TEMENOS Group says Industrial Bank of Korea (IBK) – a lender to small and medium-size enterprises – has purchased its CoreBanking application.
Jointly implemented by IBM Korea and IBK, the new platform will operate in 391 branches throughout Korea, serving 10 million customers with 15 million active accounts. The IBK ATMs/CDs currently generate an average of 10 million transactions per day, peaking at 15 million. The peak average number of transactions per second exceeds 390.
Sir Jai-Hoa, general manager, IBK, says TEMENOS CoreBanking has enabled IBK to meet the government-mandated requirements to upgrade technology in the wake of the Asian Flu crisis of 1997-98. “Functional richness combined with the flexibility of its data model and component-based architecture,” are the chief benefits, he says. “The product development cycle has been reduced from 30 days to only 3.”
“Our partnership with TEMENOS enabled IBM Korea to deliver a Next Generation Banking System meeting IBK’s stringent requirements,” adds Ilman Chung, a partner at IBM BCS in Korea. “The new system replaced many in-house developed legacy systems. This Next Generation Banking System offers IBK the competitive advantage to remain the leader in the SME banking space for the foreseeable future.”
The full implementation was completed in just over two years. Temenos claims the IBK project is the first successful Next Generation Banking System implementation based on an international banking software package.
“The robust architecture of TEMENOS) CoreBanking system is credited for the timely implementation in IBK,” explains James Buckley, CoreBanking solutions director, TEMENOS. “The system is packaged to allow third party Systems Integrators, such as IBM Korea, to implement the overall core banking project.”
With the government owning 51% of the Bank, IBK complies with stringent capital coverage and risk management policies laid down by the Korean banking authorities. As a result, IBK has earned excellent credit ratings relative to its domestic peers.
Andreas Andreades, CEO of Temeno, says the IBK deal demonstrtaes the ability of the application to work in multiple jurisdictions. “We are extremely pleased that IBK’s implementation of TEMENOS CoreBanking enabled them to realise the benefits of the system upon going live,” he says.
In partnership with IBM, TEMENOS CoreBanking is currently being implemented at Bank for Agriculture and Agricultural Cooperatives (BAAC) in Thailand and Bansefi (National Savings and Financial Services Bank) in Mexico.