NAB reports profits as IT transformation continues

NAB reports profits as IT transformation continues

The bank has built and deployed the Oracle Credit Risk Engine, single customer view capability, a new data centre and a private cloud

National Australia Bank reported progress on its IT transformation in half-year results reported today.

The bank reported $2.5 billion in net profits, an increase of 22.8 per cent compared to the same period last year. Operating expenses increased $24 million year-over-year due to ongoing investment in the Australian franchise, NAB said.

“We have begun centralising our product management function to rationalise, standardise and innovate products, and we are further centralising our operations, technology and project services to deliver quicker cycle times, fewer errors and lower costs,” NAB CEO, Cameron Clyne, said in a statement.

“Our ongoing technology transformation has allowed us to organise our business to better service customers and to better respond to market developments, particularly those driven by digitisation.”

In the six months leading up to 31 March, NAB built and deployed the Oracle Credit Risk Engine, single customer view capability, a new data centre and NAB private cloud, Clyne said. In addition, the bank began deployment of 130,000 merchant acquiring terminals and launched digital customer services MoneyTracker and PeopleLikeU, he said.

“These initiatives will further enhance the customer experience, achieve productivity gains and lower costs across the Australian franchise.”

NAB has said it expects to save $800 million annually in a five-year plan to reduce the complexity of technology systems, centralise operations and support functions and reshuffle senior management positions. The bank is three years into a 10-year business transformation initiative to modernise its IT systems.

NAB executives have recently said a key part of the change is an increase in outsourcing to other companies, a practice it has termed “infrastructure on demand”. The company is also trialling BYOD for its top 200 executives.

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Tags OraclefinanceNABbanksfinancial institutionsInfrastructure as a Service (IaaS)

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