Myanmar Banks Eye Compliance with Microsoft Software Deal
In a significant move towards bringing Myanmar’s banking industry in line with international standards, Kanbawza Group has announced a deal with Microsoft to upgrade its software systems and services across all its companies.
A Step Towards Compliance
The agreement, signed last month, aims to make KBZ Bank’s operations compliant with international banking standards and regulations. According to Stephane Lamoureux, Director of Group IT at KBZ, compliance is crucial aspect of the project, which involves replacing pirated software with legitimate and certified licensing.
Compliance Requirements
- Compliance with PCIDSS (Payment Card Industry Data Security Standard) and ISO 27001
- Replacing pirated software with legal and certified licensing
- Getting rid of unlicensed software and replacing it with legitimate solutions
The upgrade will take around a year and involve the installation of Microsoft’s SQL Server 2012, Windows Server 2012, and System Center 2012 systems across KBZ Bank’s 350 branches and sub-branches nationwide.
Benefits of the Deal
- Enables branches to conduct video conferences via Skype
- Strengthens internal security by controlling access to bank data
- Limits access to certain employees and managers based on their seniority
- Allows for e-banking, a crucial step forward in Myanmar’s digital banking landscape
Future Plans
- KBZ Bank aims to attract more customers through internet banking
- Target of 20% mobile banking penetration among customer base
- Comparison with Singapore’s 45% mobile banking penetration rate highlights the potential for growth
The deal comes ahead of expected stricter laws and regulations against pirated software in Myanmar, similar to those already in place in neighboring countries such as Thailand and Singapore. As Myanmar’s business relations with the United States and Europe continue to warm up, pressure is likely to mount on the government to provide more protection for intellectual property rights.
“We’re talking about compliance with international standards,” said Lamoureux. “Part of this requires the organization to have only legal and certified licensing, so we need to get rid of unlicensed software and replace it with the real McCoy.”
The legitimate software will also enable KBZ Bank to move into e-banking, a crucial step forward in a country where limited access to physical bank branches and a growing mobile phone penetration rate have created an opportunity for digital banking.
“It’s to show that we are following international standards and that we can work with global banks,” said Lamoureux. “The development will also be a boon for Microsoft, which will gain access to the largest bank in Myanmar.”