China
A number of relatively strong domestic banking system suppliers and service providers have typically dominated in China and now vie with international suppliers of which the most successful to date has been TCS Financial Solutions. Certainly, not all projects with non- domestic systems have gone well, playing back into the hands of the domestic players and meaning a number of foreign suppliers have gained initial footholds but have not kicked on from here.
There were 18 wins in 2007, twelve in 2008, nine in
2009,twelve again in 2010, eleven in 2011, nine in 2012, seven in2013 and six in
2014.The downward trend saw a reversal in 2015, with a significant jump to fifteen wins. 2016 recorded eleven wins. The largest deal to date was back in 2006, for TCS’s Bancs at Bank of China. Either side of this, other takers of Bancs in the country included Fuhwa Bank and Guangdong Credit Cooperative Union, both signed in 2007, Hua Xia Bank (2005) and Bank of Hangzhou. Guangdong Credit, the largest provincial credit union in the country, went live with Bancs in late 2009.
There was then a lull for TCS, with no wins in the country in
2008 or 2009. However, it gained more business in 2010, with four wins for Bancs, comprising Bank of Hangzhou, China Construction Bank, Shanghai Rural Commercial Bank and Tai Fung Bank. This probably reflected the good progress at the other Chinese sites. TCS won one of only three non-corporate banking-oriented deals in 2011, with another credit union, Hubei Rural Credit Union. Panzhihua Commercial Bank (PZH) was added by TCS in 2012 (although the final contract wasn’t signed until the start of 2013), and it went live after a ten month project which spanned the breadth of the bank’s retail banking activities. TCS as a whole has a major presence in China, with six delivery centres and 3000 staff. It picked up another deal in the country in 2014, at Qinghai Rural Credit Union. 2015, was a good year for TCS. It enhanced its market share by adding 3 more banks. Two more banks were added to its customer list in 2016.
Temenos has a reasonable presence and added Xiamen International Bank during 2010. The supplier claimed for a long while that its largest retail customer in the world was Bank of Shanghai, which signed back in 2003. Unlike TCS, this doesn’t seem to have propelled the supplier to a lot of additional business. Temenos gained Bank of China International in 2009 and also a contract from Agricultural Bank of China in the same year for its high-end retail banking platform, Temenos Core banking (TCB). The latter was understood to be for a pilot
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project to evaluate TCB as a possible development platform which the bank might use as the basis for building its own system. Temenos added nothing in 2011, 2012 or 2013 but then had an off-the- record win in 2014. Temenos had 3 deals in 2015 , of which 1 was Quark Finance, Quark was incorporated in 2014 , with a focus on personal finance. The supplier scored another win in 2016 with a commercial bank, Shanghai Pudong Development Bank.
Oracle FSS picked up Ping¬ An Bank and the international
operations of a North American bank in China in 2010, to add to a clutch of other clients in the country, one of which is Taizhou City Commercial Bank. The supplier claimed that Ping An Bank was live in early 2012. This was built on in 2011 with two bank wins for Flexcube, one of which was Fudian Bank. With four wins in 2012, including Bank of Shaoxing, the supplier looked as though it was building on this platform. It other single off-the- record wins in 2013; and 201l ; Oracle FSS though won 1 deal in 2015 for the CBS implementation.
One company that has lost momentum in the region, as
mentioned, and in China in particular, is Sungard, with the Symbols core banking system (now Ambit) derived from Singapore-based System Access. The original company had a joint venture in China and gained two deals in 2006 (Bank of East Asia and Jinan City Commercial Bank – now known as Bank of Qilu) and another two in 2007 (Morgan Stanley Nan Tung Bank and Taiyuan City Commercial Bank) but there has been nothing since then.
Also not making any headway is Malaysian supplier,
Silverlake, which had wins in the past but nothing since 2008, but its Malaysian counterpart, Infopro, picked up a win in 2012 at the international operation of Krung Thai Bank.
China has produced treasury/capital market system sales. In 2010, the recipients were Misys with Opics, Financial Software Systems (FSS, now part of Wall Street Systems) with Spectrum, Calypso, and Sungard with Quantum/Ambit Treasury. Opics has traditionally done well in the country and had a batch of wins in 2009 (Bank of Jiangsu, Rural Credit Cooperatives Union of Shunde, and Zhejiang Tailong Commercial Bank), followed by Kunlun Bank. Similarly, Quantum/Ambit Treasury already had users, including Bank of Shanghai and Postal Savings Bank, and added another to the list in 2010. FSS’s win at China International Capital Corporation (CICC) was its first in a country it had been targetting for some time.
In 2011, all the treasury and capital market systems deals
went to Misys, with six for Opics and two for Summit. The Opics deals included the Chinese branch of South Korea’s Hana Bank, China Minsheng Bank and Chinese Mercantile Bank (now
Market Dynamics Report 2017 |
www.ibsintelligence.com
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