IBM takes digital banking on a shared core banking system

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Armonk, USA: As the world witnesses a rise of “sharing economy” model and its growing acceptance, tech services giant IBM is pursuing its “shared mission” on the digital banking front.

The company’s Japanese subsidiary, IBM Japan has developed a shared core banking system for a consortium of banks called TSUBASA. Since the system was specifically built and developed for this banking group, it has been named as the TSUBASA core banking system.

TSUBASA alliance is a group of Japan’s six regional banks that includes Chiba, Daishi, Chugoku, Iyo, Toho and North Pacific Bank. This group was formed to enhance financial system, investigate and research advanced IT technologies including fintech.

This group’s four banking members namely Chiba, Daishi, Chugoku and North Pacific Bank are already leveraging and functioning on this IBM-built TSUBASA core banking system.

And now, Toho Bank, one of the group member has decided to run its functions and operations on the TSUBASA core banking system.

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This unique core banking system shares business processing features such as deposits, currencies and loans, various channels such as ATM and internet banking and data connecting features with sub-systems.

“We are excited to collaborate with IBM Japan and the other Japanese banks as we take part in the TSUBASA core banking system,” said Minoru Sato, Senior Managing Director, Toho Bank.

“We anticipate that this consortium will help us make our IT environment more efficient while allowing us to develop advanced products and to speed up service provision,” added Sato.

The TSUBASA shared core banking system has helped the regional banks improve their overall efficiency by working together and sharing system resources and development initiatives.

This can free precious resources, enabling banks to focus on investing in additional digital transformation initiatives.

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“In the fast-changing banking ecosystem, the call of the hour is to deliver tailor-made solutions that don’t just offer customer convenience but is also a sustainable exercise in the long-term,” said Kerry Purcell, General Manager -Global Technology Services, IBM Japan.

“We are very happy to have Toho Bank join the TSUBASA core banking system on our shared mission to promote initiatives in digital transformation in the banking industry,” added Purcell.

IBM’s efforts to build a shared core banking system for a group of banks in Japan, certainly is beyond any pilots or experiments.

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Probably, such shared core banking systems or enterprise grade large IT applications can easily help to bring down overall cost of technology applications, infrastructure and maintenance and in return businesses can improve their efficiencies by many folds.

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