FNB customer services arm sold to CS Holdings
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FIRST National Bank (FNB) has sold its information technology customer services division (ITCS) to CS Holdings, and will transfer 280 staff to the technology group.
CS Holdings is paying FNB a nominal amount for the business activities and its assets and liabilities, and will then fold them into its own managed services division. The operations are expected to generate a revenue of more than R60m in the coming year, but FNB has reviewed the activities of the customer services division and decided it was not a core part of its business.
The division would fare better as part of a specialist information technology environment, said FNB's chief information officer Yatin Narsai.
The division's ITCS operations are responsible for a variety of technology-oriented tasks including maintaining the bank's automatic teller machines and point of sales devices, its desktop computers and its networks in SA, Namibia, Botswana and Swaziland.
Another task is to evaluate and roll out new products, equipment and information technology systems throughout the bank.
Cost savings for the operations should be made quickly after its absorption by CS Holdings, as it has offices, staff and infrastructure throughout the country that were very similar to the infrastructure run by CS Holdings.
The two operations could now be integrated to cut the overheads, said Gary Lailvaux, the operational director of CS Holdings.
CS Holdings CEO Annette van der Laan said acquisition would enhance the skills and experience of her company and give it a strong foothold in the lucrative banking services sector.
Jul 08 2003 08:11:45:000AM Lesley Stones Business Day 1st Edition
Tuesday
08 July 2003
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