INTEGRO· News and Events

Integro’s Mobile Banking is a feature-rich embedded and encrypted midlet J2ME application that a mobile hone user can download to his mobile phone to perform real-time transaction. It allows for end-to-end-encryption and also permits immediate response from the host system when conducting transactions.For more information, please check out the Mobile Banking Product Page.

Maybank to install centralized collateral management systemNEW STRAITS TIMES Tuesday, November 7, 2006MALAYAN Banking Bhd (Maybank) will implement a centralized collateral management system (CMS), a key component of risk management initiatives in meeting Basel II requirements.The group-wide CMS is expected to be fully implemented by third quarter next year, after which Maybank will have a central database to actively monitor its collateral positions.Maybank signed an agreement with CMS solutions provider, Integro Technologies Sdn Bhd. in Kuala Lumpur yesterday.“It will enhance our capabilities to manage our collateral positions more effectively by integrating some of our existing silo systems.” Maybank deputy president and chief financial officer Datuk Mohammed Hussein said in a statement.The CMS is another major foundation piece of the Integrated Risk Management (IRM) Framework that was conceptualized by Maybank in early 2003.The IRM Framework, which comprises a number of large risk-related projects, will meet international best practices and is benchmarked against the Basel II Internal Ratings-based Approach. Among its characteristics are refined risk quantification, sophisticated collateral management and optimum capital allocation.Integro Technologies executive chairman Lim Bak Wee, meanwhile, said the company’s solutions have also been implemented by another major international bank for its world-wide deployment.He said the system is suitable to help Maybank meet its targeted compliance standard, and at the same time, enhance further the robust risk management practice within the bank.

One of Integro’s customers, Hong Leong Finance Singapore, won the 5th Intelligent Enterprise Asia Awards. Since 2000, Intelligent Enterprise has been recognizing exemplary innovative companies who succeeded in using technology strategically to add value to their business. Each year an independent panel of judges represented by Asia’s leading management and IT consultants will judge the entries. In September 2003, Hong Leong Finance (HLF) embarked on a major system revamp programme to the tune of S$1.5 million (US$933,000)—a move that aimed to modernize its IT environment so that it can compete effectively in the financial services industry.As its consumer and retail portfolio consists of mainly consumer mortgage loans and auto loans, HLF faces stiff competition from large domestic banks.Prior to the implementation of the new system, the organization faced two major challenges. On the consumer front, its old paper-based credit process was too slow and inflexible, making it impossible to respond to customers quickly. Also, the lack of an automated platform discouraged business managers from embarking on product innovation and joint promotion campaigns. Risk management was unrefined as well; there was no timely or quality management information to support strategic decision-making.For its SME customers, HLF required an automated platform to enable the close monitoring and ongoing risk assessment of individual borrowers—something the old environment could not provide. As a result, this limitation impeded market share expansion, both in terms of new businesses and with existing borrowers.To meet HLF’s new technology requirements, the company partnered with Integro Technologies, which provided its SmartLender suite of products and professional services.The project comprised several parts covering the core processing systems, front-end systems, as well as network and hardware infrastructure. Integro’s SmartLender Corporate and SmartLender Retail were deployed as the end-to-end integrated approach to marketing, application processing, risk management, and strategic portfolio management platform to transform HLF’s lending business (consumer and SME sectors) to one that is both highly efficient and effective.SmartLender Corporate and SmartLender Retail are developed on a common platform, the Open Finance Architecture (OFA) by Integro. OFA is a J2EE and XML component-based n-tier financial Web application platform.The customer-centric SmartLender Retail supports consumer mortgage loans (specifically HDB) and auto loans. What makes the system special is not just the state-of-the-art technology platform (a multi-tier Enterprise Java Beans architecture), but the business design concepts. It is an end-to-end integrated workflow encompassing straight-through processing. Because it is Web-based, it is expandable to third party agents like motor dealers and housing agents.Through incentives and commissions, HLF has in effect created a powerful and flexible virtual branch network to ring in auto and mortgage loans. It comes with a feature called Campaign Manager, which is embedded within the credit processing system, enabling HLF to embark on joint marketing campaigns with motor dealers as frequently as needed without having to worry about system changes.Moreover it offers a 360 degrees risk management subsystem, which ensures that new loans brought in are quality loans. As all collaboration and credit underwriting is done through an automated networked environment, the turn-around time to the end consumer can be achieved in a very short time—practically within the hour. This enables the approval of an auto loan application quickly.The relationship-driven SmartLender Corporate, on the other hand, offers automated financial analysis, eliminating the need for Excel spreadsheets under the previous paper-based system. This is also the first building block of the SmartLender Corporate system that includes credit risk rating, collateral management and portfolio management. This system captures all pertinent information concerning the borrowers and related borrowers. Risk management is thus performed on “One Obligor” and on an enterprise basis. This way, HLF can proactively control its exposure to industry segments and customer groups. The workflow system monitors every process step and notifies the relevant officers should there be any undue delay in any of the process steps.

