Cognizant client Oma Savings Bank(OmaSp), the largest savings bank in Finland based on total assets, announced that they are ending a core banking contract with Cognizant. OmaSp said that both the companies have mutually agreed to terminate the project and put an end to the contract, which requested a renewal of the core banking platform commenced in the year 2019.
The company, in a stock exchange filing, noted that under this agreement. Cognizant will be paying OmaSp a significant amount as financial compensation, which is expected to positively impact on the lender’s profit before taxes for the 2021 financial year.
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Pasi Sydänlammi, the OmaSp CEO, said that negotiations with Cognizant have always taken place in good spirits. They further noted that ending the termination of the cooperation agreement for the core banking project was the best solution for OmaSp. In their statement, Pasi said that the termination of the project or contract would affect the customer’s banking services and continue to focus on developing digital services in a determined manner.
OmaSp was one of the three financial institutions in Finland that Cognizant had in January 2019 selected to be a strategic and essential partner for building and operating a shared core banking platform. The shared core banking contract was signed to enable further and drive more digital transformation plans.
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OmaSp is a growing Finnish bank focused primarily on retail banking operations at present has over 300 professionals. These professionals offer nationwide services through the company’s 32 branch offices and digital service channels to nearly 140,00 private and corporate customers.
The Finnish bank is also known for its mortgage banking operations. It provides its clients an expansive range of banking services using its balance sheet and acts as an intermediary for its partners’ products. The intermediate products offered by OmaSp include credit, investment as well as loan insurance products.
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