Mahesh Sharma | July 29, 2008
ANZ Bank's new core banking platform project in Asia will proceed as planned despite the turmoil facing its business.
Full steam ahead for core banking upgrades in Asia, says ANZ Bank
ANZ CEO Mike Smith yesterday told investors a $1.4 billion blowout in debt provisions could slice 2008 profits by up to 25 per cent and as a result its Asian expansion plans would be delayed.
The bank is still targeting 20 per cent of the group’s earnings to be generated by its Asian business by 2012.
A spokeswoman for the bank said the changes would only affect its acquisition plans over the next year or two and the rollout of Infosys’ Finacle core banking platform across its Asian businesses would continue unaffected.
“We are continuing to invest heavily in Asia to accelerate organic business growth within our own businesses and build value through our existing partnerships in the region,” the spokeswoman said.
"We have just opened a new headquarters for our Indonesian business in Jakarta and have expanded our presence in Hong Kong.”
ANZ's presence in Indonesia dates back to 1973 when ANZ Grindlays Bank established a representative office in Jakarta, according to the bank's website.
ANZ is about to overhaul the core banking platform at its Indonesian arm, having just completed an implementation in Laos, and expects the rollout to be completed over the next two to three years.
The spokeswoman said the bank is implementing a number of measures to improve its debt collecting ability, including improving its collections software capability and using outbound voice technology and SMS reminders to contact borrowers.
Last week The Australian revealed that ANZ New Zealand is considering a core banking overhaul as part of a transformation plan. It is unclear if it the local unit would follow suit.