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CIMB Bank implements an Enterprise-Wide Integrated CCM-Spectrum Solution

Submitted by:
David Chong
Company:
CIMB Bank
Submitted on:
11 Mar, 2010
Category:
Organizational Impact Award

About CIMB Bank

CIMB Bank is the commercial banking arm of CIMB Group, Malaysia’s second largest financial services provider and one of Southeast Asia’s leading universal banking groups, offering a full range of banking products and services to over 5.3 million customers in Malaysia.

Headquartered in Kuala Lumpur, CIMB Group’s main markets are Malaysia, Indonesia, Thailand and Singapore, countries in which the bank has full universal banking capabilities. CIMB has presence in 11 countries covering South East Asia and major global financial centres, as well as countries with which their South East Asian customers have significant business and investment dealings.

The Challenge: Improving Customer Communication and Enabling Personalised and Targeted Marketing

In September 2006, CIMB Bank implemented its first consolidated statement to its upper mass affluent and mass affluent customer segment. Due to the bank’s various disparate source systems and without any proper tools to integrate and consolidate the accounts from various systems, the existing consolidated statement engine could only cover products from the main frame system.

The existing consolidated statement engine was also lacking in system robustness and involves many manual processes. It is also unable to perform personalised and targeted 1 to 1 marketing communication.

On top of the consolidated statement, the bank also prints over 2 million single statements per month from various disparate systems. As a result, the bank’s customers receive multiple statements in a month which has caused confusion and complaints as well as wastages in the form of leaflet insertions.

 Towards end 2007, the bank decided to improve the consolidated statement and its overall statementing and customer communication solution for Retail Banking. The goal was to provide the bank with a robust and scalable technology that will not only able to cater for the current operations requirement but also to be able to support the business growth at domestic and regional level.

Hence to enable consolidation of accounts from various disparate source systems and across multiple business divisions within CIMB Bank, an integrated Enterprise level solution is required.

The Solution: Pitney Bowes Software

In February 2008, CIMB Bank issued an RFP to solicit proposals from potential vendors with the following key criteria of business requirement:

a. The solution must be able to integrate data from various source systems and consolidates accounts into a single consolidated statement

b. The solution must be able to verify and match data from various systems to create a consolidated database or hub

c. The solution must be able to support every aspect of our customer communication ie. from personalized document content creation, robust formatting capabilities, multi-channel delivery to archiving and housekeeping to retention and retrieval

d. Business rules oriented template design capabilities

e. Personalized or 1-1 target marketing enablement

f. Front-end account maintenance for tagging of customer accounts

g. Robust output management

h. Generate control and maintenance reports

In October 2008, the project was awarded to Logica Malaysia who proposed a solution by PB Software.

The Pitney Bowes Software system met all the key requirements for:

  1. Customer Data Integration & Consolidation
  2. Front-end Account Maintenance
  3. Business rules driven templates design
  4. 1 to 1 Marketing and personalization
  5. Output Management
  6. Reports

The Pitney Bowes Software solution comprised of the integration of the following products:

  1. Data Flow (ETL)
  2. Customer Data Quality Platform (CDQP) (Data Matching/Standardization)
  3. Automation (Process Automation)
  4. DOC1 Designer (Statement Template Design)
  5. DOC1 Generator (Statement Generator)
  6. e2 Vault (Document Archival)

The project implementation commenced in November 2008, driven by Logica Malaysia’s professional services team and supplemented by the product and regional implementation experience of Pitney Bowes Software Asia Pacific Professional Services resources. The project shall be implemented in 3 phases with phase 1 on Wealth Management Consolidated Statement which went live in January 2010.

Results

CIMB Bank now has an end-to-end solution for its customer communication management and is able to integrate and consolidate data from various disparate source systems, consolidate statements for upper mass affluent and mass affluent segments as well as to generate normal single statements and correspondences and perform 1 to 1 dynamic targeted marketing.

In addition, the bank has managed to shorten the consolidated statement processing and generation time from 5 days to 2 days and present a consistent statement to customers.

E-statement will also be available soon through the bank’s internet banking portal.

Benefits

1.Enhanced customers’ experience

  • Customers can now have a consolidated view of all their accounts in the consolidated statement and not limited by different product systems within the bank
  • Value-added information such as summary of customer’s total portfolio and breakdown by product types and respective accounts with basic information eg. balance, interest rate, deposit tenure, maturity date for fixed deposits, foreign currency and its RM equivalent value, etc … as well as reminders and special personalized messages, beyond serving its primary function of merely just a financial statement but also allows portfolio management that enables customers to perform analysis of their financial portfolio
  • Additional channel for customers to view and print e-statements through the bank’s internet banking

2. Benefits to Bank

  • Cost Saving through reduction of paper, printing and postage costs via consolidated statements and self service statement request (e-statement)
  • Increase marketing effectiveness and customer take up rate via printing of targeted marketing messages to specific customer group/segment and personalized 1 to 1 marketing messages in the statements

3. Improve Operational Efficiency / Processing Time

  • Reduce operational work on validating and checking by having a proper customer data integration / consolidation engine
  • Remove manual processes in tagging and uploading data for processing of consolidated statement
  • Improve statement archival processing time by half