Banco Santiago and IBM Sign a 10-Year, $44 Million IT Services Agreement

The largest agreement to be signed in Chile between a technology provider and a financial institution

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SANTIAGO, Chile - 12 Jul 2000:

Banco Santiago and IBM have signed a $44 million contract for information technology services. The contract is the largest of its kind ever signed in Chile between a technology provider and a financial institution, and the first to be forged between IBM and a bank belonging to the BSCH group in South America.
Under the agreement, IBM will provide the IT services and hardware infrastructure required to run Banco Santiago's core transactional systems over the next ten years.
The agreement is part of a major technology transformation program currently being implemented by Banco Santiago. The aim of the plan is to replace many of Banco Santiago's IT systems with a three-tier architecture including new core systems, changes in the bank's distribution channels, and a special focus on enabling electronic transactions through the Internet. IBM will provide the platform and services on which the bank's primary systems will operate.
"This agreement is part of a major technology transformation presently undertaken by Banco Santiago," said Fernando Canas, general manager of Banco Santiago. "Modernization of a large portion of the bank's systems and the re-introduction of IBM mainframes will enable us to offer our customers the best financial services. IBM is without a doubt an excellent IT partner, for this reason, we chose IBM's leading-edge technology to comply with the highest standards of quality and efficiency. "
Specifically, IBM will replace the technology platforms that support Banco Santiago's main data processing center and its online operational systems with leading edge technology including IBM's S/390 servers, CICS for Data Communications, and the DB2 relational database.
"We are extremely pleased with the trust that Banco Santiago, an innovative e-business institution, has placed in IBM," said Angel Garcia, country manager, IBM Chile. "IBM's IT partnership with Banco Santiago with an outsourcing agreement of this magnitude will allow the bank to focus on its core business, improving the services provided to its customers."
IBM will leverage its worldwide expertise in the provision of IT services to help the bank build the infrastructure it needs to offer its customers state-of-the-art technology services. The outsourcing environment IBM will provide to Banco Santiago will be deployed in two data centers interconnected with fiber, to deliver the highest levels of availability. To protect the bank from the effects of a disaster, the two data centers will be able to constantly share information in real-time.
Banco Santiago is the largest private bank in Chile, with a market share of 15.5 percent. It has a credit rating of AAA and has been recognized as the bank with the best and most innovative banking Web site in Chile.
IBM is the largest IT company in the world. IBM Global Services is the world's largest information technology services provider, with 1999 revenues of approximately $32 billion. Services is the fastest growing part of IBM, with more than 138,000 professionals serving customers in 160 countries. For more information visit http://www.ibm.com/services .

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