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The tremendous economic developments in the Greater China region have brought both challenges and opportunities for the financial services industry. Intense competition and pressure to generate reasonable profitability with acceptable risk profiles have forced many institutions to rethink their model of growth. New business models, customer relationships and IT systems must keep up with the demands of the sophisticated global marketplace.

Financial institutions need to review and upgrade their IT infrastructures and systems to compete more effectively by boosting speed to market, which demands an efficient rollout of banking services. Key to meet this challenge is a service provider strong in technical expertise and local financial practices, making PCCW Solutions the ideal choice.

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Bank of Shanghai (Hong Kong) Ltd. is a locally incorporated restricted licensed bank in Hong Kong offering corporate banking since 2013.

For establishing its presence in Hong Kong, Bank of Shanghai (Hong Kong) needed to design and build a new ICT system from the ground-up – its back-end infrastructure, network connectivity and applications management.

Download the case study to learn how PCCW Solutions enabled Bank of Shanghai (Hong Kong) to meet its tight deadline to deploy fully functional IT system for the new business operations.

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Great Wall Motor Company Limited is China’s largest SUV and pickup manufacturer. It was listed on the Hong Kong Stock Exchange in 2003 and the Shanghai Stock Exchange in 2011. By the end of 2013, its asset value had amounted to RMB 52.6 billion. Currently, Great Wall Motor owns two brands - Haval and Great Wall, which cover three categories including SUV, passenger car and pickup. With over 30 holding subsidiaries, more than 60,000 employees and four vehicle manufacturing sites, the company has developed its independent matching capacity of core parts such as engine and transmission. In June 2014, Great Wall Motor established Tianjin Great Wall Binyin Automotive Finance Company Limited, providing automotive financing business such as retail financing for customers and wholesale financing for automobile dealers.

Challenges

Great Wall Motor needs to establish an advanced and efficient wholesale inventory financing system platform for its subsidiary, Tianjin Great Wall Binyin Automotive Finance Company Limited to rapidly provide the financing service for automobile dealers, accelerate business transaction, prevent financial risks and exploit market potential.

Solutions

PCCW Solutions developed and implemented the application software system for Tianjin Great Wall Binyin Automotive Finance Company Limited’s wholesale inventory financing business to meet the requirements of the business development and achieve seamless integration with external banking system as well as the internal retail financing system and financial system, vehicle sales system and other related systems.

Value Created

The new system can support Great Wall Motor’s more than 2,000 ports of its 1,000 automobile dealers to develop the wholesale inventory financing business and meet the needs of daily operations. These can help boost the vehicle sales, quickly respond to new business launch and prevent financial risks.


Genius Auto Finance Company was established in August 2015. It is a joint venture company owned by Geely Automobile Holdings Limited and BNP Paribas Personal Finance with headquarters in Shanghai, China. Genius Auto Finance provides professional auto financial products and services in the China market, which include providing financing solutions for dealers’ auto procurement and operational needs (i.e. wholesale financing) and providing financing services to consumers for auto purchase (i.e. retail financing).



Challenges

Genius Auto Finance is a foreign-funded enterprise with international presence. In order to provide auto financing services to consumers during their purchase with dealers, Genius Auto Finance requires a retail credit system to meet its operational needs and prevent financial risk.

Solutions

PCCW Solutions, a renowned IT solutions provider for financial services industry in China, has supported several leading auto corporations to develop and implement auto financial system in recent years. The retail credit system developed for Genius Auto Finance is an advanced version based on previous development in terms of business model, business process, project specification, etc. This innovation system again demonstrates PCCW Solutions’ rich expertise and experience in providing IT solutions to the auto finance industry.

Value Created

The retail credit system enables Genius Auto Finance to deliver a more secure, professional and convenient one-stop service experience of auto finance, at the same time, enhances dealers’ operational efficiency and maximize revenue.


Chengdu Rural Commercial Bank Co., Ltd. was established in 2010; its registered capital in 2011 was RMB 10 billion, ranked No. 1 in all rural commercial banks nationwide. By the end of 2013, its total asset value had amounted to more than RMB 420 billion. Currently Chengdu Rural Commercial Bank has established 643 subsidiaries, including branches in Dazhou, Suining and Ziyang of Sichuan province, and 39 Zhongcheng Village Banks in other provinces and cities. Its business coverage keeps expanding and its influence in the region continues to increase.

