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.
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.
By implementing Oracle Exadata Database Machine, Shinhan Card can now apply a profitability forecasting model in real-time instead of taking 30 minutes. This enabled the company to expand analysis beyond credit card products to other business areas, such as analyzing the profitability of debit cards, business affiliates, and client marketing. Executives now have a complete view of company profitability for enhanced decision-making.
Shinhan Card was using a Sybase solution for its enterprise data warehouse and experienced substantial delays for daily loading and batch work. By implementing Oracle Exadata Database Machine, Shinhan Card can now complete loading tasks at 8:00 a.m., well before the start of business, instead of noon or later. This enabled the staff to use updated data for tasks and decision-making during business hours.
Prompt credit sales approval is important to domestic credit card business, and Shinhan Card now completes this process in 50 minutes rather than three hours. Once approval is completed, it now takes less than 30 minutes, instead of four hours, to generate a daily sales receipt confirmation. It also improves the speed of batch processing by a minimum of 2x and up to 120x. The faster loading time enables the company to promptly respond to customer requirements and increase customer satisfaction.
Efficient credit card billing balance loading is also vital to Shinhan Card because it strengthens the company’s credibility with its customers and reduces staff hours needed to process the balance.
“Today, we provide executives with sales updates based on the previous day’s data instead of two–day-old information—driving more informed decisions and responsiveness to consumer spending patterns and market trends,” said Seungwoo Lee, director, management information team, Shinhan Card.
Shinhan Card experienced difficulties in data management because each department created different data marts from enterprise data warehouse raw data. This resulted in serious data redundancy and duplication, slowed data processing time, and increased storage costs.
With Oracle Exadata Database Machine, Shinhan Card systemized refreshing its data marts by integrating and categorizing them into three levels: dimensions, common sales and credit, and specialized marts. The integrated data mart model allows the company to collect and analyze basic customer information, automatically sharing common modules based upon purpose, such as for profitability analysis, the campaign management system, and International Financial Reporting Standard compliance, rather than creating separate data mart for each department.
As a result, Shinhan Card gained a single view of data marts, rather than managing them separately in each department. This reduced data duplication by up to 36%. For example, the company reduced the number of duplicate general ledgers, from 5,460 to 3,531 by systematically refreshing its data mart using a model with an integrated view. It also saved costs for additional storage requirements.
Shinhan Card is experiencing exponential data growth, adding approximately 5 terabytes of data each month. As such, the ability to scale its data infrastructure cost effectively is critical. Using Oracle Advanced Compression and Exadata Hybrid Columnar Compression, the company is optimizing its investment and reducing future storage requirements.
“We are very impressed with Oracle solutions, which have exceeded our expectations. For example, Oracle Exadata showed 73% compression efficiency, when, during a test, it enabled us to optimize our storage investment and increase the data processing capability,” said Lee.
Implementing Oracle GoldenGate, Shinhan Card created a real-time marketing environment by synchronizing marketing activities with the customer account system. It enabled the company to endorse promotions in real-time, based on the updated information.
“For example, if a client uses a Shinhan Card to purchase air fare, we can instantly push travel-related products and information to the customer. This capability has significantly increased our business opportunities and improved our bottom line,” said Lee.
Shinhan Card also used Oracle Enterprise Manager 12c to monitor system performance and resource utilization in the database environment. The company can now easily manage the work level for more than 20 Shinhan Card developers, improving staff productivity despite exponential growth in customer data.
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.
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.
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.