NTT DATA to Develop Core Banking System for Central Bank of Myanmar Supporting to construct the country’s financial infrastructure
NTT DATA Corporation signed an agreement on Feb. 27, 2014 with Central Bank of Myanmar to develop a core banking system providing functions such as fund and government bond settlement.
This is a Grant Aid project to be implemented by the Japan International Cooperation Agency (JICA), which duly verified the contract on Apr. 25. NTT DATA has, after the contract was signed, already started developing the system with a view to completing the project by the end of 2015.
The Japanese government, in cooperation with the private sector, is seeking to help the Republic of the Union of Myanmar modernise its financial sector and the development of the core banking system is part of this endeavor. Operation of the central bank, an IT system to support it and human resource development will be offered as a comprehensive package.
The Japanese government, through its Prime Minister Shinzo Abe’s trip to Myanmar and Myanmar’s President Thein Sein’s visit to Japan, has pledged to provide economic cooperation with the help from the Japanese private sector to the Republic of the Union of Myanmar, whose economy is expected to grow rapidly as the country promotes democracy, and development of the country’s financial infrastructure is one of such areas.
Myanmar, after a long governance by the military, is transitioning to a democracy under President Thein Sein and financial infrastructure is not yet developed very much with most of the work at Central Bank of Myanmar currently handled manually.
Modernisation including that of the financial sector is essential for Myanmar as the country seeks to expand its economy and development of the core banking system for its central bank is a first step toward this goal.
Overview of the Core Banking system development
NTT DATA will develop a core banking system that connects the central bank with 24 participants (four state-owned and 20 private banks). The system will provide functions including fund settlement, government bond settlement and collateral management as described below.
Fund Settlement: To support market participants with fund settlement such as cash deposit, withdrawal and fund transfer through their current accounts in the central bank. Foreign currency transactions also provided.
Government Bond Settlement: To help market participants in the government bond transactions with the central bank such as new registration, receipt, delivery, transfer and inquiry as well as management of the terms of government bond issuance, interest payments and redemption.
Collateral Management: To support market participants with collateral management such as deposit and refund of collateral as well as intra-day overdraft. Management of eligible bonds as well as mark-to market, reevaluation of collateral in accordance with changes in the market price and collateral margin also supported.
March 2014 - December 2015
NTT DATA and NTT DATA Myanmar
Significance of this project
Contribution to the government’s strategy to expand IT infrastructure export
The Japanese government lists international expansion of the private business as one of the “third arrow” of Abenomics, the growth strategy including business investment stimulation, and it has announced, in its ministerial meeting on infrastructure export and economic cooperation strategy, a plan to provide Japan’s superior technology, system and know-how to the world as “Japan method”. The development of a core banking system for the Central Bank of Myanmar is part of this effort to globally deploy this “Japan method” and it is expected that IT infrastructure is going to be further exported to other countries. In fact, Vietnam has already decided to adopt Nippon Automated Cargo and Port Consolidated System (NACCS) and the disaster prevention information and communication technologies system (ICT).
Contribution to the comprehensive support on the Myanmar’s financial sector
The Japanese government, in conjunction with its private sector, is providing comprehensive support to Myanmar as it seeks to modernise its financial sector. NTT DATA, driven by this order for the core banking system development for Central Bank of Myanmar, also aims to implement other IT development projects including those for retail payment services to offer credit and debit card settlement.
Our future efforts
We, NTT DATA, will make the most of our years of experience and know-how in Japan on the financial system development to contribute to Myanmar’s financial infrastructure modernisation through the development of its core banking system while, in the government related areas aside from finance where IT system infrastructure needs upgrading, coordinating with the Japanese government to strengthen its efforts to export IT infrastructure.
This project is the first major system development in Myanmar and it is expected to serve as a model for the company’s business expansion strategy in Asia. NTT DATA seeks to actively promote its IT systems to other countries that need IT infrastructure upgrading.
About NTT DATA
NTT DATA is a leading IT services provider and global innovation partner headquartered in Tokyo, with business operations in over 50 countries. Our emphasis is on long-term commitment, combining global reach with local intimacy to provide premier professional services varying from consulting and systems development to outsourcing. For more information, visit www.nttdata.com
About NTT DATA Myanmar
NTT DATA Myanmar was established in November 2012 as an offshore development site of NTT DATA group. The company, which now has more than170 local engineers, takes on various IT system development projects.