Introduction

To enable FESALOS to meet the competitive and modern demands of the core functions of all affiliated Savings and Loan societies, particularly its Bureau ‘Client User’ Societies; the Federation needed to provide a more effective and robust Management Information System (MIS). FESALOS is dependent on its entire MIS supporting the affiliated societies and needed to encourage and enable S&L Societies to re-engineer their current business processes. This process involved the replacement of the 16 years old FACTS MIS that will eventually become defunct because of diminishing support from the IT vendor, Ultradata of Australia.

In late 2008 FESALOS commissioned its ‘technology change project’ and implemented a comprehensive review and evaluation of potential Retail Banking MIS using best practice evaluation methods. Fesalos sought help from the World Council of Credit Unions (WOCCU) on the best practice evaluation method. Through this due diligence process Fesalos was able to acquire Ultracs3 Retail Banking System from Ultra data in December 2009. Also, in preparation for the new MIS, Fesalos carried out a comprehensive refurbishment of its MIS Bureau which involved the respective upgrades of the Local and Wide area Networks (LAN & WAN) consistent with the Fesalos’ MIS Road Map. Fesalos also sought help in consulting with TransAction Solution, a Sydney based MIS Bureau Service provider specialized in supporting credit unions with Information technology services.

Fesalos in collaboration with its technology partner, Ultradata commenced implementation and conversion process of the current Facts ‘client user’ societies during the 1st quarter of 2010.

Regulator Involvement

Fesalos is indebted to the BPNG as the regulator of the Savings & Loan Societies for its assistance and involvement in the critical process of evaluation which resulted in the selection of Ultracs3 as the best fit banking system solution for the S&L Industry. It is essential to mention that the BPNG conducted a prudential review of Fesalos in August, 2010 and was satisfied with the due diligence process employed by Fesalos in the evaluation and selection of the Ultracs3 retail banking system.

The Roll out Implementation of the New IT System

The partnership with Ultra data as our key technology partner has enabled Fesalos and its User societies to achieve the objectives of the Information System (IS) Technology change project. The Roll out Implementation of the Ultracs3 system will enable user Societies to remain at the forefront of technology in the financial market. The Ultracs3 Retail Banking MIS can provide an array of choices and options to their customers, and provides a competitive edge in an ever changing world of technology, while assisting with the impacts of regulatory change. The Fesalos MIS Bureau ‘Roll Out’ ‘Implementation’ of the Ultracs3 Retail banking system exercise covered the following societies which are now effectively using the system: Air Niugini S&L, Central Bank Officers S&L, PTP S&L, Finance & Private Sector S&L, Nambawan S&L, PNG Power S&L, Alekano S&L and Niu Ailan S&L, National Farmers S&L.

Fesalos is now collaborating with Ultradata to connect three additional sites which includes: Lae City Council S&L, Sepik S&L and Manus S&L to Ultracs3 in 2012.

Benefits of using the Ultracs3 System

The Ultracs3 Solution is built on a service-oriented architecture and is integrated across all business processes and channels. The system can be tailored for each individual society taking market needs into consideration to provide the following key elements for Savings & Loan societies in PNG:

CUSTOMER INFORMATION

LOAN ADMINISTRATION

MICRO FINANCING

LOAN PORTFOLIO MANAGEMENT

SAVING MOBILISATION & ADMINISTRATION

INTERGRATED GENERAL LEDGER

BRANCH SYSTEMS with TELLER SERVICES

FINANCIAL and REGULATORY REPORTING

MANAGEMENT REPORTING

TELLER SERVICES

Ultracs3 Retail Banking System can also provide a fully integrated, secure and convenient solution for other customer access and services such as:

  • SMS query
  • Internet Banking for Online Savings
  • Web Lending
  • Mobile- phone Banking
  • ATM
  • Branch and branchless banking
  • Call Centre
  • Agency
  • ‘GO LIVE’ with Ultracs3 Retail Banking MIS

Fesalos is extremely pleased that nine (9) of its client User Societies have ‘GONE LIVE’ with Ultracs3 Retail Banking system during the ‘Roll Out’ Implementation program that started in 2010. This essentially means that these user societies can now effectively conduct their society’s financial transaction processes using the Ultracs3 Banking system in contrast to the previous FACT or any other core systems these societies have been using for the last decade. It is also fair to mention that although it will now be decommissioned, Fact System has served the S&L movement well.

From our Bureau perspective; the Go Live of one user society adds to a modest list of societies that have successfully gone live with Ultracs3; however, from an S&L Industry perspective this is a huge milestone achievement for Fesalos and its member societies in the regulated Banking & Finance Sector. This milestone achievement is attributed to the cooperative and supportive effort of the Board, Management and staff of each of the nine client user societies.

FESALOS remains committed to assisting S&L Societies with technology innovation and training to better serve the vast majority of its members.