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A Case Study: Citi-bank Asia-Pacific

A Case Study: Citi-bank Asia-Pacific. Agenda. Background Problems Strategies Implementation Conclusion. Background. Large third-world loan portfolio Commercial property loans Slowdown in revenue growth. Vision. Meeting customers needs Having financial strength

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A Case Study: Citi-bank Asia-Pacific

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  1. A Case Study: Citi-bank Asia-Pacific

  2. Agenda • Background • Problems • Strategies • Implementation • Conclusion

  3. Background • Large third-world loan portfolio • Commercial property loans • Slowdown in revenue growth

  4. Vision • Meeting customers needs • Having financial strength • Marshalling human and technological resource more imaginatively and cost-effectively than competitors

  5. Strength • Global presence—network banks in more than 90 countries. • Growing overseas consumer banking

  6. Status in 1991 • Asia +400 millions • US –894 millions • Europe, Africa, and the Middle East +132 millions

  7. Asia growth • Consumer deposits 13.6 billion (6 times growth 1983-1992) • Loans 10.3 billion (7 times growth 1983-1992)

  8. Asia divisions • North: Korea, Taiwan, Hong Kong, and the Philippines. • South: Thailand, Malaysia, Singapore, Indonesia, and Australia. • Central Europe/Middle Eastern: India, Pakistan, Saudi Arabia, United Arab Emirates, and Eastern Europe.

  9. Changes • Continuing growth in the consumer banking area through global expansion and leveraging IT. • Serving customers anywhere, anytime with the same high standard of service that they receive in their home countries.

  10. Problems • Each country has its own IT infrastructure and unique applications. • Hard to integrate products, services, and information to serve the highly sophisticated, mobile, and increasing demanding global customers. • The economic reason for standardizing and consolidating bank products and processing across the diverse countries.

  11. Platform: MVS AS/400 UNIX Applications: COSMOS CORE System Environment The systems were modified because of different regulations and requirements in different countries.

  12. Strategies • Re-architect the IT infrastructure by standardizing and centralizing all back office banking functions. • Develop center of excellence by encouraging individual countries to take the lead in developing product and process where they have significant leadership and competitive advantages in the marketplace. • The systems, products, and processes must meet the requirements for all countries in the region and have full support from the original developers.

  13. Implementation of RCC • Regional Card Center (RCC) in Singapore as a prototype for consolidation. • Jump-start credit card business in the southeastern Asia. • Combine centralization and decentralization idea to meet specific local business needs and low cost of processing at the same time.

  14. Effects of the implementation • By 1990, having reduced the processing cost per credit card by 45%. • 1994, cost was down to 32% of the 1989 cost. • 1996, processing in 15 countries, and 5 million from 230,000. • 3 months to launch a new business instead of previous 14 months. • Devote resources to other services • Recruit and retain talent from the best in the region.

  15. Re-architect the infrastructure • Centralization of computing • Centralization of software development • Choose Systematics and change it. • Convert other programs to Systematics. • Increase programming productivity and reduce staff. • Setup the backup site.

  16. Building Common Front-end Systems • Build the case for action • Design • Implementation

  17. Management Success Factors • George DiNardo’s leadership. • Vision • Implementation Strategies • Top Management’s supports. • Strong team

  18. Remaining Issues • Conversion may surface unexpected technical problems. • What if DiNardo retires. • High level of operation complexity presents challenges in maintaining availability, reliability, and quick response time.

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