The Research And Implementation Of Intermediary Business E-Banking System

The developing of financial industry made the competition in traditional deposit and credit market more and more serious for commercial banks. The competition increased operation cost without carrying corresponding benefit. As foreign banks expanding their business in China, some local commercial banks even show negative business increase in traditional market. For the survival and development, commercial banks need a new revenue point. Intermediary Business was found to fill the vacancy.The intermediary business was first practiced in 1970s, with Financial liberalization and Financial Innovation as the background. Compared with traditional business, intermediary business can reduce the capital consumption of commercial banks, decreased credit risk and ensure commercial bank with a stable source of cash. As the intermediary business began to take more share in commercial bank's operation revenue, bank can gain higher rate of return on common stockholders' equity. Since 1990s, intermediary business have developed rapidly in foreign commercial banks and contributed more than 30% of total revenue.Intermediary Business is quite different from traditional deposit and credit business. Commercial banks need to response rapidly according to changes of market conditions and provide flexible and customized revenue distribution services. Due to the giant amount of intermediary business, commercial banks need to maintain the service in traditional business as well as fulfill new demands and without a significant costing increase. The domestic regulator also published standards service fee management. From the inner view of commercial banks, branches needed to be stimulated in order to ensure the implementation of intermediary business development strategy. All those new demands require the information system of commercial banks to change.In current status, intermediary business'fee charge function doesn't have many choices, and the deal process is quite complex as the whole process may takes days. There is no complete monitoring mechanism over intermediary business fees as commercial banks lack of sufficient self-control and the revenue distribution inside banks is unbalanced.In order to fix these problems, a solution with five measures is proposed here. Develop more choices of charge method based on current structure of e-banking system to fit the diversified business demands. Develop automatic charging system to reduce the workload of business process personnel as well as operation cost. Realize the revenue distribution inside bank to impel branches increase shares in intermediary market. Establish a parameter management system to meet with the regulator's requirement and monitor the operation of intermediary business. Optimize the business settlement inquiry to reduce system pressure.This solution realized based on the original e-banking system structure, integrated the current resources of internal management system, service delivery agent system and core banking system.Two business modules were added in the internal management system: automatic charging module and parameter management module. The automatic charging system can accept e-merchants deal contracts, establish relationship between customer's settlement account and e-merchants'account and finish cash transfer. The parameter management system can monitor and control parameters in whole bank range, optimize current information of e-merchants, added charge rate and method setting functions.Service delivery agent system can scan the e-business charging order list according to the e-merchants'information maintained by the internal management system. It can total deal charges by day and by merchant and settle the fee regularly for merchants who chose period accumulate charging method. It also can generate the charging order simultaneously with deal order for merchants who chose this charging method. The service delivery agent system generate charging order and revenues distribution order regularly in batch and generate refund order by day and by merchant in batch.The core banking system accepts order from service delivery agent system and finishes related account operation.After the design and programming of the solution, a system testing was taken place in order to find bugs in function design, system design and programming. Serials test points were designed based on the analysis of business process, and testing methods were designed accordingly. Before the test, a test environment was established with hardwares and softwares. This is completely separated from production systems to ensure the stable operation of current business. Test data were also prepared based on analysis of business and systems, included deal data, account data, parameter and so on.Before the system officially put into production, some account information was inputted. It's because commercial banks used to settle the intermediary business charge manually without fixed settlement account.This solution changed the way commercial banks develop intermediary business. Banks used to have single charging service, which can not fulfill the customized demand, and unbalanced revenue distribution discouraged branches to identify potential customers and develop intermediary business.The solution is realized based on the change and optimize of e-banking systems, three systems was involved and fifteen business modules are designed and implemented. The solution increased e-banking system's operation effectiveness and system stability with the operation cost decreased. The solution increased the flexibility of charge function and parameter management. The e-banking system can now provided better support for business development and gain more intermediary market shares.