August 1, 2018 | Written by: Adam Jollans
Categorized: Banking | Client Stories | FinTech
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Many banks and financial services are starting or continuing their transition to a customer-centric model of doing business. To do this, companies are rigorously evaluating the right systems and processes needed to support their transformation. These new systems need to handle very large and variable workloads, with strong security and cost-efficiency. But it’s not a one-size-fits-all solution. Companies need systems that can deliver great performance, stability, availability, and can scale with their demands.
Banking reimagined with IBM
Techcombank, one of Vietnam’s leading commercial banks, was looking for a system that could help them build a bold new approach to banking. Vietnam ranks as one of the fastest-growing economies in Southeast Asia, with a large and growing middle and upper income population. Still, financial inclusion remains low, as 65 percent of the adult population in Vietnam does not have a bank account. To attract this massive potential customer segment, Techcombank knew they had to go further than simply offering traditional products and services; they needed a differentiated banking experience that fit modern customer needs and lifestyles. To achieve this, Techcombank needed to not only transform its IT infrastructure, but they needed the new infrastructure to change the mindset of their IT department, including how they thought about and worked with technology.
30 percent improvement made the data more readily available for reporting, empowering business users with the up-to-date figures.
Moving away from distributed infrastructure to LinuxONE
Techcombank implemented two IBM LinuxONE Emperor II servers, running Red Hat Enterprise Linux. The bank then started the ongoing process of migrating its Temenos core banking systems, the supporting databases, and other production workloads to the new platform. Moving their core banking and other Tier-1 systems to IBM LinuxONE is expected to reduce total cost of ownership by around 44 percent. In addition, Techcombank improved their capacity to absorb dynamic workloads without compromising on normal production performance as transaction increased to four times their normal daily levels. Techcombank was also able to significantly shorten batch processing times from eight hours to five and a half hours. This 30 percent improvement made the data more readily available for reporting, empowering business users with the up-to-date figures they needed to make sound decisions.
Shifting the mindset of your IT department
This new technology also helped bring about a shift in the mindset of Techcombank’s IT department. The switch from their traditional, distributed architecture to the new IBM platform allowed their team to simplify and improve their approach to IT. And with the savings from their infrastructure transformation, Techcombank was able to reinvest in innovation, so that the IT department could continue to focus on bringing to customers new offerings like internet banking, mobile banking, and SMS banking—all a first for the country. LinuxONE helps Techcombank’s IT department stay prepared to evaluate, implement and handle new banking services while scaling to meet their customers needs.
Taking the next steps with IBM banking infrastructure
With IBM LinuxONE systems, Techcombank can scale and grow as demands increase, giving the bank more room for rapid expansion. They can simply activate additional cores or memory, without having to worry about the underlying architecture. Recently, their transaction volume and value of their e-banking services increased at a compound annual growth rate of 107 percent and 129.6 percent, between 2015 and 2017, respectively, and this new system gives Techcombank the ability to generate more capacity and memory on demand so they can seamlessly accommodate increased request from their customers. Want more information on Techcombank’s transformation? Read the entire Techcombank case study. Learn more about IBM solutions for banking.