National Australia Bank chief Cameron Clyne says the bank’s technology transformation is on track to deliver productivity gains and lower costs in its Australian business, after the bank posted a first-half cash profit of $2.9 billion.
During the half, the bank deployed the Oracle Credit Risk Engine, enabled a single view of customers, moved into its new data centre, and began the rollout of 130,000 new merchant acquiring terminals.
The bank is four years into a ten year multi-billion dollar technology transformation program that will impact nearly every part of its business.
Clyne told investors today the program was on track to delvier $800 million in annual savings by year five, which will be 2017.
"Our technology transformation is well progressed and we have a refreshed strategy," he said.
The bank spent $288 million on computer equipment and software during the half, up from $255 million in the previous half.
Chief financial officer Mark Joiner flagged upfront implementation costs of the technology transformation program of $50 million.
Clyne today called out the launch of what he called “innovative” data solutions during the half, including NAB's personal financial management tool MoneyTracker, and UBank’s spending comparison tool called PeopleLikeU.
The MoneyTracker tool, which took two years to be deployed, came amid the departure of a growing number of senior executives from NAB’s digital team.
NAB executive general manager of digital and direct, Sam Plowman, was replaced by former growth partnerships GM Antony Cahill last month.
In November last year former digital services GM Chris Smith departed the bank and joined Optus, and more recently NAB head of mobile and emerging technologies Ben Forsyth has exited to take up a role at Telstra.
NAB conducted a major staff restructure in March, one of many that has seen the shift or departure of senior executives this year.
NAB’s technology transformation now falls under the responsibility of former personal banking head Lisa Gray, with former chief information officer Adam Bennett reporting to her. Bennett is managing the ongoing NextGen project which will see NAB shift onto a new core banking platform being developed by Oracle.
NAB officially named Denis McGee CIO last month, a move which it said reflected his management of day-to-day IT operations.