Korea's Shinhan Bank to expand cash management overseas with GXS
10 July 2007 | 2824 views | 0
Source: GXS Managed Services
GXS, a leading provider of business-to-business (B2B) e-commerce solutions, today announced that Korea's Shinhan Bank, a member of Shinhan Financial Group (NYSE:SHG), has selected GXS Managed Services to support the rollout of its Global Cash Management Services. Already a leader in the Korean market, Shinhan Bank is expanding overseas and opening branches across the globe. As the world's largest provider of B2B e-commerce and integration services worldwide, GXS is enabling Shinhan Bank to establish global B2B capabilities quickly and cost-effectively through its deployment of GXS' leading B2B outsourcing solution, GXS Managed Services. GXS Managed Services is facilitating Shinhan Bank's integration with its multinational clients and banking partners around the world using local e-commerce standards, while also satisfying country-specific banking regulations.
GXS Managed Services offer financial institutions best-in-class B2B integration capabilities including corporate enterprise resource planning (ERP) integration, file and message transfer, new client implementations and map design and development. GXS Managed Services will enable Shinhan Bank to offer its customers new services such as global cash management and supply chain finance. Additionally, Shinhan Bank will be able to integrate with their corporate clients' purchasing and logistics applications to receive copies of supply chain documents including purchase orders, bills of lading and commercial invoices. The supply chain data will be used by Shinhan Bank to power a new suite of supply chain finance services including pre-export and post-export financing for small-to-medium-sized business (SMB) suppliers.
"Korean conglomerates continue to expand into international markets including the United States, Europe and China to capitalize on the tremendous business opportunities these regions represent. To be successful in their expansion efforts, Korean multinationals must have command and control of their treasury and cash management processes on a global scale," said Kang Shin-Seong, deputy president of Shinhan Bank's Treasury and Global Banking Group. "GXS Managed Services provide a key component of our Global Cash Management Services that will enable us to meet local B2B integration requirements for businesses around the globe. This is a major competitive advantage that will increase flexibility and accelerate time to market."
A bank's ability to provide comprehensive and simple integration options to its corporate clients can be a distinct differentiator in the highly- competitive wholesale banking industry. According to the Tower Group(1), "Banks of all sizes find it difficult and expensive to support today's rapidly evolving technology and proliferating standards." The report went on to say, "Providing connectivity to clients is not in itself a differentself a differentiator, but making integration easier and less costly to implement and maintain can spell success in managing the complexity of wholesale banking relationships."
Outsourcing B2B to GXS enables financial institutions to extend the flexibility of their business models. Banks can seamlessly integrate with corporate clients' ERP systems whether they are running SAP, Oracle or Microsoft applications. Not only does the flexibility enhance the competitiveness of a bank's cash management portfolio in sales opportunities, but client delivery and service quality are improved as well. GXS' best-in- class map development and new client on-boarding services accelerate implementation time and quality. Additionally, enhanced B2B integration capabilities can accelerate new product development. By eliminating technology barriers associated with corporate client integration that can often delay new service offerings, GXS can enable financial institutions to beat competition to market.
"Through the introduction of its Global Cash Management Services, Shinhan Bank is truly demonstrating its ability to innovate and compete in the global market. Many banking services have become commodities with little differentiation between the offerings of one bank and another's," said Raymond Teh, GXS vice president of Asia-Pacific operations. "By leveraging best-in- class B2B integration solutions, Shinhan Bank is distinguishing itself from its competition and providing customers with compelling reasons -- ERP integration and global B2B capabilities -- to choose and stay with Shinhan Bank for global cash management."
As part of its Managed Services offering, GXS provides the people, processes and technology to perform all day-to-day management of an organization's global B2B operations. Organizations that deploy GXS Managed Services are empowered to free up internal resources to focus on core business objectives, reduce costs and fill gaps in a customer's internal expertise. Companies currently using GXS Managed Services around the world include Avago Technologies, Bank of Montreal, BB&T, Eight O'Clock Coffee, Exel, InterTAN, Miller Brewing Company, PepsiAmericas, National Instruments, Royal Bank of Canada and Thomson Consumer Electronics. GXS Managed Services leverages GXS Trading Grid(R) to provide customers with world-class B2B program management. GXS Trading Grid is a global B2B e-commerce and integration platform that supports the creation and adoption of on-demand supply chain management solutions for companies of any size.