Challenges

Facing increasingly intense competition in domestic and foreign financial market, Chengdu Rural Commercial Bank needs to build an efficient core banking system to meet the growing needs of strategic business development and management, achieve the seamless interaction among existing banking systems and maintain the system stability.

Solutions

PCCW Solutions offered Chengdu Rural Commercial Bank a total solution for village banking IT system, which is based on the self-developed next-generation core banking solution – iVisionBanking. The new solution comprises core banking system, credit system, data center, regulatory reporting and counter system, etc. iVisionBanking’s advanced design on product factory, charge factory, interest rate model and customer orientation will ensure Chengdu Rural Commercial Bank to sustain its leading position in the process of marketization of interest rate, charge rate and exchange rate.

Value Created

With the new banking system, Chengdu Rural Commercial Bank can rapidly drive market-oriented product innovation as well as offer differentiated and personalized financial service for their customers. This system also provides strong technical support in the areas of business model optimization, rapid products update, risk management level improvement and precise management.


To enhance its operational efficiency and support future business expansion, The Bank of East Asia ("BEA") opened BEA Tower in Hong Kong's Kwun Tong district in 2005. PCCW Solutions was chosen by BEA to design and build a 10,000 sq. ft data center inside the new, state-of-the art facility. The new data center hosts BEA's mission-critical applications, which support more than 120 branches and SupremeGold Centres throughout Hong Kong.

BEA's world-class data center has adopted the BS7799 security standard and has been equipped with advanced features, such as an independent power supply and fire suppression system. A seamless network equipped with system redundancy, BEA's data center helps ensure uninterrupted connectivity, which in turn allows BEA to focus on its core business, and on serving its customers.

To meet growing market requirements and the bank's increasing customer base, Dah Sing Bank (DSB) has deployed a state-of-the-art extensible Enterprise Application Integration (EAI) platform. The new Enterprise Middleware System (EMS) is based on Service Oriented Architecture (SOA). PCCW Solutions is responsible for the overall project management, implementation and quality assurance of this new platform.



Solutions



By building SOA-based infrastructure, DSB will enable different computing platforms using different sets of standard to interact, simplifying and speeding up product time-to-market. It will support the consolidation of two different technologies and skills sets from DSB and MEVAS bank.


By reusing available components and leveraging standards-based architecture, the bank will save on cost of business process improvement, and achieve quality through standardization. Because SOA can upgrade a service without taking down the system, DSB foresees overall system availability improvement. And since all traffic goes through SOA, the bank can generate consolidated view of customer activity which will serve as its basis for service and relationship enhancement.


Value Created




The team is confident that SOA will provide the bank a new paradigm in banking system to help unified infrastructure, enhance flexibility, maximize business values and increase competitiveness. Simplified application development means minimized system development cost and risk. It also empowers the IT team to develop system features that may be difficult to accomplish using conventional architectures. With more efficient IT operation and support, the bank can free up resources to further support the growth and development of new revenue generating services. 




Customer Endorsement



"When we decided to replace our CORBA middle tier, we chose PCCW Solutions as our application-outsourcing partner because of their expertise in this arena," said Thomas Ng, general manager for IT, Dah Sing Bank. "By engaging PCCW Solutions to build our Service Oriented Architecture, they saved us years of hard work to gain insights of the technology by leveraging what they had learned already," Ng added.






Background


In view of the growing acceptance of Internet banking services and sophistication of Internet banking frauds, the banking industry reached a general consensus in 2004 to strengthen the Internet banking security by implementing two-factor authentication. The Hong Kong Monetary Authority (HKMA) endorsed this consensus and issued a circular in June 2004 requesting banks to implement such security measure by June 2005 for high-risk retail Internet banking transactions.


In line with the HKMA's guideline, CITIC Ka Wah Bank (the "Bank") has adopted PCCW Solutions' OneKey - a highly sophisticated and secure authentication service to protect banking customers engaging in online banking transactions.


Challenges


CITIC Ka Wah Bank required a cost-effective solution to tackle the latest Internet banking frauds such as fraudulent bank websites and phishing emails. It has planned for a dual option two-factor authentication, allowing i-banking customers to use either Hongkong Post's e-Cert or SMS-based one-time password for conducting their high-risk online transactions. The Bank was facing a tight implementation deadline to launch the two-factor authentication by June 2005. It required a proven security solution that can be easily and quickly integrated with the Bank's existing i-banking system with minimal customization efforts. In addition, the security platform must be user-friendly and reliable.