With the implementation of SmartLender Retail and SmartLender Corporate, HLF’s management now has timely information on productivity, turnaround time, business volume, marketing calls and closing rates, etc.—all they need to propel the company forward and stay ahead of the pack.

Integro Technologies Pte Ltd bagged the Merit Award (Financial Applications Category) at this year’s Asia-Pacific ICT Awards (APICTA 2004) in Hong Kong, held from 8 to 11 December 2004. Singapore Infocomm Technology Federation (SiTF) is the national coordinator for this prestigious regional award.
Integro’s depth of banking expertise as illustrated by their motto of “Systems designed by Bankers for Bankers” was recognized by the APICTA award, which was awarded to its SmartLender Collateral & Limits Management System (CLIMS).CLIMS is one of the most sophisticated Credit Portfolio Risk Management systems in the world today. The system automatically values collaterals and manages exposures on a global basis from a centralized database. Its multi-country, multi-currency and multi-users architecture not only suits the requirements of international and regional banks but also matches the needs of the many major local banks which are required to support their prime customers worldwide in this economy, which is experiencing increasing globalization.CLIMS sets the foundation for meeting the highest standards of Basel II compliance as it addresses the key risk components of the Advanced Internal Ratings-based Approach (AIRB). These risk components are Exposure at Default (EAD), Loss Given Default (LGD) and Maturity (M).The implementation of the Basel II risk management practices will result in strong risk management capability that translates into improved competitiveness and better financial performance. It will also lead to more efficient capital allocation and reduction of regulatory capital for banks.CLIMS is equipped with a sophisticated workflow that supports multi-country credit operation of a comprehensive range of 56 types of collaterals ranging from aircrafts to coffee beans. The more popular collaterals are properties, marketable securities and currency deposits.

The recent Asian Financial Crisis has taught banks many valuable lessons. There is now heightened urgency to manage collateral concentration risk, conduct stress testing and portfolio diversification. CLIMS automatically generates collateral concentration reports on a daily basis and supports scenario stress testing, e.g. impact on credit portfolio due to a decline in property and equity prices.

CLIMS is the foundation to Basel II compliance.

After the successful launch of its Consumer Internet Banking service last year, United Overseas Bank (Malaysia) Berhad (UOB) launched its Business Internet Banking service today. Around 150 invited corporate customers attended this launch which was held at Hotel Nikko.Taryn Foo, UOB’s Head of Internet Banking, briefed the guests on the features and the security aspects of the system. Many guests were impressed by the services and the security measures, especially on the usage of the token cards; which provides for high security and flexibility. Part of the briefing also showed the guests how the system is set-up for the users; from the initial registration to first-time activation by the users.This online banking system, operational 24 hours, 7 days a week, boast a wide range of features for its commercial customers to perform cash management and loan transactions, trade services and bill payment.UOB’s Internet Banking system delivered by Integro Technologies Pte. Ltd. Integro’s advanced customer-centric J2EE-based OFA (Open Finance Architecture) platform provides robustness and scalability for UOB’s future growth. The retail Internet banking system is part of Integro’s Open Finance Architecture (OFA) suite of products consisting of consumer, commercial, loans origination and investment system. With this architecture it allows UOB for expansion to introduce more value-added products to its customers.

About United Overseas Bank Malaysia Berhad

Founded in 1935, the UOB Group is the largest bank in Singapore with a network of 273 offices, of which 87 are in Singapore and 186 around the world in countries such as Indonesia, Thailand, Hong Kong S.A.R., China, Japan, Australia, United Kingdom, France, USA and Canada, among others

The UOB Group has been operating in Malaysia since 1951 under the banners of Chung Khiaw Bank, Lee Wah Bank and United Overseas Bank. In 1994, UOB took over the operations of Lee Wah Bank and in June 1997, it acquired Chung Khiaw Bank. In February 2002, UOB merged with Overseas Union Bank (OUB), and now has 37 branches nationwide.