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Delivering optimal banking services to a growing customer base with IBM

The Rizal Commercial Banking Corporation in the Philippines transformed its IT infrastructure with IBM to run a new core banking system that would serve a growing customer base, and improve the quality of its banking services.

The Rizal Commercial Banking Corporation (RCBC) is one of the largest private domestic commercial banks in the Philippines. Established in 1960, it started as a small development bank, in the province of Rizal; the first commercial bank to ever establish a head office in that province.

Since then, the bank has expanded into a wide range of market segments, covering consumer, retail, middle income groups and corporate businesses. It is also a strong player in the remittance industry, with an extensive presence supported by its remittance subsidiaries and partners in in North America, Europe and Hong Kong.

Aggressive plans to grow the customer base
RCBC wanted to retain its strong business momentum through further growth; in the next five years, it intended to add 10 million new customers to its existing base. In order to achieve this goal, the bank realized that it had to surmount several obstacles.

One key obstacle was the fact that its customer data and applications ran on fragmented and siloed IT systems. Given the complexity and interoperability issues, employees found it difficult to share information, while decision makers could not obtain timely visibility across the entire institution, resulting in slower decision making and limited oversight.

To transform its banking operations, RCBC made the decision to consolidate its existing core banking applications into an integrated platform, built on Finacle software. The new platform would give the bank better insights into its customers, allow it to design differentiated services, and optimize its banking processes.

Yet, RCBC’s existing IT infrastructure was not powerful enough to support the new core banking application, and also unable to scale up to meet projected IT workloads arising from the bank’s ambitious growth plans.

An optimized and reliable banking IT platform
To ensure the highest levels of performance and reliability of its new core banking system, RCBC obtained help from the IBM Global Technology Services team to design and build a robust IT infrastructure, based on IBM System z and DB2.
IBM System z would provide RCBC with leadership capabilities for availability, scalability, security and management; essential to scale up for growth, and powerful enough to cater to the full capabilities of Finacle. System z also integrates operational data with performance analytics to give RCBC the ability to optimize IT workloads and maintain reliability and quality of service across the entire infrastructure.

DB2 was deployed to provide an industry-leading scalable and reliable database to support the information management needs of the core banking application. It would give the bank the headroom to accommodate a rapidly expanding base of customers, improve service levels while lowering the cost of data. All in all, the new IT infrastructure would be capable of running at peak levels of availability and performance, in order to support the bank’s mission-critical applications. Furthermore, the infrastructure would also be extended to other banking applications such as its wealth management and customer relationship management systems, as well as mobile banking.

Apart from providing the solution, IBM also helped to tailor the solution to support the bank’s specific requirements. IBM professionals collaborated effectively with RCBC’s third party banking application provider, ensuring that all timelines were met.

Confident business growth and improved banking services
The move to the new core banking system, run on IBM platforms, have brought about new levels of service delivery and capability to RCBC. With IBM’s help, RCBC no longer has to deal with multiple fragmented IT systems, nor endure limits on its ability to serve a growing customer base. The new system would also provide RCBC with the ability to provide customers with a personal and targeted banking experience through the deployment of new services.

Since the deployment, RCBC has successfully applied the capabilities of the platform to expand into new demographics, including farmers, small business owners and clients in more rural parts of the Phillpines, where banking facitilities have yet to penetrate extensively. For these customers, RCBC will be able to offer new services like micro-financing.

All in all, the new system has transformed the way RCBC conducts its business, by effectively providing the institution with the reliability and confidence it needed to take its business forward.

The challenge

The Rizal Commercial Banking Corporation (RCBC) needed a scalable and powerful IT infrastructure to support a new core banking application.

The solution

IBM Global Technology Services helped RCBC implement a solution built on IBM System z and DB2.

The benefits

RCBC acquired a high-performance and scalable IT infrastructure that maximized the full capabilities of the new core banking system, and handle growing customer demands without compromising service quality and customer experiences.

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