Posts Tagged ‘Commonwealth’

Commonwealth Bank of Australia has released its annual results for the year….

Среда, Август 31st, 2011

From LinkedIn Group News

“Commonwealth Bank of Australia (CBA) has released its annual results for the year ended 30th June 2011. So far, the results of the core modernisation project, for which costs passed the AU$1 billion mark last year, include the migration of all retail transaction and savings accounts to the new platform, SAP for Banking, and the preparation for migrating lending and business banking accounts. This migration is scheduled to start in H2 2011 and to last through 2012. In its latest letter to shareholders, issued in April, the bank described the project progress as ‘excellent’. ‘All retail customer information, term deposit, savings and transaction accounts now operate on the new SAP platform,’ it said. ‘This represents in excess of ten million customer accounts, which makes it the largest banking migration in Australian history.’ CBA has continuously referred to this core transformation initiative as its ‘largest single investment’. It started in 2008, with an anticipated cost of AU$580 million. However, subsequent extension of the SAP for Banking coverage to CBA’s subsidiaries, ASB Bank and Bankwest, enterprise-wide branch rejuvenation, rising expenses on software maintenance and development, and the lack of skilled resources contributed to doubling the initial estimate and extending the project timeframes by nearly a year. Earlier this year, the bank announced the project would require another AU$370 million. The bank’s half-year results for H2 2010 revealed that AU$311 million was poured into the core transformation venture in the course of 2010, which equated to 30 per cent of CBA’s total investment spend that year. The SAP for Banking related work at ASB and Bankwest will take place in 2013. The recently unveiled figures for Bankwest show a total of AU$93 million already spent on IT integration since the bank’s acquisition by CBA in 2008. By comparison, the restructuring at Bankwest has amounted to AU$18 million and property integration cost AU$41 million. Other integration-related expenses (including operations) have come to AU$94 million, adding up to nearly a quarter of a billion of AU dollars spent on Bankwest integration overall. The latest figures released by ASB include AU$56 million of IT expenses for nine months ending 31st March 2011 (AU$52 million for the same period a year before). The bank also went through a management change: Charles Pink resigned as managing director in November 2010, less than two years into the job. Ian Park, ASB’s chief executive of retail banking, temporarily took over. In April 2011, Barbara Chapman, ex-senior executive at ASB and CBA’s group executive for HR and group services, was appointed MD and CEO of ASB. In 2013, CBA plans to fully retire its legacy systems, which include CSC’s Hogan platform. This was announced by CEO of CBA, Ralph Norris, at a recent analyst presentation. Norris will not see the project through as he is leaving CBA later this year. His successor is Ian Narev, who is currently the group executive of business and private banking, having joined the CBA group in 2007 from McKinsey & Co. He will take over as CEO in December.”


CBA extends core banking deadline by one year as costs skyrocket

Пятница, Февраль 11th, 2011

Commonwealth Bank of Australia has extended its core banking tech modernisation programme by a year, and upped spending on the project to $1.1 billion, almost double its original estimates of $580 million.

CBA first outlined plans in April 2008 to move core banking operations to the SAP for Banking platform under a four-year, A$580 million programme. In 2009, the budget was extended by $150 million to cover the inclusion of subsidiaries Auckland Savings Bank and Bankwest.

In a half-yearly results presentation yesterday, CBA admits that “areas of added complexity” have extended the delivery timeframe by a year.

The bank says it achieved a significant milestone this year with the successful national launch of retail saving and transaction account functionality to the new system. CBA now has over 11 million accounts and over $100 billion in balances operating on the SAP platform with improved functionality such as instant account opening and immediate product switching capabilities.

As the bank switches attention to the migration of business accounts and lending products it says it has spied opportunities to add functionality over and above what what was initially scoped, including a switch to multi-entity enabled processing. This should make it faster and cheaper to ultimately include the offshore banking businesses.

However, the new functionality is not coming cheap, with the total spend on the project ballooning to over $1 billion.

The experience of Australia’s banks in migrating to new core systems is being keenly watched by other Tier 1 banks, which continue to operate on decade’s-old legacy technology.

