Suncorp has hit a speed bump in its Oracle core banking overhaul, with configuration and migration issues setting the bank back in its delivery timeline.
The multi-year 'Project Ignite' transformation was declared almost complete by the bank last August with the delivery of customer, collateral, collections, and personal loan origination on the Oracle Flexcube core banking technology.
Suncorp took a staggered approach to releases on the new platform, tackling the least complex migrations first.
At the time of its full-year financial results last August the bank had yet to shift deposits and transaction banking over, and had scheduled the migration for the latter half of 2016.
However, at its half-year FY17 results today Suncorp revealed configuration of the platform and product migration has "taken longer than expected", causing a setback in the project's timeline.
"The bank is working closely with the vendor Oracle to ensure a phased and controlled delivery approach," it said.
The bank told iTnews additional enhancements to the lending and deposits functionality were needed to deliver a "scalable solution that will meet customer and business needs".
"Suncorp is the first to deploy the system in Australia and we are working with Oracle on delivering a product that meets all our prerequisites including regulatory requirements, the capacity to scale, and the ability to process numerous transactions efficiently," a spokesperson said.
The bank intends to deliver the additional functionality by the end of the year, and complete its decommissioning and other "finalisation activities" by June 2018.
The core banking project involves the rationalisation of the bank’s product set by half, the decommissioning of 12 legacy systems, and re-engineering of 580 processes.
Decommissioning was scheduled to be complete this financial year.
Suncorp has already switched off legacy collections, personal lending origination, and collateral systems, and in the past six months migrated personal loans and flicked home loan origination live on the new platform.
It said it had also delivered "functionality" for a range of deposit products on the Oracle system.
The total cost of Project Ignite at its full financial year 2016 was $330 million. Suncorp did not provide an update at its half-year results today.
Elsewhere, in its wealth business Suncorp said it was on track to complete its "super simplification" project in the second half of its current financial year.
The project will see 42 legacy superannuation and pension products rationalised down to nine, alongside the introduction of a new administration system.
Since the Bravura Sonata admin platform went live in the back half of last year, Suncorp has rationalised 21 products and migrated the first bundle of customers - 78,000 users - and $3.9 billion in assets across to the new system, the bank said.
"This project will materially simplify the wealth business including enhanced data security, systems, product and pricing, enabling better product and service offerings for customers," it said.