BSN to undergo RM100 M business model transformation

BSN has tapped HeiTech Padu Bhd, BML Istirehat and Juris Technologies in embarking on a RM100 million Core Banking Replacement Programme.

The three firms will undertake the delivery of Core Banking and Loans Origination and Collections systems for both of Bank Simpanan Nasional's conventional and Islamic banking.

Bank Simpanan Nasional Chief Executive Datuk Adinan Maning said the 24-month programme was expected to reduce operational costs.

"We are full aware that a core banking system replacement, as a part of a business transformation, is not a minor task.

"However, we acknowledge the potential benefits which include revenue growth improvements owing to increased differentiation, cross sales, retention of high value customers, improved credit quality and so on," he told reporters after signing the agreement with HeiTech Padu.

He said the facelift of BSN banking system would directly transform its business model, and the way the bank run its business and improve its competitiveness, operational efficiency and regulatory compliance.

With a system that is modular, scalable and highly flexible, Adinan expected the programme to provide the bank much needed flexibility to innovate and adapt to the dynamic environment.

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