Bank of Communications relies on IBM® for security-enhanced file transfer

Published on 26-Aug-2011

Validated on 01 Mar 2013

"We are very concerned about data centralisation. Better informed management is a key issue to modern banking operations. With centralised data management, the headquarters will be able to monitor branch level performance timely and accurately. Thus a secure file transfer solution is critical." - Hou Weidong, Chief Information Officer, Bank of Communications

Customer:
Bank of Communications

Industry:
Banking

Deployment country:
China

Solution:
B2B, Smarter Commerce

Overview

As one of China’s largest banks, BoCom needed to quickly resolve the challenge of sending files between its headquarters and branches. Although it often develops IT systems in-house, it turned to IBM for its data transfer needs.

Business need:
Resolve the challenge of data transfer

Solution:
IBM® Sterling Connect:Direct®

Benefits:
•Updates infrastructure• Adopts a world-class solution•Invests in a best-practice system

Case Study

Customer background

With the opening of China’s market for the WTO agreement and the 2008 Olympic Games, Chinese banks are rushing to improve their infrastructures. Naturally, this includes ambitious data centralization projects to network their far-flung branches, which sometimes number in the tens of thousands. To underscore the potential value of these projects, China Banking Regulatory Commission Chief Liu Ming Kang has been quoted as saying, “For the first time in Chinese banking history, banks have been armed with the tools to measure the performance of branches.”

This pressure is higher for Chinese banks listed internationally, such as Shanghai-based Bank of Communications (BoCom), the first Chinese bank to successfully complete an initial public offering in Hong Kong in June 2005. In the same month, BoCom finished centralizing data for its wholesale banking operations, and is now doing the same for retail banking data in a year-long project scheduled to be completed in August 2006. To realize its goals, however, it needed a reliable file transfer solution in order to connect the dots.

Business challenge

As one of China’s largest banks, BoCom needed to quickly resolve the challenge of sending files between its headquarters and branches. Although it often develops IT systems in-house, it turned to IBM for its data transfer needs.

“We are very concerned about data centralization,” says Hou Weidong, BoCom’s chief information officer, in Mandarin Chinese. “Better- informed management is a key issue to modern banking operations. With centralized data management, the headquarters will be able to monitor branch level performance timely and accurately.” Thus, a secure file transfer solution is critical.

Solution

“We attach a great importance to security management with regards to data/file transfer,” says Hou. “Besides conventional security-maintaining measures such as fire walls, we have also installed Sterling Connect:Direct.” Sterling Connect:Direct is a leader in security- enhanced file transfer solution for files of all sizes, even multi-gigabyte files, and runs on over 45,000 servers around the world.

BoCom is leveraging the proven expertise of IBM to solve its challenges to significantly improve its sizeable investment in a new data system and in centralizing disparate strands of data for maximum benefit. According to Zhou Hengchang, head of the general engineering office at BoCom’s Software Development Centre and the person in charge of operational issues, “Before we installed the IBM solution, we used the (freeware) FTP to transfer files between branch and head office. The operators always needed to know the IP address and the password each time, which created potential for breaches.”

“We installed Sterling Connect:Direct between the branch and headquarters’ computer systems. It’s a security-enhanced non-FTP solution with no IP address and password requirement. These criteria were set up beforehand, so the data transfer becomes a dialogue between the two Sterling Connect:Direct systems – in the branch and the head office. Less labour, increased security – only those with access to Sterling Connect:Direct-installed computers with the same set-up have access to the system.”

Key benefits

By using a world-class, best practice solution trusted by top international banks, BoCom is able to bring its infrastructure improvement up several notches through the proven security-rich, reliable and speedy delivery capabilities of Sterling Connect:Direct. This is especially important for a bank that is making its mark in a rapidly changing, high stakes arena like China, but also true for banks all around the region that do not have world-class file transfer solutions.

With the stability of China’s banking system relying so heavily on data centralization of its banks, the importance of having a fast, secure and reliable file transfer system is paramount. With BoCom realizing the benefits in adopting Sterling Connect:Direct, it is not just successful international IPOs that are bringing Chinese banks into a global fraternity of banks, but also investments in a best practice solution for file transfer that helps ensure comprehensive security capabilities, reliability and efficiency.

Products and services used

IBM products and services that were used in this case study.

Software:
Sterling Connect:Direct

Legal Information

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