IBS Journal February 2015
Myanmar Economic Bank searches for core system
Myanmar Economic Bank (MEB), a government-owned insti- tution, is the latest bank in the country to undergo a mod- ernisation of its underlying software. The bank has tendered for a consultant to procure and implement a new core bank- ing system, with a deadline for interested parties having been set for the 25th January. This follows on from a num- ber of domestic banks which have also carried out system modernisations over the last few years, including the Central Bank of Myanmar, which partnered with Japanese firm NTT Data at the beginning of 2014 to roll out a new platform. Another local bank to look for new software is Yoma Bank, which in October last year tendered for a new core banking system. This selection process is now thought to have con- cluded. Myanmar has seen a boost in investment over the last
few years, with the World Bank’s International Development Association (IDA) and foreign benefactors providing loans and grants to the country to carry out infrastructure projects. MEB’s core system modernisation will receive $9 million in funding, as part of a wider initiative dubbed the Moderni- sation of Public Finance Management project, which has a budget of $55 million ($30 million from IDA and $25 million in private funding). In a document outlining the proposals of the project,
MEB states: ‘Currently, the effectiveness of MEB’s operations is affected by its outdated ICT systems characterised by ad hoc software solutions (thirteen different types of software are used, but none are inter-linked) and a lack of connec- tivity, hardware and intermittent electricity supply in the branch network.’ MEB has attempted to resolve this with an
interlinking system in seven of its branches, but this requires new dedicated accounts to be opened with limited servic- es. There are also issues with reporting, with it taking up to three months for MEB to present quarterly filings to the Cen- tral Bank. Myanmar’s economy has been growing steadily over the
last few years, with the latest figures from the Asian devel- opment bank suggesting an annual GDP growth of nearly eight per cent, bolstered by exports of oil and natural gas. Political reforms have also aided development, with Myan- mar becoming more democratised and open to international investment since the demise of the military Junta. The open- ing up of the banking sector in particular has been one of the facets of this, with a number of Japanese banking groups looking to open up shop in the country this year. In addition, a number of new domestic banks have
emerged in the last few years, with several opting for cen- tralised core banking applications from international suppli- ers. Oracle FSS in particular has been the beneficiary of this, picking up a handful of deals such as with Kanbawza Bank and Tun Foundation Bank. Start-up Ayeyarwady Bank, mean- while, claimed to be the first domestic bank to launch on a centralised system in 2011. And Myanmar Livestock and Fish- eries Development Bank opted for India-based 3i Infotech’s Kastle Core Banking platform in 2012. There are also plans to establish a new stock exchange in
the country, Yangon Stock Exchange, with UK-based firm Tor- stone Technology involved in the development of the tech- nology platform which will underpin the new venue with its Inferno system. This is due to launch in October this year.
Yangon ©kaveman743, Flickr
© IBS Intelligence 2015
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news: system selections
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