Bendigo and Adelaide Bank aim for single-core banking system by 2024 – Finance – Strategy – Software
Bendigo and Adelaide Bank will consolidate several core banking systems and move 50% of their applications to the cloud over the next three years.
Australia’s fifth-largest bank outlined its digital transformation goals for fiscal 2024 at a market briefing on Friday.
As part of the plan, the bank intends to reduce the number of core banking systems used by brands like Delphi, Alliance and Rural Bank from eight to one by 2024.
Around 95% of the group’s customers have already migrated to a single central retail finance banking system, although no breakdown has been provided.
The bank will also reduce its brand presence to three during the period, with Delphi Bank and Alliance Bank already migrating to other Bendigo products and systems.
After starting its cloud journey at the end of last year, the plan will also see the bank migrate 50% of its applications to Amazon Web Services and Google Cloud by 2024.
About 10% of “target state technology applications” have already moved to the cloud, while more than 80% of new and upgrades have now been born in the cloud.
The bank also plans to reduce its number of apps to 325, from 650 in 2019, having already removed 13% of apps in the past two years.
In its digitization approach, the bank expects wait times for approval of home loans to drop to one day by 2024, from 22 days in 2019.
During Friday’s briefing, CTO Ryan Brosnahan said the bank “recently deployed API-driven automation capability.”
He said this had reduced “the time it takes to file the income and expense information that feeds the credit reporting process from 77 minutes to 7 minutes per request.”
The bank has also launched a digital home loan called BENExpress, which operates the tic: toc mortgage lender platform.
Neobank Up will also take advantage of aspects of the tic: toc platform to publish its home loan proposal next year.
Bendigo and Adelaide Bank have also developed a “frictionless authentication capability” for smartphone banking services that will be rolled out to customers in the first half of 2022.
Brosnahan said the bank has “taken a good start in building the future over the past two years by significantly advancing our roadmap of simplification, modernization and digital transformation.”
“It allowed us both to grow alongside the transformation, to walk and to chew gum,” he said.
“We have a lot to look forward to as we continue to implement this plan over the next three years, which will enable us to deliver on our vision to be Australia’s bank of choice for customers, individuals, partners, communities and shareholders. “
The bank hopes to reach 90% of active online banking customers by 2024, up from 53.9% recorded in 2019.