IT services and business consulting firm, Tata Consultancy Services, has won a $13.6 million Reserve Bank of Australia (RBA) tender.
As per the terms of the agreement, TCS will provide RBA with the provision of and implementation of its core banking solution, BaNCS with the two year contract ranging from 24 March until 30 June 2019.
The awarding of the contract comes over 18 months after the RBA tendered for a replacement core banking solution, a solution designed to process in excess of 320 million payment and 25 million collection transactions each year.
As reported by sister publication CIO, the RBA was seeking a more “contemporary” architecture and platform to provide greater responsiveness to customer requirements.
“As the services must support critical Australian government payment transactions, it is essential that the respondent has a substantial and proven track record in the supply and implementation of the solution,” expression of interest (EOI) documents stated at the time.
This was in addition to what was provided in its 2014 Annual Report, with RBA then working to upgrade its banking systems and re-engineer a number of business processes for cost effectiveness.
RBA also outlined its requirements previously, requesting that the proposed core banking system be hosted on the RBA’s infrastructure, preferably on a Windows- or Linux-based system, and provides CRM, account origination, account structure, balance checking, limits and transaction posting functionality.
In addition, RSA wanted the core banking solution to be based on a “supportable” modern programming language, virtualisation capability achieved with VMware tcServer or Oracle WebLogic, and support for manual transaction processing, invoicing, cheque processing, and counter teller services.
But the bank declined to comment if these requirements were achieved with TCS.
TCS BaNCS is a suite of financial applications solutions, which according to TCS, has been adopted by 370 banks in 80 countries including Westpac, CUA, and the Commonwealth Bank in Australia.
ARN reported in 2013 that CUA replaced its 20-year core banking system with TCS’ for a “modern, scalable and configurable” system that provides the ability to improve internal processes and efficiencies, facilitate enhanced customer service and enable product development.
A spokesperson for TCS said BaNCS is a solution that can help RBA develop a customer-centric business model, simplify operations, enable innovation and manage risk and compliance effectively.
In addition, it comprises loans, deposits, wealth management, digital channels and risk and compliance components.
“Meeting the complex demands of a discerning customer, keeping up with disruptive entrants and an ever-increasing swathe of regulations has made it imperative for banks to choose what stance they wish to adopt today, be it as a trend setter or a fast follower,” TCS said.
RBA declined to comment about the contract.