N.Z. banks ready for EFT pilot scheme

Press, 26 June 1984, Page 27

N.Z. banks ready for EFT pilot scheme

Electronics funds transfer has suddenly become a reality in New Zealand with the announcement by two organisations that they are implementing or considering implementing EFT networks.

New Zealand’s trading banks have announced that they are ready to start a pilot scheme limited to a small number of outlets using the resources of their computing co-operative, Databank Systems, Ltd.

At the same time, the formation of a new company was announced that intends to provide an EFT service in New Zealand.

It is called Electronic Funds Transfer, Ltd, and its shareholders will be Challenge Computers, Ltd, United Building Society and Datacom Group, Ltd (formerly CBL Holdings, Ltd).

Challenge Computers, together with Armourguard, has provided the operational facilities for the Anytime automated teller machine (ATM) consortium which comprises the Post Office Savings Bank, Countrywide Building Society, Marac, Broadbank, Southland Building Society, and Southern Cross Building Society. The United Building Society pioneered the introduction of ATMs in New Zealand and Anytime and United between them have installed 75 of these

machines in New Zealand. Datacom Group has wide experience in the design and operation of data communication networks and in the provision of computer and software services to major companies throughout New Zealand.

The initial objective of the company is to enable the card-holders of Anytime and the United Building Society to use their cards in any of the automated teller machines owned by the two groups. At present only Anytime cardholders can use the Anytime automated machines and United cardholders the United money machines. It is planned to have this new service operating before the end of the year. A contract has been signed with Tandem Equipment, Ltd, of Cupertino, California, for the computer hardware and MIS Pty, Ltd, of Melbourne, for the supply of a specialised software package called Base 24. Tandem Equipment was selected because of its nonstop capability due to the provision of multiple processors. Additional processors can easily be added as the demand for the services grow.

Base 24 software running on Tandem Equipment is used by many big financial institutions in the United States and has been selected by the ANZ Bank and West-

pac in Australia and Databank Systems, Ltd, in New Zealand for the provision of their proposed electronic funds transfer operations. The combination of hardware and software provides an electronic switch which allows financial transactions from the automated machines to be routed to the appropriate institution’s computers. Elaborate security provisions are included in the software to safeguard privacy and prevent fraud. The company has already instituted a study to assess the feasibility and economics of providing a wide range of electronic banking services which will be open to other financial institutions and credit card operators who may wish to participate.

The company will also be investigating the possibility of connecting point-of-sale systems to the switch and the introduction of home banking. In this regard a close liaison with the Post Office will be maintained as the studies will centre on an extensive use of its X. 25 packet-switching network.

The chief executive of the company will be Mr Bob Roberts. He was employed for a long period by ICL and more recently by Tandem Equipment. The head office of Electronic Funds Transfer, Ltd, will be in Parnell, Auckland.