Chinese Banking Technology Vendor Landscape: The Domestic Players

by Hua Zhang, September 22, 2011
Vendor Reviews
Asia-Pacific

Abstract

The asset size of Chinese banks reached US$14 trillion in 2010, and bank IT spending reached US$ 11 billion in 2010. The domestic vendors account for most of the market shares in many fields, except for credit cards and wealth management which are dominated by foreign technology.

In a new report, Chinese Banking Technology Vendor Landscape, Celent examines the product features, customer segmentation and strategies of each vendor.

The major domestic Chinese vendors of IT systems in the banking industry are Digital China, Longtop, Yucheng Technologies, Sunline and Hundsun Technologies. Many foreign system providers, such as TCS, Temenos, and SAP, are also very active in the Chinese market. At present, the market is fairly fragmented, with the top 10 vendors having only 50% of the market. However, some of the publicly listed domestic IT vendors are expanding rapidly through acquisitions. The leading systems integrators in China are IBM, Accenture, HP, Digital China, Global Infotech, and Hi Sun Technology.

Although some foreign core system vendors have attained a certain level of success in China, the road is rough. At the same time, the market for credit card systems is already saturated with foreign vendors. Chinese vendors are relatively weak in cash management, wealth management, and risk management, and hence the potential is great for foreign vendors in these areas.

“In terms of opportunity, joint-stock banks and city banks are the priority customer segments in China’s bank technology market,” says Hua Zhang, analyst with Celent’s Asian Financial Services group and author of the report. “Celent recommends that foreign vendors find suitable distribution and implementation partners. Potential partners include Digital China, IBM, HP, Accenture, Global InfoTech, and Hi Sun Technology.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
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Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

Vendors and Customers

9

Channel Systems

12

 

Hundsun Call Center

12

 

Internet Banking

13

Multi-Channel Integration System

14

 

Digital China’s Channel Integration System

14

 

Hundsun Technologies’
Multi-Channel Integration System

15

 

Global InfoTech

15

ESB

19

 

Digital China

20

 

Realesoft

21

Core Banking System

23

 

Global InfoTech

26

 

Digital China

27

 

Sunline

28

 

Longtop Financial Technologies

30

Cash Management System

32

 

Hundsun Technologies

32

Wealth Management System

34

 

Longtop Financial Technologies

34

 

Hundsun Technologies

35

Risk Management System

38

 

Credit Risk Management System of CVIC SE

38

 

Credit Risk Management System of CVIC LK

38

 

Yucheng Technologies’ ODS System

39

 

Longtop Financial Technologies

39

Credit Card

41

CRM and Accounting Systems

43

 

Yinke Jindian CRM

43

 

Sunline CRM

45

 

Longtop CRM

46

 

Digital China CRM

49

 

Accounting System

50

Conclusions

51

Leveraging Celent’s Expertise

53

 

Support for Financial Institutions

53

 

Support for Vendors

53

Related Celent Research

54

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