IBM Global Services on Monday announced a 12-year, $50 million IT services contract to support Fiserv in a groundbreaking cheque processing agreement with three of Australia's four largest banks. Fiserv is a leading provider of data and cheque processing services in the US.
Implementation work for the $50 million contract has already begun.
Fiserv is providing cheque processing services to Vipro, a consortium of banks which includes the Commonwealth Bank of Australia, National Australia Bank and Westpac.
Financial institutions using the service will be able to manage the costs of cheque processing more effectively, without making additional capital investments.
IBM Global Services will provide Fiserv with a full range of IT services, covering infrastructure, networks and desktops, as well as application development and management. In addition, IBM will provide e-Business hosting services from its Australian data centres.
Fiserv Solutions of Australia CEO, Ken True, said the goal is to leverage IBM's existing infrastructure "rather than create something from scratch" in the payments industry.
IBM Global Services financial services sector executive, Rob Lee, said the two companies are creating a new and efficient operating model for financial transactions.