Westpac quits Databank project
PA Wellington After spending tens of millions of dollars during the last six years, Westpac says it intends to suspend support for Databank’s $lOO million-plus IBIS retail banking software redevelopment project just before it is completed. Testing is expected to begin early next year and the pilot project is scheduled for September-October. Westpac is one of four banking shareholders of Databank, set up to act as a cheque-clearing and data processing house for the banks. The other three are the BNZ, ANZ and National. The four banks have until now evenly split the development costs involved with IBIS, the integrated banking information system, which is set to revolutionise retail banking by offering highly sophisticated online real-time functions. The four banks were expected to implement the IBIS system and were free to develop it later to suit their own competitive needs. The development costs alone of the software project amounted to S2SM last year.
Westpac’s deputy general manager of •management services, Mr Hany Price said Westpac had taken the decision because ‘‘we are unsure of, or want to
convince ourselves, that the project’s benefits outweight the level of funding required.” > Since the project began, the financial market has been deregulated and more technological options have become available. Mr Price emphasised that Westpac wanted to examine the options available to it and the IBIS project had not necessarily been dropped. In Australia, Westpac is spending millions of dollars on a giant computer project called CS9O and it is possible Westpac here will adopt the same methods. Asked whether the decision to suspend IBIS involvement had been dictated by Australia, Mr Price said the two banks worked closely together but the decision had been taken in New Zealand. The project is divided into three phases. First stage — involving the management of time deposits — was implemented in all the banks by last March. Second stage, covering term lending and securities, has just been implemented by BNZ and National but Westpac will not be going ahead with it. Final stage covers customer accounts and is scheduled for full implementation
in 1991. Databank's chief executive officer, Mr David Aiderton, said he was disappointed to learn of Westpac’s surprise decision. “But Databank has always recognised that the priorities and global directions of overseas-owned banks will sometimes lead to decisions that may affect their degree of commitment to projects under development,” he said. A three-man team from the Bank of Montreal had recently given the IBIS project a glowing review. Calling IBIS one of the most advanced approaches in the world, a senior vicepresident of the Canadian bank, Mr John Meadows said: “They are way out in front in terms of application. There’s more product out there than I have seen just about anywhere in any bank I have been to.” Mr Aiderton said Databank would continue testing and implementation for the other three banks. National Bank’s branch network manager, Mr David Stevens, said the remaining banks were examining their position after Westpac’s decision, which came as a complete surprise. The National Bank had no intention for now of withdrawing from IBIS.
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Press, 5 December 1989, Page 46
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518Westpac quits Databank project Press, 5 December 1989, Page 46
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