Solutions


PCCW Solutions has helped CITIC Ka Wah Bank to successfully rollout the two-factor authentication service under the tight schedule. With the introduction of OneKey, a PCCW Solutions' self developed authentication solution that employs state-of-the-art security technologies, the Bank's Internet banking customers receive double protection by being assured that not only is their e-Cert verified but that the website they have logged onto is legitimate. OneKey greatly enhances security without compromising performance and ease of use. OneKey serves as a technology overlay to the Bank's existing i-banking platform. It does not, however, access the CITIC Ka Wah Bank's proprietary customer database so customer data privacy is protected.


PCCW Solutions had assisted Hongkong Post with the incorporation of e-Cert into Smart ID card and is familiar with the e-Cert and information security solutions. Our proven expertise makes PCCW Solutions a trusted partner in securing online transactions.


On top of OneKey solution, PCCW Solutions has also provided the necessary hardware and software for CITIC Ka Wah Bank to build the SMS one-time password system with the Bank's SMS Gateway.


Result


In June 2005, CITIC Ka Wah Bank launched its dual option i-banking two-factor authentication on PCCW Solutions' OneKey platform, allowing banking customers the flexibility and convenience of using either the Hong Kong Post e-Cert or SMS transaction passwords for conducting their online banking transactions in a secure Internet environment. The solution effectively minimizes online banking frauds.


Mrs. Lorainne Lam, Executive Vice President and Head of Retail Banking Group of CITIC Ka Wah Bank said, "In line with our business philosophy of always staying at the cutting edge of offering innovative solutions for our customers, we are very pleased to have selected PCCW Solutions as our technology enabler in this important initiative. The technology used in its OneKey Solution will be totally transparent to our customers, yet it can provide our customers with total confidence by frustrating any criminal attempts operating through the Internet. We are confident that this will encourage our customers to transact more via our i-banking services in future."


The increased peace-of-mind for Internet banking users can be expected to encourage wider adoption of online services of a financial nature, as well as bring benefits in many other areas of life.


Fidelity Investments Management (HK) Limited chose PCCW Solutions to design and develop a bi-lingual e-Mandatory Provident Fund (eMPF) system to allow business transactions to be implemented on-line by the customers through the Internet. The solution included the platform architecture design, set up and hosting, and the front end application design and development, and the user integration with the client's own back end systems.


Background


Hongta Securities Ltd. has 11 operating divisions. Its company headquarters and operating divisions rely on a virtual private network (VPN) for internal communication, while communication between online security business and headquarters is achieved via leased circuit to ChinaNet. Staff use ADSL dial up for Internet access.


Hongta Securities is expanding its network to support business growth, and network security has become a major focus. Hongta counted on PCCW Solutions' network resources, security technologies and services to deploy a full array of professional security solutions.


Challenges


The key challenges for Hongta Securities were:


  • Protect the network proactively

  • Identify and fix the security loopholes in the whole network

  • Increase the defensive ability against unauthorized intrusion

  • Protect against virus attack

  • Protect the security of data transmission


  • Firewall - protects against direct attack from Internet and control access to the network

  • Virus protection - protects against virus attacks for gateway, emails and host computers

  • Intrusion detection - immediately detects network loopholes and illegal attacks from Int ernet. This supplements the more reactive protection performed by the firewall

  • Identity authentication - effectively blocks out unauthorized usage and controls resources for authorized usage

  • Network management - monitors network status

  • Recovery services - provides 24x7 response services, which include rapid shut down of network after intrusion, intrusion analysis, deletion of damaged or illegal documents after attack, operation resumption and security strategy review


Result


Hongta Securities can now safeguard its network and platform, critical data and applications with the best IT security technologies and experience from PCCW Solutions.


"PCCW Solutions has played an important part in providing professional project management support to Hong Kong Exchanges and Clearing Limited (HKEx) to ensure Derivatives Clearing and Settlement System (DCASS) platform readiness. The DCASS project will upgrade the quality and operational efficiency of derivatives clearing and settlement. It will enable HKEx to better respond to the market challenges ahead."


Kwong Ki-chi,

previous Chief Executive of Hong Kong Exchanges and Clearing Limited


Background


HKEx brings together the market organizations that transformed Hong Kong's financial services industry from a domestically focused industry to the global player it is today. Since the launch of the first generation of the automatic order matching and execution system, PCCW Solutions has been working with HKEx to support its various systems.

