Oracle Customer Success — Chinae Savings Bank Co., Ltd.

Chinae Savings Bank Co., Ltd.

Chinae Savings Bank Processes Credit Transactions 3x Faster, Enhances Data Security, and Supports Business Development with Engineered System

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Thanks to Oracle Exadata and Oracle Advanced Security, we gained a high performing, secure, stable, and scalable next-generation retail banking system, enabling us to respond faster to customer inquiries and support business expansion. We now process credit transactions 3x faster, have enhanced security for sensitive customer information, and ensured compliance with Korean regulatory requirements.

— Won Joon Cho, Information Strategy Headquarters, Department Head, Chinae Savings Bank

Established in 2012, Chinae Savings Bank Co., Ltd. (Chinae) was the nation’s first savings bank offered loan products with interest rate less than 30%. Today, Chinae is a South Korean financial institution that operates a network of 14 bank branches and offers internet banking, smart phone banking, and ATM service.
 
As a subsidiary of KC Card, Chinae strives to be a trustworthy financial institution and improve profitability by developing a next-generation retail banking system based on the expertise in credit evaluation and credit management at the J Trust Group, the holding company for KC Card. Thorough compliance is a management priority, and Chinae has an agent in each branch to supervise compliance requirements and provide ongoing compliance training to the agents. Chinae also contributes to economic development in South Korea by meeting the financial needs of local consumers and midsize companies.
 
Challenges
  • Improve risk analysis and credit management by enabling bank employees to rapidly access customer credit data, such as loan amount and credit rating, and ensure timely updates to the account and customer information management systems
  • Enhance data integrity and support business development through acquisitions by implementing a high-performing, stable, and scalable retail banking system 
  • Strengthen security for customers’ personal information, such as bank account details and home address, and prevent malicious attacks and data breaches to ensure compliance with stringent Korean Personal Information Protection Act requirements
  • Ensure rapid deployment to minimize disruption to daily financial and credit operations, such as credit application reviews and accounts receivables management
Results
  • Processed credit-related transactions 3x faster—from 200 transactions per second to 660 transactions per second—by using Oracle Exadata Storage Servers to enable faster response to customer inquiries or credit risk analysis such as overdue loans or repayment history, enabling the bank to approve more new loans or loan extensions
  • Improved staff productivity by providing accurate and consistent account information and allowing managers to rapidly analyze customer situation, including missed or overdue payments, and delegate credit management tasks evenly amongst team members based on customer risk
  • Deployed the new retail banking platform in just five months by using a pre-configured and pre-tested Oracle Exadata Database Machine to accelerate data transfer between core banking and information system and external system for Korea Federation of Savings Bank by 5x—in just four hours instead of 20 hours—and complete data verification within 40 days
  • Ensured smooth banking operations by configuring the database for core banking and information system into active/active structure, which enables automatic failover and protects against database failures and site disasters
  • Supported business expansion by using Oracle Exadata to easily accommodate data growth, such as internet and mobile transactions, and any size workloads, ensuring scalability and avoiding bottlenecks
  • Tightened data security by using Oracle Advanced Security to limit exposure of sensitive customer information during online transactions, preventing unauthorized users from hacking or viewing sensitive data, including bank account numbers
  • Ensured compliance with stringent Korean regulatory requirements, thanks to Oracle Advanced Security’s transparent data encryption and data redaction capabilities that enable consistent data protection
  • Minimized system performance issues by introducing Oracle Advanced Security to enable data redaction directly in the database operation system, avoiding negative impact on response time and CPU utilization rate
  • Reduced implementation costs by upgrading the database server without the need for a separate data encryption agent or changes to application code
  • Made it easy to train internal developers on the new database platform, thanks to a reputable and familiar Oracle-based solution

Why Oracle

After conducting benchmark testing, Chinae selected Oracle Exadata because it demonstrated superior performance and reliability over competing solutions, enabling the bank to improve work efficiency and support business development.
 

We were convinced that Oracle Exadata was an ideal choice for our next-generation retail banking system because of Oracle Database’s reputation in the financial services industry and strong referrals from other Oracle customers. We also introduced Oracle Advanced Security because it allowed us to install the encryption solution without making changes to application code, enabling us to meet compliance requirements and reduce implementation costs.

— Won Joon Cho, Information Strategy Headquarters, Department Head, Chinae Savings Bank

Execution

Chinae first implemented Oracle Exadata for its core account system, including credit application reviews, consultation management, and debt management, and completed the deployment in just five months. The bank then deployed Oracle Exadata for other non-core applications, such as its customer information system. Chinae went live with the next-generation retail banking system in nine months.

About Chinae Savings Bank Co., Ltd.

Headquarters

 
Seoul, Korea

Employees

 
484

Annual Revenue

 
$500 Million to $1 Billion

Partners

Chinae engaged Oracle partner, Daewoo Information System Co., Ltd. to manage the next-generation retail banking project and Sun Tech Co., Ltd, to install Oracle Exadata.
 
“With the wealth of experience and knowledge that both partners delivered, we completed the project on time. As important, we gained a high-performing and reliable database platform and minimized disruption to our business,” Won said.
Published:  May 14, 2015