Namibia bank localizes processing with IBM mainframes

The First National Bank of Namibia has kicked off its US$15 million project to localize core processes by signing a $5 million deal with IBM to supply the country's first mainframe banking systems.

Under the agreement, IBM will supply two IBM System z10 Business Class mainframes and supporting software, and localize systems and operations.

FNB Namibia bought the mainframe systems because of security considerations, dynamism in the high-volume processing environment and a directive from the regulatory authority to localize core banking systems.

"Mainframe technology has been legendary since the 1960s and has proven to be built on highly secure platforms," said Steven van Rhyn, head of IT at FNB Namibia.

While other forms of computing are used extensively in business in various capacities, the mainframe occupies a coveted place in today's dynamic business environment. Mainframe computers play a central role in many large corporations and their security features have been developed over time, van Rhyn said.

Although IBM has worked hard to make the mainframe Linux- and Java-friendly, there are questions whether Africa has the talent pool to service the systems.

"Skills transfer as well as training forms an integral part of the deal with IBM; Namibians will be up-skilled over a period of time," added van Rhyn.

Apart from training arrangements with suppliers, Africa has also benefited from the credit crunch because skilled African professionals struggling abroad are opting to come back home, while the influx of Indian IT professionals has also benefited the region.

"Some of Africa's well-trained professionals are opting to come back home because of the credit crunch, which is very important for IT development in the region," said Mark Walker, director of the Vertical Industry Practice, IDC Middle East and Africa.

IBM is also working with several universities in sub-Saharan Africa to give students skills in mainframe computing.

The System z project is a response to a directive from the central Bank of Namibia to localize all information technology systems, documents and data relating to customer transactions, the bank's business affairs, property, assets and liabilities.

Launched in 2008, IBM says the mainframe systems help organizations cut energy costs by up to 90 percent and simplify data center requirements.

"The mainframe solution will help FNB to accommodate growth, ensure cost effectiveness, business continuity and improve services for customers," said Oliver Fortuin, general manager of IBM Sub-Saharan Africa.