October 27, 2004

About the CIFTEE The CIFTEE plays an important role in enhancing the informatization level of China's financial institutions as an exchange and communication platform for financial enterprises and IT manufacturers. The 2004 CIFTEE event was held September 12-15, 2004, at the Beijing Exhibition Center, and was hosted by the China Financial Computerization Corporation of the People's Bank of China. Other sponsors included the technology divisions of 27 government-owned financial institutions, insurance companies, and asset-management companies. This is the seventh year Cisco has participated in the CIFTEE. With focused technology and customer needs, Cisco brings its advanced technology and customized networking solutions to CIFTEE every year and demonstrates how networking and information technology can help financial services firms face the competition and challenges in the post-WTO era and enhance their service quality and core competitiveness.

The financial services industry has long been an early adopter of Internet and information technology solutions. In China, the premier event to showcase how technology is benefiting financial services companies is the China International Exhibition on Financial Banking Technology & Equipment (CIFTEE).

At the recent CIFTEE event held in Beijing in September, Cisco Systems and IBM, two of the most trusted global names in information technology, lit up the show with a vibrant two-storey showcase of next generation integrated banking solutions.

The joint exhibition featured one of the results of the two companies' global strategic alliance –
The IBM and Cisco Branch Transformation Networking solution.

The two-storey display depicted a model of an intelligent bank branch, which allowed visitors to experience the improved convenience of the "smart bank," including self-service capabilities using Cisco IP telephones and a new generation of Web-based automatic teller machines (ATMs). Visitors also were able to test the new client identification system based on Radio Frequency Identification (RFID) technology, one-on-one multimedia selling, and remote professional consulting services.

In addition to exhibiting its advantages to banking customers, the display also highlighted how the IBM and Cisco Branch Transformation Networking solution – based upon the Common Component Resilient Network Architecture (CCNRA) – empowers financial institutions to update, replace, and reengineer branch-office IT systems.

Developed by Cisco and IBM, the CCNRA describes the underlying components needed for disparate computer systems and networks to work together. These five primary components are content delivery networks (CDNs), IP telephony, pervasive computing, content collaboration, and network convergence. The CCNRA serves as a guide to the ongoing network planning, design, and implementation for new product, service, and application deployment. It enables transparent integration with the existing enterprise environment and builds on past investments. Therefore, the integrated smart bank would possess an innovative business model, able to respond to market demands quickly, discover valuable information from data, and lower operational costs by taking advantage of automated techniques.

The IBM and Cisco alliance embodies the "service-on-demand" philosophy of IBM and the Cisco "Branch of the Future" and "Business Resilience" models for branch transformation and data-center coordination. The two companies envision the integration of a bank's operations, to encompass the workflow of its partners, suppliers, and clients, in order to enable the bank to rapidly respond to any customer needs, market opportunities, or outside threats. By applying the five primary components of the CCRNA, IBM and Cisco Smart Banking clients can focus on their core business initiatives while quickly responding to market changes, maintaining adjustable cost structures and workflow, and retaining flexibility with secure operations.

"To a large extent, the use of technology is the key for companies to operate within a 'on demand business' environment," comments James Chin, Vice President, Financial Services Sector, IBM GCG. "With years of industry experience, IBM is dedicated to providing advanced information technology and solutions for its clients in financial services through its partnership with Cisco, in order to fully support the future development and business needs of the Chinese banking industry."

Raymond Lau, vice president of Cisco Systems China, states that Cisco is committed to providing innovative networking solutions that will adhere to the business needs of customers and professional support in the areas of design, implementation, application, and performance optimization. At the same time, Cisco and IBM have established a long-term business partnership globally and are working together to better satisfy the constantly changing demands of banking customers by providing clients intelligent banking solutions.

IBM and Cisco Systems previously collaborated during the Cisco Asia Pacific Banking Executive Summit in January 2004. The goal of the summit was to offer a platform for leading international banking institutions, industry experts, and technology solutions providers to share their successful experiences. The continued collaboration between the two companies originates from their shared vision for turning retail bank branches into a truly service-oriented environment providing a superior experience for customers.

This alliance combines IBM's global leadership in the services marketplace and portfolio of hardware platforms, middleware, and management software with Cisco's leadership in networking products and IP telephony for the Internet. By fusing industry insight, innovative products, and rapid-delivery capabilities, the IBM and Cisco partnership continues to deliver the means for their clients to execute their strategic business visions.