S2 Systems Inc., a leading worldwide supplier of reliable software for electronic funds transfer and electronic commerce, was chosen by Bank Papan of Indonesia to launch that country’s first Internet banking capability, which is based on the S2 software application, OpeN/2:Internet Banking.
All Bank Papan customers at branches throughout Indonesia can now sign up for online banking via the Internet. “For the first time, customers from Bali to Borneo can check account balances, apply for credit cards and loans, and transfer money between accounts, all via the Internet,” said Carol Schmitt, vice president of marketing for S2 Systems. She added that Bank Papan customers have also had remote access to banking via a 24-hour, CTI-enabled call center and a national automated teller machine (ATM) network since early 1997, “so they can bank online by phone, from work or home, or wherever an ATM or Internet connection is found.”
A Financial Times survey shows that Internet-based home banking is one of the fastest-growing trends in financial services worldwide. Banks like Bank Papan recognize that sizable savings are available, since an Internet-based Web site is far cheaper than building physical branches. Booz Allen Hamilton estimates that transactions conducted at a bank branch can cost $1.07, while those at an ATM are $.27. But an Internet transaction costs only one cent.
Bank Papan, a medium-sized bank in Indonesia, is built on, and renowned for, its mortgage loan capabilities; it started emphasizing full service retail banking capabilities in 1996, progressively achieving remote service capabilities throughout 1997. Bank Papan chose S2 Systems because of the open architecture and object-oriented technology of the OpeN/2 software, Schmitt said. The bank was familiar with other products from S2, as well as the company’s expertise in the retail banking industry since the early 1980s. Bank Papan will use the new technology to compete with larger banks in the region, offering new online services as well as traditional services at lower prices. The flexibility of OpeN/2 will allow them to quickly develop new services in response to changing market needs.
One of the key driving forces for Bank Papan, both globally and locally, is competition. For example, through online services via the Internet, the bank’s sales force can visit customers at their homes or offices if they wish to apply for mortgage loans and credit card accounts. Bank Papan has built a mortgage loan origination system using Lotus Domino(R), which may be ported to their web site. “The Internet equalizes the playing field for innovative banks like Bank Papan, who can now nimbly compete against traditional, larger competitors or even new multi-national competitors,” Schmitt said.
For Bank Papan, OpeN/2 runs on the Hewlett-Packard(TM) HP-UX(TM) operating system and a relational database from Informix. The OpeN/2 software is also available on Microsoft(R) Windows NT(R) and other databases, such as Microsoft SQL server and SyBase. OpeN/2 is also scaleable and distributed — if the bank’s current computer system runs out of capacity, additional hardware can be installed without major changes to the software.
Unlike most online transaction software, S2’s OpeN/2 avoids the bottleneck of a central program that can delay the entire system when a single transaction fails and must be corrected and restarted. Rather than centralizing distributed transaction processing, OpeN/2 starts and tracks each process at its point of origin. Problems with a single transaction do not slow or stop other resources in the system.
For over a decade, S2 Systems has provided ATM/POS software that supports banks with 40 to more than 2,000 ATMs and service bureaus just starting out to those processing more than 4 million transactions daily. S2 Systems’ software drives local, regional or nationwide ATM or POS networks in nearly 60 countries. The company’s software supports such varied electronic commerce (EC) requirements as electronic funds transfer, online banking applications or loan payment services, file transfer, EC messaging and EC gateways between legacy systems via Internet or Web-based technologies.
S2 Systems is a leading supplier of business EC software and professional services. S2 Systems focuses on EC gateway, electronic funds transfer, healthcare administration automation and customer-specific marketing software for retail, financial services, healthcare and evolving industries. Headquartered in Dallas, with offices in Atlanta, Hong Kong, London, Maarssen and Sydney, S2 Systems’ products have been licensed by more than 600 companies in 60 countries. S2 Systems is a wholly owned subsidiary of Stratus Computer, Inc. (NYSE: SRA).
To contact S2 Systems, write 15301 Dallas Parkway, Suite 600, Dallas, TX 75248; Phone: 972-458-3800; Fax: 972-458-3870; or via the World Wide Web at .
To contact Bank Papan, write Wisma GKBI 26th Floor, J1. Jend. Sudirman No. 28, Jakarta, 10210, Indonesia; Phone: +6221 572 1999; Fax: +6221 574 1350; or via the World Wide Web at .Details