Suncorp Bank’s ‘Project Ignite’ core banking overhaul “remains on track to be fully implemented by the end of FY16”, Suncorp group chief financial officer Steve Johnston today told a briefing on the group’s half year results.
In 2H16 the bank will roll Ignite out to its branch network.
During the half ending 31 December, the group’s cost to income ratio improved to 53 per cent, moving closer to its target of sub 50 per cent, which it expects to achieve following the completion of Project Ignite, Johnston said.
Final customer migration to the new platform and decommissioning of legacy systems will take part in the first half of FY17, Johnston said.
The bank has implemented personal loans and home lending functionality on the new platform and migrated customer and collateral data.
The bank has said the new platform will allow it to more quickly respond to changing customer and regulatory needs and boost its digital offerings.
It’s critical to “accelerate” the entire Suncorp group’s journey to digital, group CEO Michael Cameron said.
The group reported a profit for the half of $530 million, which Cameron said was “well short” of what Suncorp can deliver.
The CEO outlined refinements to the group’s strategy. Suncorp has a focus on “broadening and deepening the relationship with existing customers” rather than relying on increasing the number of customers, Cameron said.
“Instead of selling unrelated products or unconnected products to customers, we will take a ‘customer platform’ approach,” the CEO said.
“We already have some of the platforms to provide a broad range of solutions and we have commenced an omni-channel approach that allows our customers to interact with us in a way that suits them and their lifestyle,” Cameron said.
“Customers can interact with us through our many branches or stores, our contact centres, via digital including apps or online, and by using our trusted partners in the broker, advisor and intermediary world,” the CEO said.
“Suncorp’s reach with significant scale in general insurance, life insurance and banking, means we can uniquely meet customers’ needs in relation to motor, contents, building, liquidity (banking), longevity (superannuation), trauma, life and health.”
He described the approach as akin Apple with its app store and iTunes.
“Our 9 million customers will satisfy their needs by accessing any of our products and services, any brand, via our stores, our contact centres, via intermediaries and increasingly digitally,” Cameron said.
“This will include products and services from selected third parties, currently outside of Suncorp.”