OmaSp terminated its Cognizant core-banking renewal — and banked a €22M compensation

Oma Savings Bank Plc (OmaSp), the largest savings bank in Finland by assets, was one of three Finnish financial institutions that Cognizant selected in January 2019 as a strategic partner for building and operating a shared core banking platform — the renewal meant to power their digital transformation plans. The project commenced in 2019.

In June 2021 the companies mutually agreed to cancel the project and terminate the contract. As part of the agreement, Cognizant would pay OmaSp a significant financial compensation, with a positive impact of approximately €22 million on the lender's profit before taxes for the 2021 financial year, per its stock exchange filing.

"Negotiations with Cognizant have taken place in good spirits and we concluded that the termination of the cooperation agreement for the core banking project is the best solution for OmaSp," said CEO Pasi Sydänlammi. "The cancellation of the project will have no impact on our customers' banking services and we will continue to develop our digital services in a determined manner." Samlink would continue as an essential IT services provider.

A significant financial compensation from Cognizant worth about €22 million of positive impact on OmaSp's 2021 profit before taxes.

A mutual termination converted a two-year core-banking project into a quantified gain — about €22 million on 2021 profit before taxes.

The bank separated the platform from the relationship: Samlink stayed on as its essential IT services provider while the Cognizant project ended.

Management framed the exit as continuity — no customer impact, with digital services development continuing "in a determined manner".

Killing a stalled transformation early can be cheaper than finishing it — if the exit is negotiated into a compensated mutual termination.

The cancellation and termination were announced in June 2021 through a stock exchange filing. OmaSp said it would keep developing its digital services, with Samlink continuing as an essential IT provider; the material does not record what replaced the Cognizant platform plan.