KAZ Computer Services shares jumped 11 cents yesterday following the announcement of a $15-20 million dollar outsourcing contract with ANZ to provide an image processing system via its subsidiary, Ausdata.
The contract will provide ANZ with a Proof of Deposit (POD) processing system to clear cheques, deliver reconciliation capabilities while providing full digital images of all cheques.
Ausdata's POD system, entitled VIPS (Voucher Image Processing System) is the only application designed specifically for the Australian marketplace. Typically driven by US-made solutions, modelled on the US market Charles Dunn, director of new business for Ausdata says local banks are forced to adapt their business to the software rather than vice versa.
"We're introducing a revolutionary new system that delivers substantial cost benefits compared to other solutions," says Dunn.
Ausdata won the contract through tender in 1998. A six month pilot program was recently completed and the national roll out will begin in June. The project is due for completion within six to eight months.
Peter Kazacos, the managing director of KAZ is pitting the system as "an attractive growth opportunity for KAZ." ANZ is expected to extend the rollout to include its NZ branches and, with a life span of 10 to 15 years Dunn expects other financial institutions to follow suit.
The system will store and manage 750 thousand cheques daily. In addition, plans are already underway to adapt the technology to overseas banking, credit card and remittance processing.
VIPS has a modular construct providing a more scalable approach to changes in transaction volumes. With the 5 per cent decline in cheque usage currently impacting on the Australian market, Dunn sites this as an opportunity to increase productivity.
KAZ is becoming something of a dominatrix in the financial sector. In November, it secured a contract with the Reserve Bank of Australia to process government cheques as well as scoring a development deal with the Thai Government and three superannuation schemes run by the Thai Farmers Bank.
Photograph: KAZ managing director Peter Kazacos.