By Freya Purnell
New Zealand’s Kiwibank has announced it will invest more than $100 million over the next four years in a core banking system upgrade, the centrepiece of which will be the SAP for Banking solution suite.
Kiwibank is a wholly owned subsidiary of New Zealand Post and the country’s largest locally-owned bank.
With 840,000 customers, representing 23 per cent of New Zealand bank customers, Kiwibank has outgrown its previous banking systems, and is undertaking the implementation to position the bank to enable long-term, sustainable growth and lower risk.
On the project, Kiwibank chief executive Paul Brock said, “We are looking to the future growth of the bank and to make sure we have the right back office systems and infrastructure to support our strategic plan.
“The core system upgrade project will take place progressively to avoid any disruption to existing services, but ensure the bank has the capability to manage growth and increasingly-complex technological advances in the banking industry,” Brock said.
According to SAP, the SAP for Banking solution portfolio will support Kiwibank’s processes and improve the customer experience for retail banking products and services, as well as introduce enterprise-wide standardised processes designed to increase efficiencies and lower operational costs. The new platform will also enable the bank to expand its portfolio of financial services.
“We are excited to become part of Kiwibank’s success and innovation story, and look forward to continually delivering value to the bank and to their customers through long-term strategic partnership and the SAP for Banking set of solutions,” said Graeme Riley, managing director, SAP New Zealand.
