Bendigo Bank restructures its processing deal
- 23 August, 2005 13:00
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Bendigo Bank has signed an agreement in a move to boost its competition with the major banks and other providers of direct debit, direct credit and payroll services.
Signing a deal with Unisys, the bank now plans to leverage its back-office utility for the processing of direct credit and debit transactions through the Unisys Payment Services Limited (UPSL) operation.
According to a spokesperson for Unisys, Bendigo Bank has had a relationship with Unisys for sometime through its UPSL operation, and extending its agreement has "restructured and turned it around" in order to meet new priorities.
The new agreement aims to allow the bank greater access to increase its market share as a Tier 1 member of BECS (Bulk Electronic Clearing System). Bendigo Bank chief general manager of group delivery Richard Hasseldine says the amended relationship with Unisys will give the organisation a major advantage.
"Unisys operates the back-office services very efficiently allowing Bendigo Bank to offer competitive, direct entry services," Hasseldine said.
"Those same efficiencies also mean Bendigo Bank can pursue new direct entry business with greater ease within the financial services community.
"The smaller banks, other financial institutions and many companies are always looking for more efficient services that cost less. We can now provide them."
Unisys managing director A/NZ Mike Ettling said that the value of outsourcing financial services back-office functions lies in this type of strategic benefit. "In our experience, Australian banks and companies want much more than cost-effective service delivery - if service providers don't provide this, they don't last for long," Ettling said.
"Our customers want strategic benefits that give them a competitive edge, let them make strategic moves on the market, let them undercut competitors, and let them build stronger relationships with retail and institutional customers."
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