In October, Australian banking giant Westpac set back by four years the timetable for migration of its core banking platform to the Hogan system used by its subsidiary St George as it set out a complex roadmap for technology change entailing substantial integration work and the decommissioning of multiple legacy platforms and data centres at the bank.

CommBank hits core banking milestone

Четверг, Декабрь 16th, 2010

By Suzanne Tindal, on December 16th, 2010

As of last weekend, all of the Commonwealth Bank’s retail accounts have been moved to its new SAP-based core banking system, according to the bank’s CEO Ralph Norris.

“We have converted all of our retail accounts, so all of our deposit accounts, transactional accounts, term deposits, savings accounts and … internet accounts onto this new platform,” Norris told a Senate Committee today.

The result is that any transaction which occurs between these accounts should occur in real time. Unfortunately, transactions between banks won’t be in real time.

“We converted the last of those accounts last weekend and we now have all of our retail accounts now operating real time, so any transaction that takes place anywhere within our banking network will be registered instantly.”

Merchant accounts would be able to enjoy the real-time banking from the end of 2011, according to CommBank. This will allow real-time recognition of takings, even on weekends.

The bank had completed moving over its term deposit accounts in March this year, but had yet to tackle the savings and transaction accounts.

The systems upgrade is part of a now over $700 million core banking revamp being carried out with the help of SAP and Accenture to modernise the bank’s central systems.

SAP for banking в Commonwealth Bank of Australia

Четверг, Апрель 1st, 2010

Кратко в цифрах о Commonwealth Bank. Напомню, что в этом банке идет проект внедрения SAP corebanking.

О банке:

  • 38,000 staff
  • 9.3 million customers
  • 1009 branches
  • 3300 ATMs
  • 4 million credit card accounts
  • 187,000 EFTPOS machines
  • 5.18 million POS transactions daily
  • 10+ call centres
  • 120 million calls per annum
  • $185 billion mortgage portfolio
  • 2.7 million active Netbank users
  • 70,000 new registrations each month
  • 100,000 regular mobile banking customers
  • $20 billion NetBank transactions each month

Объем задачи просто впечатляет. Пожелаем им удачи.

New CommBank core now holds customer info

Четверг, Февраль 11th, 2010
By Renai LeMay,                    10 February 2010 02:17 PM
The Commonwealth Bank of Australia (CBA) today said it had migrated all customer information onto its core banking system as it reaches the halfway point of the mammoth $730 million modernisation project.

The project was initiated in April 2008 as a four-year, $580 million initiative to overhaul the bank’s ageing legacy systems with the aid of Accenture and SAP. In August last year, CBA tipped another $150 million into its budget to bulk up some sub-systems, as well as extending the platform to subsidiary organisations.

The project was on track and a number of key milestones would be achieved this year, according to the bank.

“The group’s largest single investment, the four-year banking modernisation, remains on schedule at its halfway stage and will achieve a number of key milestones this year, including migration of all deposit and transaction accounts to the new system,” the bank said today in statements associated with its financial results for the six months to 31 December.

“All customer information migrated, three live trials underway,” the bank said, boasting of “quantum improvements” in customer service and efficiency.

It said it had suffered just five incidents (believed to be IT outages or problems of some kind) in the six months to 31 December. This figure has been gradually shrinking since 2007, when the bank had 48 incidents for the full financial year.

The bank’s total IT services expenses for the period shrank to $485 million from $493 million for the six months previously to June, but were still substantially up on the IT services for the six months to 31 December 2008, when they were $380 million.

The main changes in the IT expenses through December, compared with six months earlier, were a $30 million decrease in applications maintenance and development costs and a $31 million increase in the cost of amortising software assets.

Use of the bank’s NetBank platform is steadily increasing, with CBA racking up an average of 36.3 monthly NetBank log-ons in the 2010 financial year so far, versus 18.5 million in the 2007 financial year.

Finally, the bank noted that it was planning to align the systems of recent acquisition Bankwest by the 2012 financial year, with full integration of Bankwest’s accounts into CBA’s new core banking platform to happen after FY2012.