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THE Commonwealth Bank will spend $580 million over four years with German software giant SAP to upgrade its core banking systems.
Technology consulting house Accenture has been appointed by the bank to drive the so-called Core Banking Modernisation project.
Commonwealth Bank chief executive officer Ralph Norris said modernisation of its core systems was “a fundamental strategic plank” in building the company into the future.
“This will be underpinned by end-to-end processing systems that will make their banking experience simpler and more efficient,” Mr Norris said.
“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.”
“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,” Mr Norris said.
The Group selected the SAP for Banking Solutions based on SAP’s leading technology platform, NetWeaver. It said the experience of SAP and Accenture in managing large scale technology integrations fit well with the Bank’s own experience in developing customer centric systems such as CommSee, CommSec, CommBiz and NetBank.
“The transformation programme will see the removal of the current legacy systems that have supported the Group for over 45 years,” said the Commwealth’s chief information officer Michael Harte.
“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,” Mr Harte said.
The Commonwealth said it had spent two years on research and development in preparation for the Modernisation programme. Migration will be completed on a staged basis and the Group will be retaining existing CommSee and internet systems to further mitigate the risk.
“We have undertaken significant research on the implementation of these core banking programmes with other banks and other organisations, both here and around the world,” Mr Harte said.
“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,” he added.
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