The number of new members surpassed 100,000 within the fourth day of launch, and issuing of receiving accounts and check cards has also been flying smoothly. The distribution of customers seems stable as 70% of the new customers are in their 30s and 40s. Furthermore, it has reported that the initial position of the Internet-Only bank has been successful since the transactions after business hours of the workers, 6:00 pm, are actively occurring.
And the successful launch of K-Bank has some significant implications for the Korean financial IT market structure.
Stable Computer System Dispels Worries
First, it is highly evaluated that there are no errors or failures in computing system since the official opening of the K-Bank. All transactions, including the opening of a new account, has been moving smoothly through online, meaning that the IT infrastructure of K-Bank has been deployed stably and detailed.
In the late 2015, concerns were raised in the financial IT industry even when K-bank received a preliminary approval from the Financial Services Commission and was preparing to construct a computerized system.
No matter how fast the progress is done, it seemed impossible to complete the general system of online bank’s core banking system, information system, and the external system only in one year, including the test until it becomes stabilized.
Of course, it is hard to directly compare the business size of Internet-Only banks and other commercial banks, but the construction period of the next generation system of other commercial banks is at least two years including the test period. The case of K-Bank will be an important reference for those next generation financial system projects in Korea.
Who took part in system construction… Re-evaluation of the construction method
Also, with the success of K-Bank, IT companies that participated in this system construction are expected to increase their stature.
K-Bank’s computer system construction project was a way in which four companies took charge of their respective businesses in their respective fields. This was a completely different way from the previous next generation projects that one company usually oversees the entire business.
Previously in domestic field, the large IT service companies took part as the main operator in the project. However, it is possible to consider the each specialized companies for each systems shares the roles and the client signs the contract in accordance with the work as the case of K-Bank from so on. Of course, this requires precise project management skill.
If one closely observes K-Bank project, Bankware Global, a specialized core banking system provider, was responsible for core banking system that implements loan, receiving, and foreign exchange transactions. KT DS carried out the information system which is responsible for analyzing customer information, evaluating credit, and evaluating the risks.
In addition, INITEC, a subsidiary of KT, executed the channel system on the other hand, Woori FIS, a subsidiary of Woori Bank, executed IT infrastructure. E&Y Han Young took part as PMO for project management.
Bankware Global that Implemented the ‘Core Banking’ Strengthens Market Position, Gained “the Greatest Benefit”
Bankware Global, a banking software company, is the most notable among the participated companies in K-Bank project. It gained the first reference in core banking system area with this K-Bank project.
In the meantime, ‘BaNCS’, developed by Tata Consultancy Services from India (provide as ‘BANCS-K’ by CUROCOM in Korea) and ‘Pro-Frame’ by TmaxSoft were competing in Korean next generation system project, but now it appears that Bankware Global joins the competition. Above all, Bankware Global is expected to greatly strengthen its position in the core banking package area, a ‘next-generation system’ for financial services in the future.
Bankware Global proceeded using its own core banking package (BX/CBP), product factory (BX/PF) and framework (BX/M) for about 11 months to implement on the K-Bank core banking system. For external system, Bankware Global completed implementing based on TmaxSoft’s “Anylink”. Bankware Global will continue to operate and maintain K-Bank’s core banking system.
The main feature of Bankware Global’s Core-Banking Package (CBP) is to expand business while minimizing the influence of existing programs. Since it applies object-oriented design based on Java language, it is possible to develop in forms of plug-and-play when adding a new service. It is possible to develop a product rapidly without change in business rules and Database.
With 330 employees, Bankware Global is already a famous company in China. Its main strengths are banking software and IT Service. KyungJo Lee, former vice-president of IBM Korea, is leading the company. Earlier in 2015, BwG participated in the core banking system project of MyBank, an affiliate company of Alipay from China, and succeeded in attracting investment from the Alibaba Group.
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