Suncorp Group will complete the overhaul of its core technology systems by mid-2016 to trim operational costs and enable the bank to quickly develop and launch modern banking products and services.
The project dubbed as "Ignite" will renovate its entire core banking system with a total investment of $270m.
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Following completion of the project as expected by 30 June 2016, the bank will be able to reduce its cost-to-income (CTI) ratio by 4%.The CTI is a measure by which the market judges the internal efficiency of banks, and reducing it typically means an increase in profits.
Suncorp Bank chief executive John Nesbitt was quoted by ZDNet as saying, "Through Project Ignite we’re going to change all the bank’s core systems and we’re going to change the way we work across the bank for customers."
"It’s much more than just a technology project; it’s a complete transformation of the bank. In two years we’ll have a new bank," Nesbitt told the publication.
With the completion of Ignite, the lender will migrate its various core bank systems, including accounts and payments, on to a new platform based on Oracle technology.
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By GlobalDataAdditionally, Suncorp will be able downsize its product set by half, decommission 12 legacy systems from a current pool of 17, and re-engineer 580 processes to remove duplication.
The project is halfway to being finished, which was initially started in 2012.
