PHOTO CAPTION: HI-TECH BANKING SYSTEM: ICT solutions provider HeiTech Padu Bhd has won a RM63.6m bid to provide a replacement core banking system for government-owned Bank Simpanan Nasional Bhd (BSN). (From left) BSN general manager/chief executive Datuk Adinan Maning, Secretary General of Treasury Tan Sri Dr Wan Abd Aziz Wan Abdullah and HeiTech executive director Safiee Mohammad at the signing ceremony in Kuala Lumpur (pic: Ismail Che Rus)
ICT solutions provider HeiTech Padu Bhd has won a RM63.6 million bid to provide a replacement core banking system for government-owned Bank Simpanan Nasional Bhd (BSN).
The deal will see HeiTech Padu and its partners BML Istisharat Sdn Bhd and Juris Technologies Sdn Bhd undertake the delivery of the core banking and loans origination and collections systems for both the conventional and Islamic banking products as well as their services.
BSN chief executive officer Adinan Maning said it took the bank two years to decide which company to award the contract to, as it was a "difficult" decision.
The change, however, was deemed necessary as the current system in use by the bank was slow in getting products to market, compared to other banks.
"Hopefully in two and a half years' time, maximum, we will be able to have a system that will help us to be very efficient and improve our service level," he told reporters after the signing ceremony in Kuala Lumpur yesterday.
The total amount invested collectively is approximately RM100 million, said HeiTech group CEO Harris Ismail.
The systems will be implemented in all BSN branches nationwide over a period of 24 months and will include a Shariah-compliant module.
Harris said the contributions from the deal would make up approximately 10% of HeiTech's revenue for the current financial year.
"We don't expect to make a profit from this as we consider it to be part of our national service," he said.
Harris said HeiTech expects the system and module to contribute positively to the company's future earnings once the intellectual property patent is obtained, as the system could be implemented in takaful and insurance.
For now, however, the deal with BSN is exclusive, he said.
[By Farah Saad, The Malaysian Reserve; Jan 18, 2012]
