Shinhan Card Gains Competitive Edge, Increases profitability, and Improves Total Month-End Accounting Efficiency by 40%
 
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Shinhan Card Gains Competitive Edge, Increases profitability, and Improves Total Month-End Accounting Efficiency by 40%

According to industry statistics, Shinhan Card Co., Ltd. (Shinhan Card) is the largest credit card issuer in Korea. For the last two consecutive years, the company has ranked first in the Korea customer satisfaction index for the credit card category, processing US$120 billion in transactions, annually.

Shinhan Card wanted to improve the reliability and performance of its IT infrastructure and provide more timely reports to improve responses to changing customer requirements in the credit card industry. In addition, each department—including marketing, credit, and bond accounts—had created its own data mart, resulting in increased data duplication, storage requirements, and costs.

In February 2011, Shinhan Card deployed its enterprise data warehouse on Oracle Exadata Database Machine. The company gained real-time visibility for its profitability forecasting model and marketing promotions, completing the total calculations for monthly account closing and profitability analysis 40% faster. Finally, the company reduced data duplication by up to 36% and cut long-term storage costs and requirements.

 
Closing Monthly Accounts and Accelerating Profitability Analysis 40% Faster

A word from Shinhan Card, Co., Ltd.

  • “We chose Oracle Exadata Database Machine and Oracle GoldenGate over Teradata products because Oracle demonstrated much better results in compression and performance, and it enabled us to gain faster business intelligence and maintain our competitive edge. We improved total month-end accounting efficiency by 40%, accelerated data loading by 70%, and cut long-term storage requirements.” – Seungwoo Lee, Director, Management Information Team, Shinhan Card Co., Ltd.

Shinhan Card, like many large companies, wanted to accelerate its monthly account close process to ensure a more accurate and timely performance snapshot and support faster decision-making. 

With Oracle Exadata Database Machine, the company cut its monthly account closing period from approximately six days to just under four days—33% faster. It also reduced the total calculation period for monthly account closing and profitability analysis by about 40%—from 10 days to 6 days, driving more timely insight into daily business performance.

 
Gains Real-Time Visibility to Profitability Forecasting Model

 
Improves Credit Sales Approval Loading Time by More Than 70%

 
Establishes Single View of Data Mart and Reduces Data Duplication by up to 36%

 
Enhances Compression Efficiency to 73% and Saves Storage Costs

 
Extending Benefits Across the Enterprise

 
 

 
 

Challenges

  • Implement a next-generation information system to improve data-processing speed and support faster decision-making 
  • Centralize the data mart across the enterprise and eliminate data duplication and redundancy
  • Provide real-time data updates by synchronizing the customer account system with marketing activities for faster responses to changing market trends and maintain a competitive edge
  • Optimize storage investment as data continues to grow by 20%, annually

Solutions

  • Deployed Oracle Exadata Database Machine and gained the ability to close monthly accounts in under four days instead of six days—33% faster
  • Reduced the total calculation period for both monthly account and profit-and-loss statements 40% faster—from 10 days to 6 days—driving more timely insight into daily business performance
  • Enabled real-time profitability forecasting for individual credit card products, merchants, and product marketing instead of taking 30 minutes, helping executives to make quicker decisions, based on a full view of company profitability by implementing Oracle Exadata Database Machine
  • Cut the daily loading and calculation processes by four hours before start of business at 8 a.m. rather than noon, enabling staff to use updated data for tasks and decision-making during business hours
  • Gained the ability to complete domestic credit sales approvals in 50 minutes instead of three hours, and generate daily sales receipt confirmation in 30 minutes instead of four hours, and enhanced batch processing time by 2x to a maximum of 120x to improve customer satisfaction
  • Provided executives with sales updates, based on the previous day’s data instead of data that is two days old, driving more informed decisions and responsiveness to market changes
  • Reduced data duplication up to 36% by establishing a single view of data marts and allowing different departments to share common modules
  • Enhanced data compression efficiency to 73% and reduced costs for long-term storage expansion by implementing Oracle’s Advanced Compression and Exadata Hybrid Columnar Compression
  • Increased business opportunities by synchronizing marketing activities with the customer account system through Oracle GoldenGate, enabling real-time promotions by using continuously updated information in the customer account system
  • Improved staff productivity by making it easier to manage the work level and status for more than 20 developers by using Oracle Enterprise Manager

Why Oracle

Shinhan Card wanted to upgrade its information system, as there was a limit to expanding its legacy system, which caused significant delays in processing more than 22 million credit and debit card holders’ data every day.

“We chose Oracle Exadata Database Machine and Oracle GoldenGate over Teradata products because Oracle demonstrated much better results in compression and performance efficiency, and it enabled us to create a real-time marketing environment for our next generation information system.” said Lee.

Implementation Process

Shinhan Card worked with partner LG CNS to implement two Oracle Exadata Database Machine Full Rack systems and two Half Rack systems, Oracle Golden Gate and Oracle Enterprise Manager 12c for its next-generation project. The company adopted a big-bang approach for the project and upgraded all the information systems, such as account approval systems.

The new system went live, having been deployed on time, on October 2, 2012. It is operating without any problems and maintaining a stable operation.

Partner

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

“We have confidence in LG CNS, as it has good experience in performing large-scale financial IT projects. We completed the next-generation project on time because of its full cooperation and deep understanding of how Oracle solutions could help us to achieve a cost- effective and high-performance data infrastructure,” said Lee.