Tokyo: February 8, 2000 -- Fujitsu Limited today announced it will
establish a new company that will utilize cutting-edge IT technologies
and solutions to provide comprehensive systems outsourcing for Japan's
regional banks. The Toho Bank, Ltd., a regional bank based in
northeast Japan, will adopt PROBANK, Fujitsu's next-generation
deposit and loan system, and also outsource the maintenance and
operation of its core systems to the new company.
In the increasingly competitive environment accompanying the expansion
of the "Big Bang" financial deregulation, regional banks in Japan are
under growing pressure to make aggressive IT-related investments in
such strategic areas as customer relationship management and
administrative management systems. Another important task they face is
to reduce core back office systems costs -- especially those related to
deposit and loan activity -- through such means as outsourcing.
Responding to these needs, the new company to be established by Fujitsu
will offer comprehensive outsourcing services based initially on
Strategic BANK, the banking business strategic IT model that Fujitsu
unveiled on February 3. The establishment of the new company represents
an unprecedented business model bringing together Fujitsu's IT
technologies and accumulated expertise in systems development and
outsourcing for regional banks with the business experience and knowhow
of the banks themselves. Fujitsu will provide most of the funding for
the new company, while additional investment will be solicited from
various regional banks, such as Toho Bank.
Along with being a top-tier solutions provider to Japan's regional
banks, Fujitsu has leveraged its systems centers at Tatebayashi and
Akashi to expand its outsourcing business into all industrial
sectors. Altogether, Fujitsu is currently providing outsourcing
services to about 160 companies. Based on this track record,
Fujitsu is positioning the new company as a core subsidiary for
expanding its regional banking solutions business.
Toho Bank, as part of its aggressive information technology
implementation strategy, looked into optimizing its core systems
and concluded that the concepts behind Fujitsu's Strategic BANK
best matched its strategic direction. For the bank's next-
generation deposit and loan system -- which process such core
banking operations as deposits, finance and foreign exchange --
Toho Bank decided to adopt PROBANK, a core element of Fujitsu's
Strategic BANK model.
Toho Bank will not only participate in the founding of the new
outsourcing company but will also outsource its maintenance and
operations systems under PROBANK. As a result, the bank expects
to significantly reduce maintenance and operation systems costs
as well as system personnel requirements. Altogether, the bank
expects a reduction of about 30% from current computer related
expenses. This will enable the bank to more thoroughly
concentrate management resources on key business operations, IT
investment and other strategic areas, thereby strengthening
competitiveness and profitability, and enabling it to more
accurately and quickly respond to the needs of customers.
Outline of New Company
| Name: | to be decided |
| Capital: | about 100 million yen
In addition to Fujitsu's investment, there are plans to
solicit equity investment (5% or less per bank) from
participating regional banks |
| Headquarters: | to be decided (expected to be in the Tokyo region) |
| Chief officer: | to be decided (will be designated by Fujitsu) |
| Establishment: | within first half of fiscal year 2000 |
| Operations: | Outsourcing of regional bank core systems, distributed systems, networks, and branch office systems (multi-vendor systems supported). Provision of help desk support, etc. |
Key characteristics:
- Will offer comprehensive outsourcing solutions for regional
banks utilizing the latest solutions know-how
- Will provide total outsourcing services based on the latest
solutions know-how for everything from back office systems -- in
particular, deposit and loan systems -- to middle and front-end
functions, optimized to permit each customer bank to give full
scope to its own strategies and unique characteristics.
- Will enable cost reduction through outsourcing, while
maintaining strategic integrity and originality of each customer
- By adopting PROBANK (Progressive Banking Solution), Fujitsu's
next-generation back office system featuring modularized
applications and 24-hours-a-day, 365-days-a-year availability,
participating banks can reduce maintenance costs without
compromising autonomous control over their operations.
- Each bank will have an independent computer system to
guarantee operational security and autonomy.
- Management by Fujitsu will ensure high-level operations
- In addition to the benefits of Fujitsu's advanced technology
and financial expertise, links with strong domestic and
overseas partners will make for speedy introduction of new
services and functions.
- National service coverage
- The infrastructure for the outsourcing service will utilize
Fujitsu's Tatebayashi and Akashi systems centers as well as
its nationwide high-speed network.
- In addition, by taking advantage of the operations centers of
the first client, Toho Bank, as well as those of future clients,
the new company will further expand its services nationwide.
* All company/product names mentioned may be trademarks or registered trademarks of their respective holders and are used for identification purpose only.
About Fujitsu Limited
Fujitsu Limited (TSE: 6702) is a leading provider of comprehensive
information technology and network solutions for the global
marketplace. Comprising over 500 group companies and affiliates
worldwide -- including ICL, Amdahl and DMR Consulting Group -- the
Fujitsu Group had consolidated revenues of 5.24 trillion yen
($43.3 billion) in the fiscal year ended March 31, 1999. With world-
class hardware and software technology in computers,
telecommunications and microelectronics, and a corps of 55,000
systems and services experts around the world, Fujitsu is uniquely
positioned to harness the power of the network to help its customers
succeed. Altogether, the Fujitsu Group has 188,000 employees and
operations in over 100 countries.
Homepage: http://www.fujitsu.com/
| Press Contacts: |
|---|
Isao Hirano, Bob Pomeroy, Scott Ikeda
Fujitsu Limited, Public Relations
Tel: +81-3-3215-5236 (Tokyo)
Fax: +81-3-3216-9365
E-mail: pr_mailbox@hq.fujitsu.co.jp
|