Banking and financial services contract

Contract details

Lead agency: Department of Government Services

Conditions of use: Mandatory

Contract reference number: SS-08-2020

Arrangement type: Panel

Start date: 1 October 2021

End date: 30 September 2026

Mandated Agencies

This contract applies to all Agencies subject to the Standing Directions, as well as goods and services mandated Agencies.

To see a list of mandated Agencies read:

Agencies subject to the Standing Directions 2018 under the Financial Management Act 1994.

Agencies mandated to comply with goods and services supply policies.

Other entities

Other Government entities are encouraged to access this contract. These entities include:

local councils
government owned entities
government supported organisations

To determine eligibility, contact the Banking services team.

Key benefits

Key benefits of the new contract are:

competitive rates for banking services
increased support for the State's Central Banking System
maximum coverage of functional and geographic requirements
continued investment in product development
access to economic spend data and insights
greater opportunity to influence social procurement outcomes through a broader supplier base
increased access to value-add industry products and services

What’s covered

Agencies can choose to use one bank or a combination of panel banks for different services.

Services and associated pricing provided by each of the banks are not identical. Compare services and pricing offered.

The banking and financial services state purchase contract comprises 4 modules:

Module 1 – Core transactional banking

transactional banking arrangements, bank account structures (including pooling arrangements), and ancilliary services such as account maintenance
a branch network to receive cash and cheques and offer encashment facilities
cheque issuance and collection/negotiation
BPay
electronic payment services including payroll and outsourced payments
electronic banking system capabilities, including an interface to receivables and general ledger systems

Module 2 – Merchant services / acquiring

Inbound credit card and debit card receipts including through:

electronic funds transfer at point of sale
interactive voice response
operator assisted payments
gateway services

Module 3 – Purchasing / Procurement cards

procurement cards
virtual cards
prepaid, rechargeable and one-off cards
interfaces to expense management systems

Module 4 - Omni Payment Channels

collection services including over-the-counter bill payments
other collection/payment services both in Australian Dollars and foreign currencies

What’s not covered

Local community banks

The panel arrangement provides multiple options to cover regional Agencies’ banking service’s needs, including easy to use online banking platforms and the option to bank with the local post office.

Agencies who have raised funds from their local community can hold these funds only with a bank of their choice, in line with the portfolio department's financial management policies. This includes:

donations
bequests
foundations

All other funds must be held with a panel bank supplier under this contract.

Central Banking System

Victorian Government banking contractual arrangements, contract performance and access to the Banking and financial services state purchase contract are managed by the Department of Government Services.

The Department of Treasury and Finance is responsible for the management of the operational and technical aspects of the arrangement, including the Central Banking System, which centralises surplus funds liquidity held in bank accounts.

The Central Banking System enables the Department of Treasury and Finance to centralise surplus funds held by departments and agencies in bank accounts across the Victorian Government. Centralising funds in the Central Banking System improves the efficiency of the State’s cashflow management task and reduces higher cost long-term borrowings.

Reducing long-term borrowings delivers net interest savings to the budget, provides support to the State’s credit rating, and the capacity to fund government services.

Funds held by department and agencies in Central Banking System are held in the bank accounts provided by the state purchase contract panel banks. The terms, conditions and operational arrangements of accounts are governed by the state purchase contract and funds held in bank accounts can continue to be immediately accessed.