Briefs

UCO-HP tie up to roll out CBS

The Kolkata-based UCO Bank has appointed Hewlett-Packard (HP) for rolling out its core banking solution (CBS) in 1,000 of its branches. As per the arrangement, HP will deploy information technology infrastructure and applications in the designated branches for a period of five years. The bank has selected HP after an extensive selection process.

HP will also provide the hardware support for the project. The bank has a network of over 1,743 branches with four overseas branches in Singapore, Malaysia and Hong Kong. It is the first public sector bank in the Eastern region to implement CBS.

Infosys’ Finacle CBS will be the platform for the transformation. The Finacle implementation on HP’s computing technology will help the bank’s both domestic and global customers. It will enable the bank implement a comprehensive and integrated solution for centralised banking and alternate delivery channels. CBS will cover retail banking, corporate banking, cash management services, treasury and other areas.

The customers can access the products and services of the bank on a 24x7 basis. They will have access through multiple delivery channels ranging from Internet banking to mobile banking, SMS alerts and integration with existing ATM switch for ATM connectivity. The bank envisages servicing about 17 million customers and running 21 million transactions per day by the end of five years.

Further, HP will design, build and manage a data centre at the bank’s head office in Kolkata that will host the server, storage and connectivity infrastructure and provide disaster recovery and business continuity solutions for the bank. Additionally, HP will design, deploy and manage the bank’s network implementation.

Commenting on the CBS rollout, V Sridar, Chairman & Managing Director (CMD), UCO Bank said: “Aligning our business with IT is a giant leap for the bank to compete in today’s global environment. Our collaboration with Hewlett-Packard will help us transform in becoming a top-class bank, achieve sustained growth in business and profitability and provide excellent customer service. Moreover, it will help us in streamlining marketing efforts and customer-related activities.”

The bank is likely to spend around Rs 400 to Rs 450 crore for the project, though the CMD declined to comment on it. “CBS would cut the cost of transaction by 50 percent. Besides, customers would be offered various add-on facilities such as Internet banking and mobile banking among others,” Sridar said. The bank will install 88 more ATMs in the current fiscal.

The CMD said that the CBS roll-out process would start immediately. The pilot will be kicked off in select branches shortly and by the end of March 2007, 125 branches will be brought under it.

He said that most of the bank’s back-office operations would be taken over by CBS. “After the implementation of CBS, we will engage some of the idle workforce in sales and marketing activities, while some will be trained to handle the CBS system,” he added.

Balu Doraisamy, Managing Director, Hewlett-Packard India said: “CBS implementation would help UCO Bank in gaining competitive edge in the banking industry. The technology would help the bank to substantially reduce business risk and increase efficiency.”

—Joy Roy Choudhury