By Gareth Vaughan
The Government's banking business, which the Ministry of Business, Innovation and Employment (MBIE) is seeking expressions of interest in, is likely to be spread around a range of banks and other entities such as payments and foreign currency service providers, with bids from consortia also allowed.
As promised MBIE yesterday issued requests for proposals for All-of Government banking services. The primary contract currently governing the Crown’s banking arrangements is the 2004 Domestic Transaction Banking Services Master Agreement with Westpac, with Westpac having been the Government's banker for 25 years. However, the new All-of Government tender goes much broader than the scope of Westpac's contract and is designed to drag government banking into the digital age, establishing "common, shared, innovative and integrated banking service delivery models for government."
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4 Comments
Kiwibank will not be the governments transactional banker. Kiwibank have already said so themselves. They do not have the infrastructure and capability to support over 100 million regular transactions just from Public Service organisations. They will no doubt throw their hats into the ring for payments, cards and forex and good luck to them to win those categories. This tender is all about ensure the govt keeps with the digital age so hopefully the winners of this tender offer the best solution not just for now but to allow for change. It also needs to be remembered that this does have the potential to be re-tendered in 8 years time so I hope the bank will make inroads in the set up of government accounts to help reduce the risk to allow an easy transition, if a transition occurs, to whoever the new supplier may be. This will rule out agencies not being included in the next round, namely IRD.
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