Published Date: November 01, 2012
New Core Banking Solution to Improve Customer Service and Operational Efficiency
Addis Ababa, Ethiopia; Bangalore – November 01, 2012: Bunna International Bank, a leading player in the Ethiopian market, today announced the selection of Finacle™ core banking solution from Infosys for its transformation journey. Finacle will enable the bank to integrate its front and back office operations and deploy a state-of-the-art loan origination system. This will include automating the credit check and loan approval processes for risk-free and efficient loan disbursals. This transformation will help Bunna improve the overall banking experience for its customers.
Finacle will also complement the bank’s aggressive growth plans, which involves doubling its network to 35 branches within the financial year. This solution will give the bank an edge over the competition by helping it meet customer and market demands with greater agility. Automated services of the core banking solution will ensure faster processing of front and back office requests and an improved turnaround time for customers. With this solution, the bank will also be able to bring to market targeted and innovative services faster than ever before.
Bunna’s decision to deploy Finacle comes at a time when the National Bank of Ethiopia is mandating its member banks to automate their services. Part of the mandate calls for a National Payment System to facilitate automated settlements and inter-bank money transfers. With Finacle, Bunna is not only well positioned to meet the regulatory demands but also has the added benefits of automating its loans and deposit operations. Using Finacle will allow Bunna to facilitate real-time processing of transactions and settlements of payments, which sets the stage for future innovations like mobile wallets and agency banking.
“We have always believed that technology delivers a competitive edge in banking,” the President of Bunna, Ato Eshetu Fantaye, said. “Finacle gives us the flexibility we need to grow. This new solution, which will be implemented in a relatively short period, is the key to helping us become far and away the best bank in Ethiopia.”
“Being chosen as Bunna’s long-term technology partner is an exciting opportunity for us,” said Amit Dua, Associate Vice President and Head – Client Services EMEA, Finacle, Infosys, “As a forward-looking bank, Bunna has rightly chosen to leverage technology to power business transformation and growth. Finacle is the technology platform that can serve as an effective foundation for Bunna and other banks in Ethiopia as they find ways to engage more consumers.”
As the local business partner of Infosys, MKTY IT Services Plc. Ethiopia played an integral part in introducing Finacle to the Ethiopian banking community. Since 1994, MKTY has been active in delivering technology-driven business solutions for the banking and financial services industry.
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Bunna International Bank S.C. has joined the Ethiopian banking industry following the favorable economic developments witnessed in the country during the last decade and the growing need for financial services. The bank obtained its license from the National Bank of Ethiopia (NBE) on June 25, 2009 in accordance with Licensing & Supervision of Banking Business Proclamation No. 592/2008 and the 1960’s Commercial Code of Ethiopia. The bank officially commenced its operations on October 10, 2009 with subscribed & paid up capital of Birr 308 million and Birr 156 million, respectively. Bunna International Bank has more than 11,200 shareholders, which makes it one of the strongest public-based private banks in Ethiopia. Continuing on a successful three years in the banking industry, Bunna International Bank (BIB) has reported a profit after tax of 30.03 million Birr in 2011/12 fiscal year. This is a 54.7 pc increase from the 19.4 million Birr collected the previous year. The Bank which was the first from the recently opened banks to report a full year of profit in its first year of operation when it came into existence in 2009, has a made a 41.3 million Birr before taxes in 2011/12. This achievement comes from a growth in income and an effort to limit expense, according to the Bank’s annual report. Bunna currently has 1. 4 Billion Birr in Asset and paid-up capital 252.5 Million Birr. Its plan is to raise the capital by 75 million Br annually to 600 million Br in 2016.
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