Virgin Money Australia picks Temenos Transact as new core system
Virgin Money Australia, a division of Bank of Queensland (BOQ), has kicked off a systems change by selecting Swiss technology firm Temenos.
Virgin Money has opted for Temenos’s T24 Transact core banking system and Infinity digital banking suite. Both will be deployed in the cloud using a software-as-a-service (SaaS) model provided by the vendor.
BOQ revealed a five-year plan focused on digital transformation in February. Chief executive George Frazis promised a new mobile application and an overhaul of its technology infrastructure by the end of 2020.
The bank has previously blamed under-performance on the complexity of its product offerings and long processing times. It has vowed to cull a portion of its 220 different products and drop mortgage approval times from five days to one.
Founded in 1863, it purchased Virgin Money Australia for $40 million in 2013. Under the terms of the deal BOQ has rights to the Virgin Money name in Australia for four decades, as long as it maintains royalty payments.
The new Transact platform will initially be rolled-out for Virgin Money Australia customers with transactions and savings accounts and later across deposit and lending products.
BOQ has also announced its intention to migrate its retail banking business onto the Temenos platform.
“Virgin Money Australia is uniquely positioned to build on our existing relationships with more than 200,000 loyal customers and a home loan portfolio that has quickly grown to more than $3 billion to effectively compete in the Australian market with challenger and incumbent banks alike,” says Greg Boyle, Virgin Money Australia CEO.
“We are at the beginning of an exciting journey as we build an industry-leading digital bank that will be beautifully simple and rewarding.”
Temenos CEO Max Chuard says that the Australian market has seen some great momentum from challenger banks and incumbents in recent years.