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Core banking systems country analysis AUSTRALASIA


The main activity in this small region has been among large banks, with these now settled into projects after core banking selections a few years ago. There is some activity among mid-tier and smaller banks and there have also been some deals for wealth management and treasury/capital markets. A total of 7 deals got signed in 2015, including 1 on a hosted basis.


Independent commentary by country


Australia The large Australian banks had been circling the core systems market for several years in the early to mid-2000s. Their occasional RFIs and RFPs had caused excitement but had not resulted in decisions. That all changed in 2008. Hindered by the typical legacy of tier one banks, they finally bit the bullet. Commonwealth Bank of Australia (CBA) took SAP’s Deposits Management and Loans Management products, ANZ went for Infosys’ Finacle, and National Australia Bank (NAB) signed for Oracle FSS’s Flexcube. There was a subsequent twist at the latter, as the bank came to work with the supplier on a new core banking system (Oracle Banking Platform). Another Flexcube taker here was Suncorp, which also was later cited as a participant in the new Oracle FSS platform development. Each large Australian bank opted to put the core


systems into sites in Asia or other subsidiaries at the outset but the ultimate goal, if things went well here, was to apply them at home as well. CBA’s strategy includes Callataÿ & Wouters’ Thaler (now owned by French group, Sopra) for some outlying countries, following the bank’s success with this system in Indonesia a few years earlier. This bank also went for a separate system for India during 2009, choosing TCS’s Bancs. Taking those large Australian banks in turn, ANZ had


two legacy infrastructures, spanning its domestic Australian business and that of the acquired National Bank of New Zealand. In New Zealand itself it had separate infrastructures. The decision to bring onto one platform ANZ New Zealand


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and National Bank of New Zealand (purchased from Lloyds TSB for $4.9 billion in 2003) was made public in late 2010. It was decided that FIS’s Systematics, used by National Bank, would support the operations of both subsidiaries, having gained the nod over ANZ New Zealand’s core banking system, Hogan from CSC. ANZ estimated that the IT consolidation and management restructuring in New Zealand would cost around NZ$220 million ($165 million). Consolidation was apparently completed in 2012. FIS claimed it was done without a single ‘high-priority incident’. In parallel, ANZ selected Finacle for its international


operations in 2009 after an RFP process that commenced in October the previous year. ANZ went live with Finacle during 2009 in Laos and the bank set up a team in Singapore to push on with additional country projects. A spokesperson at ANZ confirmed in March 2010 that the project was progressing well, with an implementation in China at the planning stage, to be followed by Singapore. Work at the bank’s Indonesian site was in progress. Finacle has been replacing a host of systems including those that ANZ inherited through the acquisition of RBS’s assets in six Asian countries in 2009. Fiserv’s ICBS/Signature is among them.


CBA has been pouring money into its core banking


project. Its half-year results, announced in early 2011, revealed that a further $370 million had been added to the venture which meant the bank’s spend on its IT modernisation, with SAP’s software at the heart, had now officially passed the $1 billion milestone and had already made the first $1 million step towards the second billion. In addition, the deadlines were pushed back by a year. The


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