Westpac has chosen software from Logica for a centralised domestic payments hub.
The purchase was driven by a Reserve Bank requirement to settle retail transactions five times a day – as opposed to the once-a-day settlement that currently occurs.
“The impetus for this change predates the global financial crisis and was borne out of a desire to ensure the Reserve Bank is better placed to manage any distress or disruption,” an RB spokesman told Computerworld earlier this year.
“From an IT perspective, system alterations to accommodate the changes are required by all system participants, including the Reserve Bank.
“The extent of these system changes differs between the participants, depending upon the configuration of their existing systems.
“The Reserve Bank’s programme of system changes, in order to meet its commitments to the industry, is on schedule.”
The spokesman says settling retail transactions five times a day, rather than just once, will limit the volume and value of transactions “in the pipeline”, reducing risk and dampening the overall impact of any disruption.
Greg Byrne, head of business products and strategy at Westpac, says the choice of Logica will enable the bank to meet the compliance hurdle and to be more flexible internally.
“It will give us a product-orientated advantage,” he says.
“We had the choice between an internal build or buying software.”
The Logica All Payments Solution will help increase automation, streamline payments processing and drive down operational costs. It will also enable Westpac to launch new products and services to its 1.2 million customers.
Byrne says the bank went to tender.
“We’re now working through meeting industry requirements.”
He says the industry has come up with a number of different options.
Logica will provide support to implement the new system, which is expected to go live early next year.