Dashen Bank has upgraded its core banking system which was developed by the US-based company, Oracle, for over 140 million Br total project cost. This is the second time the Bank upgrade its system since 2010.

The new system, which integrates the bank’s 354 branches and dubbed as Flex Cube, will go operational starting May 7, 2018.

Low transaction speed and repeated errors caused customers to complain prompting the upgrade, according to Mulugeta Alebachew, marketing and communications director of the Bank.

“It will enable us to enhance operational excellence as well as technological capabilities,” said Mulugeta. “It also has new modules for Interest-Free Banking (IFB) and other digital channels.”

Finonyx Software Solutions, an Indian based company that is involved in software installation and consultancy services, has deployed the software for the past year. The company was contracted for the project on January 5, 2017.

Dashen’s former core banking system was deployed by an Indian Company, I-flex Solution 13 years ago. The old system was phased out in December 2017. Initially, the Bank had used Flexcube version 5.5 up until December 2010. Since then, it has been using Flecube version 10.5, which will soon be replaced by the version 12.2.

With the advancement of information and internet technology, the National Bank of Ethiopia (NBE) required all commercial bank’s in Ethiopia to deploy a core-banking system. The regulatory bank introduced the system for better transactions, financial records, including deposits and loans, mortgages, internet banking and expansion of branches among others.

Testing of the new core banking system was finalised in three rounds since April 19, 2018, according to the statement from the Bank. “The system was tested with 4,176 wide range of questions bringing about a success rate of 98.6pc,” reads the press release.

During the pilot, 1,600 employees of the Bank received on the job training through 50 staff members of the Bank, drawn from six work units.

Oracle, Misys, Temenos and Finacle are the companies which install and upgrade Ethiopian Banks’ core banking systems.

Wegagen Bank S.C, a year ago, replaced its six-years-old core banking solution with the same Flex Cube system from Oracle with a cost of over 200 million Br. The fierce competitor of Dashen, Awash Bank, also upgraded its system with British Misys over the years. Commercial Bank of Ethiopia (CBE) chose the Swiss IT vendor, Temenos Group to enhance its core banking system. Oracle Flex, the US IT vendor, has had a similar experience with, Zemen, United, and Abay banks.

Dashen owns 837 Point of Sales (PoS) ,posseses 250 operational and 100 more Automated Teller Machines (ATM) which are under deployment by a local IT solution company, Moti Engineering. It has issued a total of a little over half a million debit cards. Its terminals accept international cards including Visa, UnionPay, MasterCard, and American Express (AM-EX).

The 22-years old Bank netted 756.1 million Br in profit last year paying 409 Br return of a share to its shareholders. As of June last year, its asset has reached 34.6 billion Br and 1.92 billion Br in paid-up capital. It also has over 1.7 million account holders.

Henock Efrem, an IT expert and academician for a decade, applauds the ploy of Dashen stating that it will support the digital channels of the Bank.

It will also help Dashen protect its system using ethical hackers and strengthen its security system,” comments Henock.

Source: AddisFortune