IBM inks $3 million banking deal

Information Technology major, IBM, has revealed that it has signed a $3 million deal with the Commercial Bank of Ethiopia, the country's largest, to modernise and expand its IT infrastructure, reports ZDNet.

According to Financial Tech, under the terms of the agreement IBM will provide hardware, software and IT services to support the bank in its rapid business growth and its shift from manual financial processes to real-time financial services.

IBM says with the new IT infrastructure, the bank plans to increase its number of accounts by 25%, unveil 200 new ATMs per year and open 500 new branches over the next five years.

The infrastructure will also enable the bank to strengthen and extend its relationship with credit card providers such as Visa and MasterCard and roll out new mobile and internet banking services.

The deal is the latest in a string for IBM, which is trying to build up business on the African continent, reveals ZDNet.

Previously, it inked IT deals with the National Microfinance Bank of Tanzania, three banks in Nigeria, First National Bank in Namibia and government finance agencies in Senegal and Cameroon.