KUALA LUMPUR: CIMB Group will invest RM1.1 billion over the next five years to implement a regional core banking platform called the 1Platform for Malaysia, Thailand, Indonesia and Singapore.

1Platform is the largest component of the group’s regional operations transformation blueprint, which is expected to cost RM2.1 billion and will be funded internally.

Considered the largest information technology (IT) investment so far, the blueprint also includes a financial reporting and management system, integrated human resource management system, all new front-end sales management system and regional transaction banking.

The platform’s implementation will be on a country-by-country basis starting with Thailand and followed by Malaysia, Indonesia and Singapore. It is scheduled for completion by 2015. The banking group will work with four technology partners — Malaysian-based Silverlake Axis, Accenture, IDS Scheer and IBM — to implement the platform.

CIMB group chief executive Datuk Seri Nazir Razak, who witnessed the signing ceremony between CIMB and its partners yesterday, said the move would enable the bank to shift to a customer-centric approach from its current product-centric approach.

Furthermore, the platform is expected to reduce the group’s time to market by 50% and lower down time considerably.

“We took two years to do the groundwork and find the right partners. Actually, we have no choice but to do this. Our systems especially in Thailand and Malaysia cannot cope with the growing complexities in the long run,” said Nazir, who added that current valuation sees the platform adding RM2 billion in value to the group.

According to Iswaran Suppiah, CIMB Group head of group information and operations, the group typically spends around RM350 million annually on IT and this project represents additional costs.

Iswaran added that smaller markets such as Cambodia and Vietnam would not be on the platform yet. CIMB will open its doors in Cambodia by November and has yet to receive a licence for consumer banking in Vietnam.

On its listing plans, Nazir said CIMB was still on track to list its Thai operations by year-end. As for Indonesia, it is still ironing out the details and “stands ready to apply” for listing approval after that.

This article appeared in The Edge Financial Daily, August 24 2010.