EAP Holdings signs MoU with OpenArc

For the first time in the history of finance software industry in Sri Lanka, a local software company signed a MoU with an upcoming Commercial Bank to supply and implement a 100% local software solution for Core Banking & Finance operations.

This MoU was signed between EAP Holdings Ltd, the leading finance company in Sri Lanka which has been engaged in the finance business for the last 40 years and OpenArc Systems Management (Pvt.) Ltd., a leading Banking & Finance software solutions provider which has been in business for over the last 21 years catering to software requirements of a large number of commercial banks and finance companies in Sri Lanka. EAP Holdings decided to enter into this partnership after having enjoyed a close business relationship with OpenArc over many years.

OpenArc has already supplied software solutions to EAP group companies such as Swarnamahal Financial Services and ETI Finance successfully.

According to the present work plan of ETI, the group will amalgamate these two financial institutions and seek a commercial bank license to migrate all the systems and operations to a completely new banking environment.

Through this MOU, OpenArc will not only supply financial software solutions to the group but also will advise the other EAP group companies in the implementation of systems.

CEO, OpenArc Systems Management, Daya Hettiarachchi said Sri Lanka has so much of expertise in the banking & finance industry and unmatched talents and skills in software development which someone must use for the development of a 100% local core banking software solution within Sri Lanka and that is what OpenArc is striving for.

He added that local software industry doesn't have enough entrepreneurship to explore software product development opportunities available in the global market place. Many software companies, instead of committing their efforts to long-term development goals, chose the easy path to import foreign software solutions and sell them in the local market for quick profits. However, these projects carry a high risk of failure when local vendors do not possess sufficient knowledge to support and provide maintenance services on those products. Therefore it is unfortunate that almost all local banks depend on foreign software companies to get the support.

As a result, every local bank spends millions of dollars every year to maintain those foreign software solutions running in their bank. We, at OpenArc are committed to stop this foreign exchange expenditure, by introducing a truly local core banking solution for which we request the fullest support from the industry leaders. Daya Hettiarachchi explained his company commitment to this task which he expressed as a national endeavour.

OpenArc, with its experience in the software industry over two decades, primarily as a successful product based company, has captured the market leadership. ETI and Swarnamahal Finance are using OpenArc InBank software application to support its all financial applications for last so many years as two separate business units. The MoU will bring those companies together and work towards 'SkyBank' the new core banking application software for the EAP Holdings. SkyBank is a browser based software solution which caters all the finance requirement of any financial institution such as commercial banks, merchant banks, finance companies etc. Unlike traditional core banking applications SkyBank facilitates with latest technologies like Tablet PCs, POS terminals, Smart phones etc. and it has its built in mobile payments system and many other tools such as SMS engines, Stake Holder portals etc.

Kariyawasm, CEO of ETI group said the ETI group is one of the biggest finance companies in Sri Lanka. After a detailed study of different vendor proposals we decided to go with OpenArc systems particularly because of their industry exposure and close relationship that was maintained over a long period of time in the past, he added.

With this MOU both companies agreed to begin the implementation of SkyBank by end of financial year 2013/2014. OpenArc and ETI will work closely to identify the requirements and introduce best financial practices to the entire group with required international standards such as IFRS.