A Case Study: Citi-bank AsiaPacific
Agenda
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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
• Marshalling human and technological
resource more imaginatively and costeffectively than competitors
Strength
• Global presence—network banks in more
than 90 countries.
• Growing overseas consumer banking
Status in 1991
• Asia +400 millions
• US –894 millions
• Europe, Africa, and the Middle East +132
millions
Asia growth
• Consumer deposits 13.6 billion (6 times
growth 1983-1992)
• Loans 10.3 billion (7 times growth 19831992)
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.
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.
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.
System Environment
Platform:
• MVS
• AS/400
• UNIX
Applications:
COSMOS
CORE
The systems were modified because of different
regulations and requirements in different
countries.
Strategies
1. Re-architect the IT infrastructure by
standardizing and centralizing all back office
banking functions.
2. 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.
3. The systems, products, and processes must meet
the requirements for all countries in the region
and have full support from the original
developers.
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.
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.
Re-architect the infrastructure
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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.
Building Common Front-end
Systems
• Build the case for action
• Design
• Implementation
Management Success Factors
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George DiNardo’s leadership.
Vision
Implementation Strategies
Top Management’s supports.
Strong team
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.