CIMB to invest $351.61mln in 1Platform

Silverlake Axis, Accenture, IDS Scheer and IBM handle large scale technology integrations under 1Platform.

CIMB Group on Monday announced the implementation of 1Platform, a regional core banking platform across Malaysia, Indonesia, Singapore and Thailand, and signed agreements with the four main technology partners namely Silverlake Axis, Accenture, IDS Scheer and IBM, according to CIMB report.

With an all-in cost of RM1.1 billion ($351.61 million) over the next five years, 1Platform is the largest component of CIMB Group’s regional operations transformation blueprint which is expected to cost RM 2.1 billion ($670.82 million). The other four main components of the blueprint are its financial reporting and management system, integrated human resource (HR) management system,  all-new front-end sales management system, and regional transaction banking system. 

“Our significant investment in our operations transformation, and within it, 1Platform, reflects our commitment towards establishing the internal systems and processes for CIMB Group to operate as one entity across the region. 1Platform is the foundation for a regional IT and operations framework which unifies CIMB Group and  enables us to compete as a truly regional bank..With the formal engagement of our partners in this major undertaking,  we are ready for the implementation phase,” said Dato’ Sri  Nazir Razak, Group Chief Executive, CIMB Group, who witnessed the signing ceremony.

The signing ceremony formalised the appointment of Silverlake Axis, a Malaysian-grown global IT solutions provider, to provide the core banking system.  IDS Scheer will supply the business process management solutions; IBM will provide the IT infrastructure while Accenture will serve as the primary consultant for programme management.  Present at the signing ceremony were Goh Peng Ooi, Chairman, Silverlake Axis; Thean Nam Yew, ASEAN Financial Services Managing Director, Accenture Solutions;  Lars  Bengtsson, ASEAN Managing Director, IDS Scheer; and  Ramanathan Sathiamutty, Managing Director, IBM Malaysia.

Due to the scale and magnitude of the project, the implementation of 1Platform will be completed on a country-by-country basis, starting in Thailand and followed by Malaysia, Indonesia and lastly Singapore. The whole Group is expected to be on 1Platform by 2015.  

Iswaraan Suppiah, Head of Group  Information and Operations, CIMB Group said,  “We are very excited about this transformation; the implementation of 1Platform will revolutionise our systems and processes, and will provide  the  impetus  for  the Group’s regional agenda in the years to come.”

“The proven experience of Silverlake Axis, Accenture, IDS Scheer and IBM in handling large scale technology integrations, combined with CIMB Group’s two years of project research and development and its own experience in driving regional initiatives gives us the confidence that we will successfully implement 1Platform,” he added.

Elaborating further on the Group’s overall plans, Nazir said: “Building a single operations and  IT  framework  across the region  will enable us to  generate substantially more synergies from our regional business model, aside from realising significant operational efficiencies from  the standardisation of skill-sets across the Group. It will facilitate product development and proliferation across the region, enabling our people to more effectively bundle and cross-sell products.” 

“This is a major exercise for CIMB Group and we do not underestimate the enormity and complexity of the challenge. We will  also dedicate the human resources necessary to ensure its success.  In fact, over 300 staff are currently working full-time on our regional transformation agenda, and we expect this number to double in the implementation phases ahead.” 

"The full impact of  our investment in 1Platform and other transformation initiatives will only be felt progressively over the next  four to five years. However, we want to ensure that we are  building a banking institution  that will be successful  long after our own careers in the organisation,” he added.