Solutions


When the HKEx built the third generation of the automatic order matching and execution system (AMS/3), PCCW Solutions was chosen to develop and implement the Order Routing System, the Multi-Workstation System and the real-time AMS/3 trading network.


With increasing customer demands, HKEx must provide a seamless interface for trading and clearing. In 2001, HKEx selected PCCW Solutions to supply system hardware and software for the host-end platform to support the Derivatives Clearing and Settlement System (DCASS). Services provided include installation and configuration, planning, control and management of various implementation tasks.


DCASS is a fully electronic and automated clearing and settlement system capable of supporting different types of derivative products and trading environments.



Background


China Merchants Bank (CMB) was established in 1987. As well as a vast network in Shenzhen, CMB has branches in Shanghai, Beijing, Guangzhou, Shenyang, Chengdu, Hangzhou, Chongqing and more than 300 operation outlets throughout China. Network connectivity already covers every CMB office within the country. With its many operation locations, CMB needs a high-performance video-conference network to fulfill meeting and training requirements in a cost-effective manner. Riding on its extensive IP/video network experience, PCCW Solutions was chosen to develop a customized solution for CMB.


Challenges


CMB had very specific requirements for its video-conference network. The system needed to provide multipoint video-conference capabilities to its headquarters and 23 branches to accommodate conference requirements of 2,000 CMB employees simultaneously. Various departments within the bank were involved, such as IT, training and development, personal banking, corporate banking and accounting.

Solutions


PCCW Solutions designed and built an IP-based video-conference network system for CMB in only 20 days.


Not only did PCCW Solutions design and choose the most suitable terminal equipment for the customer according to practical situations, it also developed a user-familiar operation interface for CMB. Conference management is controllable remotely from any office via the IP network. The conference environment designed by PCCW Solutions fully meets today's international standards of video-conference systems. PCCW Solutions also assisted to optimize the existing IP network adopted by CMB so that the system could support data transmission requirements arising from company-wide video conferences and other business operations.

Result


The usage of the video-conference network remains high. It is used on a weekly basis within the company. Employees find the system particularly useful for the introduction of new products and services as well as simultaneous and consistent training. Senior management can now conduct video conferences with heads of various branches in a more efficient manner.


In normal operation, the requirement for IT or administrative staff is minimal. It further improves the operation efficiency of the system, while enabling face-to-face meetings and training.


Background


Due to changing regulations of foreign banks in China, Shanghai Commercial Bank sought to expand its business in China by setting up a branch in Shenzhen with full operations in the foreign currency banking business.

SCB needed a solution that addressed all immediate banking needs for foreign currency business operations within a short time frame, while combining system and support resources to form a cost effective solution that addressed future China operational needs.

The solution needed to be fully functional and China-ready, well proven in operation for foreign banks in China, with a high level of security and operational control while being cost effective. The solution also needed to be highly flexible and able to address and adjust to the ever changing market conditions and regulatory requirements in China, as well as scalable to support the expected growth in branches and business scope.


Solutions


PCCW Solutions designed and built an IP-based video-conference network system for CMB in only 20 days.


Not only did PCCW Solutions design and choose the most suitable terminal equipment for the customer according to practical situations, it also developed a user-familiar operation interface for CMB. Conference management is controllable remotely from any office via the IP network. The conference environment designed by PCCW Solutions fully meets today's international standards of video-conference systems. PCCW Solutions also assisted to optimize the existing IP network adopted by CMB so that the system could support data transmission requirements arising from company-wide video conferences and other business operations.


Result


Our total solution package for SCB boasts several key benefits. Among them is the low total cost of ownership of a world-class solution as the result of a modernized and high performance technology platform. The solution also provides a fast time-to-market with a comprehensive application suite that requires minimum effort and investment in enterprise integration, operation and maintenance. In addition, scalable architecture provides a highly reliable and efficient operating environment for seamless day-to-day mission critical operations. Above all, our solution provides a high performance, open and standardized system and networking platform based on solid benchmark tests and proven by 100 installations worldwide.


PCCW Solutions delivers a proven and comprehensive product suite that meets SCB's needs and supports future development directions and business growth.


PCCW Solutions developed Core Business System for Sino Life Insurance Company Ltd. This system includes new contract development, preservation, claim settlement, statistics, sales support and management, imaging, financial management, etc. It not only helps the customer to achieve centralized management of data and business operation but also standardizes various sales channels, such as insurance agents, group direct sales and banks. All these contribute to the establishment of a customer-focused, market-oriented, workflow-governed and business-driven business entity.


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