VietinBank is one of the four largest commercial banks in Vietnam. It accounts for more than 20 percent of total market share within the trade finance market segment–-financial services that support international trade.
Prior to its process improvement project, VietinBank processed its yearly total of one million pages of L/C applications manually. Customer applications and support material were scanned by an old scan-based imaging system and then reviewed and approved by bank officers at VietinBank’s centralized the operations center.
Exception handling was rampant and only resolved through tedious communications on thevia phone, SMS, or by email. Once confirmed, clerks at the operations center would print out and enter the data from the every L/C application form and support material into the bank’s trade finance system, Silver Lake. The entry process was very time-consuming and the cost of IT support and system maintenance for 160 branches was exorbitant. In addition, customer service stakeholders in the process had nohad zero visibility into the process, and thus could not monitoring the status, tracking missing documents n, or provideing adequate responses to impatient customers.
The high volume of documents, number of form types, and number of branches would be a challenge for most process management solutions. In addition, the support documents— including such items as a list of goods—represented an especially big challenge because they were often submitted in free format and with an inserted table. The chosen solution would need to system needed to provide a platform to automatically capture information from the forms and support documents, readily configure the processes, provide real-time visibility throughout, and ultimately generate and transfer a trade finance message to the importer’s bank.
The improvement assessment had also identified a need for greater control and scalability. The chosen solution would need to support two approver processes: one at the initial application receipt at the remote office, and another by the bank officer at the operations center. It also needed to export indexes and messages to the trade finance module of VietinBank’s legacy system, Silver Lake.
Once adopted for its L/C process, VietinBank intended to expand its use of the solution to other processes using different document types.
It also needed to export indexes and messages to the trade finance module of VietinBank’s legacy system, Silver Lake. In addition, the assessment identified VietinBank’s need for greater control and scalability. The system would need to support two approver processes: one at the initial application receipt at the remote office, and another by the bank officer at the operations center. Once adopted for its L/C process, the bank also had the intent of expanding the solution into other processes using different document types.
Banking consultant CMC Soft elected to implement and deploy ReadSoft Xbound ’s banking solution based on the Xbound platform as the core platform for the project. Optimized by web-based add-ons, Xbound’s many activities and modules supported a fully streamlined process for VietinBank’s L/C service.
CMC Soft conducted training for more than 600 system users at three locations in Vietnam, according to Quang Anh Le, CMC Soft’s Director of Banking Solution Center. The deployment was fast and easy, largely due the web-based add-ons. The system supported the scanning and approving immediately, and VietinBank began to realize immediate processing benefits.
Today, when a customer brings the an L/C application to one of the bank’s 160 branches, a bank representative first approves the documents, and another scans them. From there, web-based add-on confirms the scanned document is indeed the approved application. The electronic document is continually monitored according to the process flow by set up in Xbound as it reaches the central operation center, where the image is automatically cleaned up.
Quang Anh Le Director, Banking Solution Center CMC Soft
One of Xbound’s strengths is its ability to integrate with plug-ins. It provides a flexible and scalable foundation that makes it easy to architect a truly effective solution for the customer
At the central site, a bank officer approves the electronic document If it’s rejected, the document is flagged for the branch to re scan eliminating tedious phone calls and email correspondence. If approved, the data in the application form and unstructured support documents are recognized. The operator validates the information, correcting the data if needed so there is no time-intensive manual entry. From there, the information is extracted from the L/C and a transfer message is generated and released to the buyer’s bank.
After only a few months, Xbound was integrated with the company’s legacy banking system, Silver Lake, so that export information and messages could be sent to it.
Designed to handle high document volumes and a multitude of document types, ReadSoft’s highly scalable automation solution for banks helps VietinBank reduce its processing time by an astounding 83%, achieving its service level goal of processing L/Cs in only one day from scan and release. The bank also enjoys much greater visibility for all stakeholders. To accelerate the processing of any particular document, for example, officers at the branch have access to the status of their submitted documents and can easily update their customers and coordinate with colleagues at the processing center. Equipped with a flexible solution platform and “easy-to-deploy” web-based add-ons, VietinBank’s own IT resources expanded the automated L/C process solution into VietinBank Germany and VietinBank Laos. Today, the bank uses the system to also process its L/C input, L/C output and Bank of Guarantee (B/G) documents, and is exploring other additional overseas markets.