Danske to be supported by An Post following competitive tendering process

Minister of State with responsibility for Public Procurement, Patrick O’Donovan T.D., has today (Tuesday) announced the conclusion of a Framework Agreement with Danske Bank, supported by An Post, for the provision of Government Banking Services.  The appointment follows a competitive tendering process undertaken on behalf of Government by the Office of Government Procurement (OGP).

The Government’s objective in conducting the public procurement competition was to identify the most economically advantageous arrangement for the provision of an efficient, streamlined, cost-effective banking structure for Government Departments and Offices. The solution had to provide the maximum degree of integration with the new Financial Management Shared Service, which commences roll out this year.

Service requirements cover the following three key components;

  1. A new pooled banking structure to support the funding and operation of Government Departments and Offices
  2. Ring-fenced bank account(s) facilities for a number of separate funds including, but not limited to, the Social Insurance Fund, Local Government Fund and National Training Fund. In addition, a number of other accounts may also be opened but will not be part of the Pay Master General pooling arrangement
  3. A banking service to provide transactional services to facilitate tax collection for the Office of the Revenue Commissioners

Following an intensive Competitive Dialogue procedure, Danske Bank was awarded the contract. The tendered service solution combines strong system functionality and an excellent approach to customer service. Danske will be supported by An Post in delivering services through the nationwide network of Post Offices. The new service will provide a comprehensive, integrated and modern banking services solution to the State.  Danske is a specialised corporate and institutional financial services provider based in Dublin and operating in Ireland since 2005.

The Framework Agreement represents the first time these services have been subject to a competitive tendering process.  Effective public procurement is a key element of the Government’s reform programme, ensuring that the Public Service operates in a co-ordinated and efficient way.  Through the development of shared Framework Agreements such as the new Government Banking Services contract, the Public Service speaks with “one voice” to the market eliminating duplication and taking advantage of the scale of public procurement to best effect.

Commenting on the completion of the Framework Agreement, Minister of State Patrick O’Donovan said: “I welcome the appointment of Danske Bank, supported by An Post, for the provision of Government banking services.  This agreement is the result of a detailed and thorough Competitive Dialogue process carried out by colleagues in the OGP to deliver the best solution for Government Departments and the most advantageous arrangement on behalf of the Irish people.”

Terry Browne, Country Manager Ireland at Danske Bank, added:   “This is a landmark contract for Danske Bank and demonstrates our Group’s expertise in digital banking and delivering innovative solutions to large institutions including State Bodies. Utilising our technology and supported by An Post’s network of Post Offices, we look forward to working with the respective Government offices to deliver a customer focused, efficient and streamlined banking services model.”

ENDs

Notes for Editors:

About the OGP

The Office of Government Procurement (OGP) commenced operations in 2014 and, together with four key sectors (Health, Local Government, Education and Defence), has responsibility for sourcing goods and services on behalf of the public service. The OGP also has responsibility for procurement policy and procedures, sourcing systems and data analytics.

About Danske Bank Ireland

Danske Bank Group is a leading European financial services provider headquartered in Copenhagen.  The Group serves personal and business customers alongside large corporate and institutional clients.

In Ireland, Danske Bank is a provider of wholesale banking services to Corporate and Institutional clients.  Clients include indigenous large corporates, Nordic multinationals operating in Ireland, bank and non-banking financial institutions and state bodies.