News

New switch to help Indonesia's regional banks compete with major FIs

Infrastructure on the Way4 processing platform will provide connections between all provincial regional development banks, existing local and domestic switches, mobile operators and billing aggregators.

August 22, 2014

Asbanda, an association of regional development banks in Indonesia, and OpenWay, a provider of software solutions, have partnered on a switching project that will connect 26 regional development banks of 34 Indonesian provinces.

Asbanda and OpenWay will implement a comprehensive flexible BPDNet online switch solution that consolidates Asbanda member banks on a single processing platform, according to a news release from OpenWay.

The planned infrastructure on Way4 includes connections between all provincial regional development banks, existing local and domestic switches, mobile operators, and billing aggregators in Indonesia. Volume transaction projection is 20,000,000 transactions for 2015.

The BPDNet Online switch will allow participating banks to offer a variety of interbank and payment services to customers with better pricing and enhanced service, the release said.

"BPDNet Online is a big milestone for all Asbanda member banks," Asbanda head Erzon MM said. "It will optimize the payment infrastructure between provincial banks that allows them to compete with leading commercial banks in Indonesia, and deliver the best payment services to customers."

The OpenWay portfolio includes the national payment switch for the Central Bank of Bangladesh connecting 17 banks; the universal electronic card switch for about 15 of the largest Russian banks serving more than 90 million active cards; and the Finnet payment gateway in Indonesia, connecting more than 60 banks and 20 billers.