loss predictions through profitability analyses, based on accurate data collected during the product development phase
  • Improved labor pool by staffing for Oracle and JAVA experts, rather than for DB2 and COBOL personnel, making it easier to recruit team members and maintain the core banking system
  • Enhanced interdepartmental collaboration, such as managing customer complaints and product development by using Oracle Business Process Management Suite to eliminate communication barriers through discussion forums and message boards
  • Created a highly scalable IT infrastructure that will support rapid and sustained company growth
  • Ensured system stability and reliability with Oracle Enterprise Manager 12c and Oracle Database Lifecycle Management Pack by increasing business visibility through automated IT management processes and by reducing the management burden

Why Oracle

After deciding to switch from a mainframe to a UNIX-based system, Shinhan Card needed a flexible data infrastructure that offered better stability and support for its next-generation business information system.

Shinhan Card chose Oracle Database over IBM for its low system load and high performance, online transaction processes. Furthermore, the switch would seamlessly integrate with the company’s other Oracle-based environments, including its website, which runs on Oracle Database. Similarly, Shinhan Card chose Oracle GoldenGate over Informatica for its interoperability with Oracle Database and its in-house Java application, providing unparalleled data integration and replication capabilities.

Finally, Shinhan Card implemented Oracle Business Process Management Suite to fulfill the company’s business vision. “Oracle’s Business Process Management Suite is a completely integrated solution that can help us deliver our business values through a service-centric framework to enhance customer service and operational efficiency,” said Nam Seung-woo, managing director, CIO, Shinhan Card.

Implementation Process

Shinhan Card, in cooperation with Oracle partner LG CNS, adopted a big-bang approach, retiring the legacy system upon roll out of Oracle Database, followed by Oracle Enterprise Manager 12c, Oracle Database Lifecycle Management Pack, Oracle GoldenGate, and Oracle Business Process Management Suite. The new system went live on October 2, 2012.

Shinhan Card jumpstarted use adoption by providing comprehensive internal user training in tandem with the system implementation.

Partner

Shinhan Card engaged Oracle partner LG CNS for its core banking implementation in the next generation project. LG CNS utilized its experience in system maintenance and system integration and provided support for workload analysis, system design and development, and product performance testing.

“LG CNS has successfully performed large-scale financial IT projects, including the integration of Shinhan Card and LG Card Systems. With the group’s support, we could complete the new big-bang system implementation smoothly and on time,” said Kim Jae-eok, deputy director, Datacenter Relocation Task Force Team, Shinhan Card.