Commonwealth Bank Core Banking Modernisation

Sydney, AustraliaThe Commonwealth Bank Group today announced that it is to undertake a comprehensive program to modernize its existing banking legacy systems with a customer centric platform that enhances the way that the Group provides services to its customers and the way it does business.

Core Banking Modernisation is an integral part of the Group’s vision to be Australia’s finest financial services organisation through excelling in customer service and will create a world class customer service platform.

“The modernisation of our core systems is a fundamental strategic plank to the successful future of the Group,” said Mr. Ralph Norris, CEO of the Commonwealth Bank. “It will demonstrate to our customers our determination to be different by providing them with excellent customer service. This will be underpinned by end to end processing systems that will make their banking experience simpler and more efficient. It will also provide customers with increased benefits such as easier access to new and innovative products, greater choice and flexibility and improved turnaround through real time straight through processing.”

The Group has selected SAP® for Banking solutions, based on the leading technology platform, SAP NetWeaver®. It has also appointed Accenture to support the implementation of the program. The proven experience of SAP and Accenture in managing large scale technology integrations along with the Group’s own experience in developing customer centric systems such as CommSee, CommSec, CommBiz, NetBank and its Customer Information Facility (CIF) provides a wealth of experience on customer needs and how to implement innovative change programs.

The program is a natural progression following two years of focus on the Group’s IT capability, including reorganising the function and providing significant ongoing efficiency gains of over $200m per annum. The Group has spent two years on research and development in preparation for the program. Migration will be completed on a stages basis and the Group will be retaining existing CommSee and Internet systems to further mitigate the risk.

The forecast cost is around $580 million over the next four years. In return, the project will deliver a better customer service platform and simplicity in IT systems, infrastructure and business services, as well as provide significant operational benefits and cost savings. The Group’s customers will benefit from having a more agile, flexible and open banking experience.

“The transformation program will see the removal of the current legacy systems that have supported the Group for over 45 years,” said Michael Harte, chief information officer, Commonwealth Bank Group. “While legacy systems are inherent in all large financial institutions, few have had the courage to challenge and execute the necessary changes. Core Banking Modernisation will place us well ahead of our competitors. We have undertaken significant research on the implementation of these core banking programs with other banks and other organisations, both here and around the world. Our existing online and customer data systems means we are uniquely positioned to succeed. The experience we have gained in managing and delivering key IT projects along with our learnings from the research places us in a strong position.”

“SAP is very happy to welcome Commonwealth Bank into the SAP community and to provide a business and technology platform for growth,” said Geraldine McBride, President, SAP Asia Pacific Japan. “As more and more global banks are discovering how enabling technology can modernise their operations and run their business, banks are increasingly turning to SAP’s flexible platform as the platform of choice.”

“Accenture is excited to be working with Commonwealth Bank on its transformation program, which will equip the bank with the capability and flexibility needed to enhance the customer experience, increase efficiency and respond quickly in a competitive market,” said Greg Carroll, head of Accenture’s Australian Financial Services Business.