Kiwibank’sbanking system valued at $27 million after $90 million impairment
After taking a $90 million hit from its core banking system CoreMed, KiwiBank is still valuing its “work in progress” computer software at $27 million.
Kiwibank never officially disclosed the exact expected cost for its core banking system upgrade, however Kiwibank chief executive officer Paul Brock previously stated it would cost “more than $100 million.”
Kiwibank acting chairman Kevin Malloy said during the September results briefing, that the board had decided that CoreMed was “not the system that is going to deliver us digital transformation.”
The latest GDS said the board was in the process of reviewing the existing core banking system project. “While this review has not been completed, based on the work done to date, the board considers it highly unlikely that the current delivery path of the core banking system project will meet key transformational objectives of the Bank and therefore the current project will not proceed without significant changes in the delivery path.”
