Oct. 24--The Government Savings Bank has high hopes that its new 1.1-billion-baht core banking system will help improve efficiency and customer service for the state bank, says Yongyuth Tariyo, a GSB deputy director-general.

The system, which recently was transferred online, connects all 600-plus branches of the GSB across the country as well as other customer channels, including the bank's 200 shopping centre kiosks.

Mr Yongyuth said the rollout of the system had been smooth and without any major obstacles, and that branch operations have already seen an improvement in processing times thanks to the system.

The GSB took 18 months to install and test the system, completing the work six months ahead of schedule. The IBM platform is a more advanced version of a system already in use by Krung Thai Bank, the country's second-largest commercial bank by assets.

Mr Yongyuth said the bank's credit analysis operations had become more efficient thanks to the system. Data mining of the bank's customer databases also allows the bank to more effectively target products and services for different client segments.

He said the bank would develop its shopping centre channels into full branches in the future in acknowledgement of the changes in customer behaviour and popularity of modern trade outlets and shopping malls for urban residents.

Mr Yongyuth said the banking system included multiple firewalls and security systems to prevent unauthorised access to sensitive client and bank data. The system also works with branch staff to track and reconcile daily inflows and outflows.

Another state bank, the Government Housing Bank, was hit by a massive scandal earlier this year when a branch employee was discovered to have siphoned 500 million baht from the bank over a two-year period by exploiting flaws in the bank's banking system and operating procedures.

An investigation found the GHB's system lacked a comprehensive firewall blocking access by unauthorised parties to the bank's general ledger, a loophole that allowed the branch employee to authorise fund transfers to his own personal account.

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