Only 10 banks finish implementing CORE banking while June deadline approaches
As part of the implementation of centralised, online, real-time, electronic (CORE) banking, National Bank of Ethiopia (NBE) launched its National Payment System (NPS) nationwide, on Friday, May 27, 2011, when Berhan Bank became the first bank to interface with the NPS.
The old manual system would be replaced by the NPS, a modern payment system, to enable the banking sector to use modern automated transfers that save time and resources.
“Only Berhan international Bank has finalised its street through processing (STP) system to interface with the NPS,” said Husien Selman, network administrator at NBE.
All banks are required to implement their CORE banking systems and integrate their electronic interbank money transactions with the NPS by the end of June 2011.
The CORE banking solution systems of Dashen, Wegagen, Awash International (AIB), Nib International (NIB), Lion International (LIB), Abay, Berhan, Zemen Bank, Commercial Bank of Ethiopia (CBE), and United have already been finalised.
Oromia International (OIB), Cooperative Bank of Oromia (CBO), of Abyssinia (BoA), Bunna, Addis International (AIB), Construction & Business (CBB), and Development Bank of Ethiopia (DBE), are implementing their CORE banking systems.
“The remaining banks are on their way to join BIB in the near future,” Zemedeneh Negatu, managing partner of EY, told Fortune.
The basic infrastructure for interbank large money transfers and interfacing with the retail payment system would be provided by the NPS, Teklewold Atnafu, governor of the central bank, told those attending the launching ceremony at the Hilton Addis on Friday.
“The project has created a platform for the enhanced technical capacity and overall operational efficiency of the financial sector,” he said.
While the proclamation on the NPS has been slated to Parliament, it has still not been ratified, a necessary step to regulate the security of the system.
Discussions were held about the proclamation by the budget and finance standing committee with bankers, the foreign ministry, and the Information Network & Security Agency (INSA) on May 12.