SOURCE: IBM

May 22, 2006 13:00 ET

JACCS Shares Sophisticated System for Consumer Finance Industry

Shared System Extends System Investment Efficiency Benefits

TOKYO -- (MARKET WIRE) -- May 22, 2006 -- Leading Japanese consumer credit company, Japan Consumer Credit Service Co., Ltd. (JACCS) and IBM Japan have built a shared system platform for JACCS' industry-leading consumer finance and credit card mission critical system, the backbone of its 24-hour consumer finance service. The system, known as "JANET (JACCS Advanced information Network System Established Toward twenty first century)," can help any organization save on IT investment while leveraging JANET's robust infrastructure.

JANET's infrastructure and IT operations are outsourced to IBM and operate out of IBM Japan's Service Delivery Center (SDC), which builds on IBM's experience in the timely delivery of quality IT services for business application development, maintenance, testing and solution management, starting today in a deal worth approximately $500 million over 10 years. JACCS expects an annual maintenance and operation cost savings of 20 to 30 per cent. This agreement is one of the world's largest SDC-based outsourcing deals for IBM.

"The huge cost savings is a crucial element of this deal. Also key is the ability to offer our customers more choices to meet their financial needs," said Tomoyasu Aoki, Senior Executive Officer, JACCS.

"IBM Japan's Service Delivery Center delivers the scale and expertise necessary to operate and continuously improve business processes and technology solutions to create sustainable business value for JACCS as well as for other clients in Japan," said Masatsugu Shimono, Vice President, Integrated Technology Delivery, IBM Japan.

JACCS is the only loan company in Japan that has realized 24-hour-a-day, every day online operation, which is essential for the credit card industry. Since its inception, JANET has achieved five years of non-stop operations. This is resounding proof of the system's reliability and flexibility in handling highly complex processes including unique settlement and exception handling at contracted outlets. JANET's financial products and services applications including shopping credit, credit-card loan and mortgage are developed into modules to give flexibility and scalability to the system to meet future business needs.

IBM Japan's SDC manages the entire IT asset of JACCS on JANET and it also manages JANET as the shared platform for JACCS. Other companies, especially those from the consumer finance industry, can also benefit from this deal. Organizations that want to use JANET can purchase either shared use rights or stand-alone use rights. Shared use rights allow organizations to use the JANET-based shared system made available at the SDC. With stand-alone use rights, organizations will purchase JANET's software to incorporate into their respective systems. By using the JANET system, companies can significantly reduce system development cost as well as risks including unstable operations and lack of skilled IT talent. The cost savings can then translate into investments in other new, strategic areas to expand their business.

This deal marks another milestone in the ongoing relationship between JACCS and IBM. In May 1997, JACCS chose IBM Japan as its systems integrator to develop a mission critical system for credit cards called JANET. In January 2000, JACCS signed an outsourcing agreement with IBM Japan prior to the launch of JANET, and since May 2001, IBM Japan has provided services for information system development and JACCS' entire systems operation management.

About JACCS

Founded in Hakodate, Hokkaido, Japan in 1954 as an installment sales company using coupon tickets, JACCS has grown its business in the area of shopping credit, credit cards and financing by placing utmost emphasis on trust and adhering to the principle of putting the customer first. JACCS is currently embarking an unprecedented transformation for the next 50 years, after the successful completion of the previous medium-term business plan "INNOVATION 50" which made an overarching revisions of all operations and organizations. With new medium-term business plan "Growing 1," JACCS is now taking a new step, from reform to growth, as JACCS strives to achieve the top position in the shopping credit business as well as in the consumer credit industry.

About IBM

For more information about IBM, go to: www.ibm.com

Contact Information