Technical Issues in Bank Merger

December 9, 2019 | DWAIPAYAN REGMI

The merger is not an easy game anyway – and there are huge hurdles that have to be faced. IT Department of both banks must be working from the very 19th Mangsir itself to extract data from the database and manage a constant flow accordingly around. Apart from other aspects of the merger, technical sides are equally challenging. This will impact both customers and staff around there.

They had impressively worked about awareness of non-operating days thereby – as the notification was set from Esewa, publications to emails. The campaign was really impressive with success on a large scale too. The new brand of the climbing peak was featured on the front page of the national daily as well. Email campaign with CEO’s message made a remarkable impact among account holders too.

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The following are the major technical issues that bank mergers bring around.

1. Software Integration

Even when Dena Bank and Vijay Bank sat down with Bank of Baroda, the integration process was time-consuming. When the Core Banking System (CBS) is different – integration is likely to be a troublesome and time-consuming process. The big merger that took place in Nepal had to merge the system as well. Face cube with Finacle – and hence there would certainly lie a challenge among them.

2. Software Training

Those staff who had been habituated to Face cube use must find it troublesome in setting their hand for the newly integrated software. There are likely chances of mistakes or loopholes among them. Training a large bunch of mass all at once would be challenging.

3. Software Hurdles

What they did to Janata Bank’s customer was they transferred the entire balance to Global IME’s new integrated system. That would lead to confusion when the account holders will have to see their long record statement. This might not be possible for online users, or mobile banking users as well. So, when the customers reach the help desk – the staff will have to use two systems too – tedious indeed.

4. Third-Party Links

Although Connect IPS’ account got updated right after the merger spaces – it seems that there are other places where the account holders need to upgrade on their own. Be that Free Account of Esewa ID, or other places. Did the big merger fail to remind them about that, because the issue of their linked accounts within the third party probably would not reside within their control?

5. Integrated Accounts

There has been information flow that all of Janata’s Account will be automatically converted into Global IME’s Account. Their ATM cards, cheques would be applicable in extended branches – that is impressive. Meanwhile, the same user ID for Internet Banking worked and Janata’s account holder just had to install Global IME’s mobile app. These aspects created an assurance among account holders for sure, but it seems that account holders still are confused in spaces like Mero Share. Should they upgrade their bank details? What about their C-ASBA feature?


With a big bang, the merger’s story got enough space in media. Technically, they probably will work out to collaborate systems, and work together in the IT Team. There will probably be a new level of training for staff about the use of software and introduction to their culture. However, the confusion of customers should gain spaces too. Which branch will be operating and which will shut down – is the information properly circulated? That matters too. In the end, the account holders must be satisfied with the services around them. Those account holders of Janata Bank must have realized that their interest rate has been lowered following the interest rate of Global IME bank – How Fair? Were they even informed about it? So, while being the biggest bank, apart from staff satisfaction the customers must get satisfied too. Did they lag?

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