Case: American Personal Loan Custody Application

Client: China Construction Bank

Note: Bank of America has the largest stake in China Construction Bank behind the China central government

Background:

In 2006, the largest commercial bank in the United States and China Construction Bank formed a partnership in the personal banking business area. In May of that year, the American bank sold its personal loan business in China to China Construction Bank. Through this agreement, the previous clients of the American bank became clients of China Construction Bank.

Challenge:

China Construction Bank needed to develop a new interest computation system to host existing clients from the U.S. bank. The new system developed would process the daily loan business according to the U.S. banking standard, including the ability to load information from applications, mortgage, early maturity, U.S. Federal interest rate changes, etc.

Response:

• HIME built a team of 3 Software Engineers, 1 Business Analyst, 1 Quality Engineer and 1 Project Lead for the project
  
• The project was implemented using Delphi 6.0, SQL Server 2000 as a client-server application
  
• The application was designed to support business functional modules including loan management,mortgage computation, loan payment and loan overdue payment
  
• The system was built on an object oriented architecture with a scalable interface for each functional module including separate tiers for business logic and data handling, and an extensive consistent error-handling strategy
  
• HIME QA developed detailed regression test cases such as multiple interest rate adjustment,load early payoff and overdue payment.  Testing was done in tandem with development, enabling HIME to meet the aggressive development and rollout schedule
  

Outcome:

The project was completed on time (in 10 weeks) and within budget, and business users were extremely satisfied with the resulting productivity gains. The application transition was seamless for China Construction Bank and to the end users of the American bank.
Because of the success of this project, HIME established a long term partnership with China Construction Bank, whereby China Construction Bank has provided HIME with other major projects such as Shanghai Housing Fund project and others.

Sales Win factors:

HIME’s major competitor for this business was YuXin Company, a NASDAQ listed company. HIME was selected based on:

• Industry knowledge in the personal loan business-HIME has a depth of experience in the bank booking process, which enables HIME to  quickly figure out the difference between the American bank and China Construction Bank in terms of interest rate calculations, interest rate adjustment, etc.
  
• Client-Server application design expertise-HIME has designed many client-server
  applications for banking clients, enabling them to design, test and implement a working
  solution in a shorter timeframe, minimizing any customer transition issues.
  

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