Bendigo Bank was able to harness Wirecard’s product-specific knowledge and have it take care of compliance issues on their behalf. The bank was able to stay release-current, did not have to bring on board expensiv, additional expertise, and reaped benefits that could not be gained from in-house or ‘generalist’ service providers.
In a second project in mid-2003, Wirecard helped Bendigo with its Visa card back office and settlement system. Historically, these had been processed on their behalf by CashCard. “Wirecard’s capabilities assisted Bendigo Bank in bringing Visa in house,” says Devlin. “This gave us self-reliance, and reduced the huge expense from the other vendor. Wirecard played a key role our broader strategy to become an acquirer of transactions in our own right. Today, we’re a fully-fledged merchant acquirer.”
Using Wirecard Card System’s merchant subsystem, in late 2003 Wirecard also brought Bendigo’s extensive and growing merchant settlement system in house. Until then, it had been processed on their behalf by St. George Bank. The bank needed a cost-effective merchant management system with a high level of control to provide a premier service to its customers.
Bendigo Bank undertook formal competitor analysis of outsourced services and in-house applications, followed by requests for proposals. “We looked at two outsourced and two insourced merchant systems,” Devlin says, “and Wirecard won hands down.”
The merchant management system Wirecard offered Bendigo met most of the bank’s needs. “The pricing was right, which was very important. It was a good solution for smaller organizations like this. Most of them are mainframe systems with big support and maintenance overheads. Wirecard had the track record and, importantly, was locally available. Having a team we knew we could get to in our own time zone was important to us.”
When it came to deciding between an outsourced service and an in-house application, Devlin had reservations about the shortlisted outsourcing vendors’ accountability, and whether they could provide the kind of service the bank was depending on. Whereas the shortlisted vendors were assuming the traditional vendor role, Bendigo was looking for more of an alliance partnership.
“We got it down to two fairly good outsourced solutions that we’d whittled down from six or seven responses, but there were a number of issues. Both had very good features, but they were way too expensive. And there were some concerns about support and how that would work, given our very hands-on, personalized approach―we weren’t comfortable that we were going to get the best results.”
Devlin had no such concerns about the Wirecard Card System. “Wirecard’s merchant module was up and running at a New Zealand site, ASB Bank, and I was very familiar with ASB’s operations. I knew they ran a good shop and that Wirecard Card System was the engine driving it. We found it was a big advantage that Wirecard had already deployed the system with another bank, and we were able to draw on their expertise and experience. The result is that we now have a very profitable business.”