"Aside from Attain IT's self-interest in pushing ADIs towards its products, it is questionable whether credit unions actually need another IT response to Basel II," he said.

"Credit unions have been encouraged to develop a risk management framework that suits the diversity and size of their business and not to rely on off-the-shelf, possibly expensive and inappropriate IT solutions.

"Some credit unions may well be investigating IT packages to assist them with their business from a range of suppliers; however, to use the above statement as an indicator of unpreparedness for Basel II is simply nonsense," Lovney said.

Philip Parton, Attain IT managing director, said financial institutions need to have much better information concerning credit risk and operating risk.

"They may not need better technology to comply, but better technology undoubtedly improves management capability which improves competitiveness," he said.