Databank Systems Limited

Databank Systems Limited was the name of a not-for-profit "off balance sheet" company set up by a consortium of competing banks in New Zealand, to operate on what is nowadays termed a "Shared Services Agency" basis, to provide computing resources (development and operational) for the consortium members. The company was set up in 1967, and in 12 years grew to be the largest non-Government data processing organisation in the Southern Hemisphere, servicing more than 1,200 banking offices.

The purpose of Databank was defined within a set of contractual obligations in the 1969 Processing Agreement. The Agreement was between the consortium members, and was essentially about the services and service levels to be provided by Databank, and the constraints that would exist to ensure that lead bank ownership of any new application/system, and bank competitiveness, were maintained.

The formation of Databank came at a time when computer systems were a scarce and expensive commodity in New Zealand, with the import of computers being restricted by the then government's prevailing highly regulatory economic policy. Computers could only be imported under licence. The executive management of the BNZ (Bank of New Zealand) wanted to obtain a computer and establish a computerised system to enable the automation of the processing of its banking transactions and customer accounting. Computerisation was deemed as the only way to proceed if the increasing cheque transaction volumes were to be accommodated in timely fashion. The other, smaller banks were approaching the point where they would face a similar situation. However, the NBNZ (National Bank of New Zealand) was the only one that happened to have a computer import licence.

Thus, the initial teaming-up was between the BNZ and NBNZ in 1966, and they set up Databank in 1967. The three other trading banks subsequently joined the consortium in 1968. Decimal currency was introduced in New Zealand on 10 July 1967.

Databank was incorporated in 1967 in Wellington, New Zealand, to deliver services to the then statutorily mandated trading banks of New Zealand. The founding CEO was one Gordon Hogg of the BNZ also known as the "bright brain" of BNZ. Ian Archibald was hired from the Bank of Scotland and worked closely with Gordon Hogg. Gordon worked well with Ian who was much more cautious. Gordon stayed at the company until he was obliged by the Databank Board to take early retirement in 1988.

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