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Banking services

For the first time in 20 years the government is tendering its core banking services.

Re-tendering offers a wider opportunity than ever because we are bringing more services to the market and making them available to a broader range of government agencies. We are taking this comprehensive approach so we can identify the best solutions for government agencies.

We want to ensure wide supplier market participation in the tender so we can identify the most fit-for-purpose outcome across each sub-category. The tender will mean government has access to modern innovative banking solutions.

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

The sub-categories included in the tender are:

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

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.

To view the RFP please logon to www.gets.govt.nz. The RFP closes at 3pm on Friday 10 October 2014.

To view the Minister of Economic Development's media release please visit www.beehive.govt.nz

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Inland Revenue's involvement in Banking Services RFP

In preparation for the AoG banking services tender we have undertaken a significant amount of work on government agencies' possible transition requirements. As part of this work the complexity around transitioning the Crown revenue related banking services for Inland Revenue (IR) was identified. IR is undergoing a business transformation and any transition needs to take this into account.

It has been agreed that IR will participate in all four banking services sub-categories including Sub-category 1 with the exception of the IR Crown Accounts (and associated inwards and outwards payments including over-the- counter transactions). IR will participate in the Tender for Sub-category 1 in relation to its departmental banking transactions. It is proposed that IR will stay with Westpac for the 8 year duration of the Transactional Banking Services contract in relation to crown banking and over the counter payments.

For further information please email banking.coe@mbie.govt.nz

 

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, over 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.

Why hasn’t government Transactional Banking and Crown Cash Management been tendered for 25 years?

Taking government’s banking business to market requires a great deal of preparation and planning. Our current transaction volumes are high and our need for stability and certainty of processing is critical. The government has renewed contracts with its suppliers over the intervening period but had not planned for a comprehensive tender before now.

What will happen after the RFP closes?

When the RFP closes there will be clarifications sought of respondents and evaluation activity. 

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 30 September 2014