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Banking services

For the first time in 20 years, All-of-Government Banking Services have been tendered. This tender closed on Friday 10 October.

MBIE is pleased with the level of responses received for each of the four subcategories being tendered.

The evaluation phase of the RFP is expected to conclude early next year. We are intending to award contracts by mid-2015.

The RFP has brought a bigger range of banking services to the market than ever before. The new contract will see these services made available to a much broader range of government agencies than the previous contract. This comprehensive approach will help us to identify modern and innovative banking solutions for government agencies.

Our aim is to ensure we deliver a solution that supports better public services for the businesses and New Zealanders that access them.

The subcategories included in the tender are:

  • Sub-category 1: Transactional Banking and Crown Cash Management (proposed contract term of 8 years).
  • Sub-category 2: Foreign exchange transactions (low value) (proposed contract term of up to 8 years).
  • Sub-category 3: Merchant Facilities and Inward Payment Collection Services (prosposed contract term of up to 8 years).
  • Sub-category 4: Card services (including an expense management system) (proposed contract term of up to 8 years).

Sub-category 1 is available to agencies subject to the Public Finance Act 1989 only. The remaining sub-categories are available to all eligible government agencies.

Offshore accounts and associated banking services are out of scope and any existing arrangements will continue.

Our work with banking services suppliers included the opportunity for them to meet – during RFP - with a range of government agencies to:

  • Better understand individual agency banking needs as set out in the RFP;
  • Test their early thinking and potential solutions in response to the RFP; and
  • Help them deliver informed, considered and innovative tender responses that support Better Public Service outcomes, in line with the requirements of the RFP.

A summary of the event has been published on GETS.

To view the Minister of Economic Development's media release on the tender issued on 7 July 2014 please visit www.beehive.govt.nz

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Frequently Asked Questions re AOG Banking

Why are you tendering banking services for the government?

The current core banking services for government have not been tendered for over 20 years, during which time there has been considerable evolution in the banking and financial services sector.

The requirements for government banking have changed over time and the scope of the current core services contract is considered insufficient to meet the current and future banking needs of government.

Re-tendering the core transactional banking services contract gives us the chance to work with the market to ensure the government’s banking services are fit for purpose and provide value for money, while giving us flexibility for future innovations.

How does the All-of-Government (AoG) Banking Tender align to the initiatives under the Government ICT Strategy and Action plan?

We are working closely with the team that are driving the action plan strategy definition and assurance process for the Government Chief Information Officer. Many of the requirements which will be outlined in the All-of-Government Banking tender will help us to achieve outcomes set out in the Government ICT Strategy and Action plan. Specific initiatives and their connection to overall government objectives will be included in the tender once released.

How would an AoG banking solution contribute to Better Public Services (BPS)?

Improving interaction with government is a key focus of the BPS targets, in particular Result Areas 9 & 10. There Result Areas are designed to make sure we are making it easy for business and New Zealanders to do business with government.

To achieve these outcomes we need banking solutions that:

  • Offer new channels and ways to pay;
  • Ensure the stability and timely delivery of our outwards payments; and
  • Look for opportunities to innovate processes within government through partnering.

The government intends taking a more holistic approach to overall banking needs. We need to find ways to share common capabilities across agencies.

What are the other anticipated benefits of an AoG solution for banking services?

There are a range of anticipated benefits to agencies, industry and New Zealanders including to:

  • Deliver a cost effective banking solution to government;
  • Introduce a more strategic approach to partnering with the financial services industry on change and innovation;
  • Ensure government finance teams are receiving the most efficient and high quality banking solutions available so they can deliver quality financial management;
  • Ensure government banking services reflect the Government's ICT strategy; and
  • Give government an opportunity to establish consistent service level agreements and key performance indicators across multiple agencies with our selected providers.

Who can participate in All-of-Government contracts?

Please see our eligibility page.

Will school banking be included in the RFP?

We are not establishing a specific solution for school banking. However, like all AoG contracts, schools are welcome to realise the benefits of participating in sub-categories 2, 3 and 4.

Will just one provider win the contract or will there be multiple contracts (e.g. for the sub categories)?

It is intended that one supplier will be selected for Transactional Banking.

For the other sub-categories panel arrangements are proposed. This means government agencies will have a choice around which provider they work.

Can respondents be successful in more than one sub-category?

Yes it will be possible for respondents to be successful in more than one sub-category.

Will the incumbent provider (Westpac) have a greater advantage over other suppliers?

The process is being managed according to the Government Rules of Sourcing and all suppliers are being treated equally.

Last updated 14 October 2014