OpenArc to partner local banks to go abroad
OpenArc Systems Management (Pvt) Ltd, a leading Sri Lanka software company established in 1991, is gearing to partner with a local bank in its journey to venture abroad, officials said.
“We primarily offer software solutions to banking and finance, security trading and enterprise resource planning (ERP) and with core banking solutions we plan to join with a local bank to venture abroad,” Daya Hettiarachchi, Chairman/CEO OpenArc told the Business Times.
He said this kind of partnership will be cost effective for the banks. The core functions considered in this paper are deposits, lending, transactions, and advisory. “By effectively and efficiently meeting the needs of customers (both individual and businesses) in each of these areas and by thoroughly managing the interdependencies between these core functions, banks create real value for the economies in which they operate,” Mr. Hettiarachchi explained.
OpenArc recently made a presentation to all the Chief Information Officers of commercial banks on ‘SkySwitch’, which is the all purpose common platform for mobile payments and core banking. “This Payment Switching platform is linked to our ‘SkyBank’ core banking solution. We requested them to let us do testing of the solutions we have developed, at the banks. It was at no cost, no commitment but just for us to work together with their teams to connect and test multiple institutions to this common platform we have designed and developed,” Mr. Hettiarachchi said.
This platform offers ‘SkyPay’ which is accounts for mobile payments and funds transfers, SkyPOS- for Branchless Banking/Agents/Merchants payment solution, ‘SkyTeller- ATM Connectivity solution for Finance Companies, SkyWallet – Mobile money solution for unbanked customers, SkyLoad – Prepaid card loading solution, Phone money loading solution for telcos, SkyRemit – Inward remittance distribution to rural, unbanked customers and ‘SkyPal’ which is the local PayPal solution.
OpenArc has modern, scalable, flexible and cost-effective core banking, Mr. Hettiarachchi said, adding that local software firms like his needs support from authorities such as the Central Bank and Lanka -Clear in their endeavour to take these software solutions abroad.
The company wants to enhance its international marketing network and launch international partnerships with prospective business partners in selected countries such as Dubai, USA, Canada, Japan, South Africa, Kenya, Denmark, Norway, Australia Bangladesh, Vietnam, Cambodia, Myanmar and Maldives.
OpenArc has already got partnerships in some of the above mentioned countries through Ascensor Partners, which has been in the international marketing of some software products that the company has developed for the hospitality industry.
Mr. Hettiarachchi said currently they are in discussion with investment banks with regard to going public and it has recently completed its private placement of shares and also diluted 19 per cent shares to Japanese investors to raise US$2.5 million. “With this achievement the company was further consolidated with sufficient capital for future development and we will be going for an Initial Public Offering (IPO) later this year,” he added.
He said that the Japanese investors formed the Japanese arm of OpenArc under OpenArc Group, Japan and they already started their software outsourcing business in Japan through this new venture. Mr. Hettiarachchi said that OpenArc signed an MOU with Edirisinghe Trust and Investment to integrate two InBank installations that they are presently running at Swarnamahal and ETI Financial Services within group companies, and implement SkyBank core banking and finance software solution in the future at ETI Bank that they intend launching in the future.