ibs news
IBS Journal April 2015
Misys picks up core banking system deal
As the banking sector in Myanmar begins to open up, more banks here are making core banking system selections. The latest is Yoma Bank, which initiated its search for a new solution last year. The bank has opted to partner with Misys, which will supply its Fusionbanking Essence core system. Yoma Bank is the first known customer for Misys in the country, and one of the first takers of the newly relaunched Fusionbanking Essence. The project is backed by a $5 million
loan granted to Yoma Bank by an invest- ment vehicle of the World Bank, Interna- tional Finance Corporation (IFC). The system selection has been ongoing since June last year, with system demonstrations being car- ried out in August. This was followed by an RFP stage, with two vendors making it to the final shortlist for a proof of concept exer- cise in January this year. The deal was signed
off in the last few weeks. The project is expected to last between
twelve to 18 months, spanning retail and SME banking, online and mobile channels and trade finance, with the vendor’s Fusion- banking Trade Innovation system. The core system overhaul will also coincide with a review of the bank’s risk management pro- cesses and corporate governance. The bank is keen to adhere to international best prac- tices, so it will adapt its business processes to align with the Misys system. Yoma Bank, launched in 1993, was one of the institutions affected by the 2003 financial crisis in Myanmar, having its licence severely restricted by the regulator and hav- ing to rely on fee-based services such as remittances. It regained its licence to accept deposits and lend in 2012, and hopes to reposition itself as one of the country’s
largest banks in the retail and SME banking space. It has a branch network of 54 outlets and is owned by the local business tycoon, Serge Pun, via his company Serge Pun and Associates Group (SPA Group). Yoma Bank is the latest of several domestic banks to adopt new core banking systems over the last few years. Govern- ment-owned Myanmar Economic Bank is known to be in the middle of a selection process, whilst the Central Bank of Myan- mar is in mid-implementation of a new core system with Japanese vendor NTT Data. Of the international vendors, Oracle FSS has established the largest market share, but other hopefuls (including newcomers to the international arena, such as Diasoft) are now eyeing the market as foreign banks are due to be given the green light to open up oper- ations in Myanmar.
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