National Australia Bank (NAB) expects to save $800 million annually in a five year plan which includes reducing the complexity of its technology systems, centralising operations and support functions, and reshuffling senior management positions.
NAB’s updated strategy also includes introducing simpler and fewer products, making better use of data, further capitalising on its customers’ links to Asia and better servicing the ageing population and superannuation industry.
NAB is three years into a 10-year business transformation initiative to modernise its IT systems. NAB’s executive manager of enterprise transformation, Adam Bennett, said last week that a a key part of the change was an increase in outsourcing to other companies.
NAB group CEO, Cameron Clyne said on Wednesday that the bank’s “total technology transformation program is progressing well with the core infrastructure upgrade nearing completion and NextGen well advanced.”
“The changes announced today, combined with continued investment in the business of over $1 billion per annum, will reduce complexity and duplication across NAB, provide a better, simpler and easier-to-access product suite, provide more straight-though processing as well as ensure the more effective use of data and analytics to provide the right solutions for customers at the right time,” Clyne said.
NAB said the expected $800 million per annum savings would be partly offset by higher amortised charges, reinvestment and implementation costs.
The bank has also reshuffled senior management positions. Notably, Gavin Slater, who oversaw the technology transformation as group executive, group business services, will move to group executive, personal banking.
Lisa Gray, currently group executive, personal banking, will also become group executive, enterprise services and transformation.
According to Clyne, the investment in better technology and the consolidation of systems allows the bank to bring together a wide range of operations, technology and project functions to simplify processes and reduce duplication.