In another sign Myanmar’s financial services industry is moving forward, French digital services firm Atos has made its market debut through a partnership with Myanmar Millennium Group (MMG), with the two businesses signing a memorandum of understanding on October 17.
The link-up, which will bring Atos’ banking service offering to Myanmar, connects the foreign IT giant with local customers and helps MMG compete at an international level.
“Atos’ banking-as-a-service is the ‘bank in the cloud’ that will revolutionise the banking sector here and drive real performance breakthroughs,” said MMG chief U Min Zeyar Hlaing in a statement.
The banking-as-a-service model is based on the software-as-a-service model, which allows companies to pay for technology or software by subscription, rather than as a package. This means companies, or in this case banks, are able to pick and choose the technology they need.
U Min Zeyar Hlaing added that the service will help businesses to reduce costs and improve competitiveness.
Local banks will be able to update their legacy IT platforms and participate in market and product innovations on a level playing field with international competitors, said Atos’ managing director for Malaysia and Indonesia, Magnus Alvarsson, in a statement.
Meanwhile, Chief Minister of Yangon Region U Myint Swe described banking-as-a-service as a fully integrated, standardised banking platform for banks.
At a press conference in Yangon for the signing, he said the service is secure, cost-efficient and saves time.
Though Atos “spent quite some time” looking at Myanmar, it was only in March that the company was able to do business here, Mr Alvarsson said.
U Min Zeyar Hlaing called the October 17 signing a “historic moment between Myanmar and France”, adding that though the two countries had previously had a relationship in the oil and gas sector and others, their pair-up was significant for the IT field.
“This is one of the first IT partnerships between a European company and a Myanmar company,” he said.
U Min Zeyar Hlaing said growth had surged for private banks in Myanmar, spurring the need to boost core IT systems to address requirements and “go international”.
“After 15 years in the market, we are taking one step up by restructuring the company and partnering with one of the biggest IT solutions providers in the world – Atos,” U Min Zeyar Hlaing said.
Mr Alvarsson said at a press conference that Myanmar’s financial sector showed great promise.
“The issuance of licences in 2014 to foreign banks has seen a shift in government policy … indicating some loosening of restrictions,” he said.
“While this has opened the playing field for financial institutions locally and internationally, this decision has also created a demand for advanced technological solutions that will propel the business of finance in Myanmar and support its positioning in the Asia Pacific region.”
The partnership is a win-win for both companies, according to Mr Alvarsson.
“MMG has the network here and the local knowledge and they understand the culture,” he said. “We will help MMG raise the bar and move into new areas.”
“For MMG to work with someone like us, not only do they get the portfolio and the knowhow, but we can also help them to train their people,” he continued.
Though the event emphasised the debut of banking-as-a-service in Myanmar, Mr Alvarsson said the partnership would encompass more of Atos’ portfolio of services in the future.
Source: Myanmar Times