IBM Extends Its Banking Tech Expertise Into Emerging Markets

By Darryl K. Taft  |  Posted 2013-07-23 Print this article Print

IBM is extending its expertise in laying the foundation for banking beyond the established world and into emerging countries. A modern, reliable, secure banking system is a basic requirement for economic growth. For emerging economies, developing such a banking system is both a challenge and opportunity; large portions of their populations may not have bank accounts or use banks regularly, creating an impediment to growth and development. McKinsey & Co. reports that more than a billion people in emerging nations have cell phones but not bank accounts. These "unbanked" citizens are left to store and transfer money using informal networks, which often charge high transaction fees, and are prone to theft or loss. These untapped potential customers provide a huge market that can drive growth for local banks in these emerging economies, as well as for the communities and nations they serve. But it requires that these organizations invest in new technologies to enable banking services that are secure, reliable and available, and incorporate new technologies such as mobile and social applications. These financial institutions are turning to IBM to provide the technology to power and strengthen their banking systems. This slide show looks at IBM’s foray into supporting banking in emerging economies.

  • IBM Extends Its Banking Tech Expertise Into Emerging Markets

    By Darryl K. Taft
    0-IBM Extends Its Banking Tech Expertise Into Emerging Markets
  • IBM’s Banking Push Into Growth Markets

    IBM has been aggressively selling its banking infrastructure in emerging economies, with key wins in Africa, South America and Asia, among other areas.
    1-IBM’s Banking Push Into Growth Markets
  • Saigon Hanoi Commercial Joint Stock Bank

    Vietnam has a labor force of more than 50 million people, yet roughly 80 percent of the population is currently unbanked. Saigon Hanoi Commercial Joint Stock Bank is using IBM Power Systems, Storage, and Tivoli software to streamline business processes across its IT infrastructure and enable broader client reach through new online and mobile banking services.
    2-Saigon Hanoi Commercial Joint Stock Bank
  • Nigeria’s Keystone Bank

    IBM technology has cut processing time for customer transactions in half at Keystone Bank in Nigeria, while increasing overall process performance by 90 percent and reducing operating costs by 60 percent. The technology consists of IBM Power Systems and Storage, AIX operating systems PowerVM virtualization technology and PowerHA disaster resiliency software.
    3-Nigeria’s Keystone Bank
  • Indonesia’s Bank Ekonomi Raharja

    With an estimated 240 million people, Indonesia is the world's fourth-largest nation and one of the fastest-growing economies in Asia, prompting HSBC-owned Bank Ekonomi Raharja to upgrade the IT infrastructure for its core banking systems to streamline business processes and expand services to meet the demands of a rapidly growing customer base. Bank Ekonomi Raharja is using IBM technology consisting of Power servers and DS Series storage.
    4-Indonesia’s Bank Ekonomi Raharja
  • Ghana’s Fidelity Bank

    Known for its innovative mortgage and rural banking services, Ghana's Fidelity Bank built a state-of-the-art data center to manage the tremendous growth it was experiencing, focusing on energy efficiency, business continuity, resiliency, security and disaster recovery. The data center, located at the bank's headquarters in the Ghanaian capital of Accra, consists of IBM Power and System x servers, PowerHA disaster resiliency and PowerVM, and DS Series and Storwize storage.
    5-Ghana’s Fidelity Bank
  • International Bank of Azerbaijan

    Serving clients in more than 40 cities across the nation, the International Bank of Azerbaijan faces the challenge of managing rapidly growing data volumes. The bank chose an IBM Storwize storage offering over competing products to improve storage utilization, centralize and simplify management, and increase capacity through virtualization technologies.
    6-International Bank of Azerbaijan
  • Credit Unions Systems for Brazil

    Credit Unions System for Brazil (Sicoob) is the largest credit union system in Brazil, offering banking and credit services to more than 2.5 million people. A Linux-based Smarter Computing technology from IBM consisting of System z servers, DB2 database, InfoSphere DataStage and Cognos analytics software helped the institution reduce energy costs by $1.5 million annually, while growing in-branch transactions by 60 percent, Internet banking by 200 percent and mobile solutions by 600 percent.
    7-Credit Unions Systems for Brazil
  • Democratic Republic of Congo’s RAWBANK

    The largest private bank in the Democratic Republic of Congo, RAWBANK needed to reach unbanked potential clients with innovative services such as text notification via mobile phone for all account debits and credits, and prepaid debit cards to allow small businesses and individuals to securely pay bills and procure goods without carrying around cash. The technologies from IBM to enable these services include Power and Blade Center servers, with Informix database and information management software.
    8-Democratic Republic of Congo’s RAWBANK
  • India’s Dombivli Nagari Sahakari Bank

    In India, the banking industry is growing 23 percent annually, yet only 61 percent of the population has savings accounts, 19 percent has debit cards and 1 percent has credit cards. To tap this market opportunity and attract young, Internet-savvy customers, Dombivli Nagari Sahakari Bank was the first cooperative bank in the country to launch mobile banking services, supported by an IBM PureFlex System solution that integrates the bank’s hardware, cloud capabilities, network management and virtualization.
    9-India’s Dombivli Nagari Sahakari Bank
  • Argentina’s Banco Galicia

    Argentina is a highly competitive environment for banks, and as one of the top three private banks in Argentina, Banco Galicia needed to develop and launch new banking and financial products faster to win new customers and increase its competitiveness. The bank chose an IBM System z platform and DS Series storage as the foundation for an SAP for Banking technology to provide speed, reliability and availability, and to integrate legacy applications, preserving existing investments in software and business processes.
    10-Argentina’s Banco Galicia
  • China Everbright Bank

    Leading commercial financial institution China Everbright Bank has selected an IBM Smarter Computing offering to run its core credit card operations with daily and peak volumes exceeding 10 and 12 million transactions. To ensure availability at its 82 branches and more than 600 outlets in more than 60 cities across China, the bank is now building an architecture based on the IBM System z mainframe. To analyze huge quantities of business, market and customer data in near-real time, it chose to implement IBM Power Systems and IBM Cognos software, which help collect and integrate data from multiple sources.
    11-China Everbright Bank
  • Russia’s Alfa Bank

    Headquartered in Moscow, Alfa Bank is Russia's largest private bank, with more than 5 million customers in seven countries. The bank chose IBM Power Systems running SAP human resources management software, allowing fast deployment, flexible workload distribution, security and scalability for applications, with minimal administration requirements.
    12-Russia’s Alfa Bank
Darryl K. Taft covers the development tools and developer-related issues beat from his office in Baltimore. He has more than 10 years of experience in the business and is always looking for the next scoop. Taft is a member of the Association for Computing Machinery (ACM) and was named 'one of the most active middleware reporters in the world' by The Middleware Co. He also has his own card in the 'Who's Who in Enterprise Java' deck.

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