Bendigo and Adelaide Bank will consolidate multiple 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 year 2024 during a market briefing on Friday.
Under the plan, the bank intends to reduce the number of core banking systems used by brands such as Delphi, Alliance and Rural Bank from eight to one by 2024.
Around 95% of the group’s customers have already been migrated to a single core retail funding banking system, although no breakdown was provided.
The bank will also reduce its brand presence to three over the period, with Delphi Bank and Alliance Bank already migrating to other Bendigo products and systems.
After beginning its cloud journey late 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 been moved to the cloud, while more than 80% of new and upgraded applications are now born in the cloud.
The bank also plans to reduce its number of applications to 325 from 650 in 2019, having already reduced applications by 13% over the past two years.
In its digitization approach, the bank expects home loan approval times to drop to one day by 2024, from 22 days in 2019.
During Friday’s briefing, Chief Transformation Officer Ryan Brosnahan said the bank “recently deployed an API-driven automation capability.”
He said it reduced “the time it takes to file income and expense information that feeds into the credit reporting process from 77 minutes to seven minutes per application.”
The bank has also launched a digital home loan called BEN Express, which uses the tic:toc mortgage platform.
Neobank Up will also use aspects of the tic:toc platform to post a home loan proposal next year.
Bendigo and Adelaide Bank have also developed a “frictionless authentication capability” for smartphone banking which will be rolled out to customers in the first half of 2022.
Brosnahan said the bank has “got off to a great start in building the future over the past two years by significantly advancing our simplification, modernization and digital transformation roadmap.”
“It allowed us to both grow alongside the transformation, walk and chew gum,” he said.
“We have a lot to look forward to as we continue to execute on this plan over the next three years, which will see us deliver on our vision to be the Australian bank of choice for customers, people, partners, communities and shareholders.”
The bank hopes to reach 90% of active online banking customers by 2024, up from 53.9% recorded in 2019.