Sunday,14 July 2024

O-Bank aims to be Taiwan’s first digital-native bank by leveraging flexible core banking system

5 min read

Interviewed By Foo Boon Ping

Lichen Hung, O-Bank’s CIO, shared insights into the journey and motivations behind transforming a traditional banking institution into a leading digital-first bank.

Formerly known as the Industrial Bank of Taiwan, O-Bank launched as a commercial digital bank in 2017 to distinguish itself in a market dominated by large, established banks. Lichen Hung, O-Bank’s CIO, described the bank’s transformation as a strategic move to “focus on digital banking”, aligning with the bank’s vision to be Taiwan’s first digital-native bank.

The challenge for O-Bank was not just about adopting new technology but also about changing the banking paradigm to meet rapidly changing customer expectations. “The biggest challenge is we need to quickly deliver the products and service to customers,” Hung explained, highlighting the importance of speed and agility in the digital banking sector.

To achieve this agility, O-Bank partnered with banking technology provider Temenos for its core retail banking solution. “Temenos is a leader. We found that it’s light and easy to implement, easy to adopt. We implemented the system in only one year from scratch,” said Hung.

According to the bank, leveraging modern core banking technologies by Temenos has enabled O-Bank to enhance its operational efficiencies and customer service. A significant benefit mentioned was the ability to rapidly develop and deploy new banking products, reducing time-to-market compared to traditional methods. Hung noted: “Before, it could take two to three months to launch a new product...now, maybe two weeks.”

O-Bank’s strategic focus is customer-oriented, targeting young and affluent segments with tailored products that resonate with their needs. According to the bank, the digital-first approach allows O-Bank to offer a superior customer experience, with innovative products and efficient services accessible mainly through digital channels.

O-Bank, with $12 billion in assets and net profit of over $100 million in 2023, is the first among the more recently licensed digital banks—Line Bank, Rakuten Taiwan and Next Bank—to turn a profit.

Looking forward, Hung discussed the bank’s commitment to continuous improvement and adaptation. Plans include upgrading and aligning its core corporate banking system with a newer version of Temenos’ retail banking system, enhancing its digital platform to keep pace with technological advancements and evolving customer preferences.

 

 


Keywords: Core Banking System, Customer-centric Services, Business Strategies, Banking Transformation, Technology Adoption, Banking Products, Time-to-market, Net Profit, Continuous Improvement
Institutions: O-Bank, Temenos, Line Bank, Rakuten Taiwan, Next Bank
Country: Taiwan
Region: East Asia
People : Lichen Hung
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