NAB’s huge technology spend up
(1 November 2011 – Australia) National Australia Bank’s (NAB) results last week revealed an increase in spending by over a half on its IT infrastructure last year.
NAB shifted 425 IT jobs to IBM the bank grappled with a series of breakdowns in online platforms and poured more cash into a core banking transformation project.
Delivering its 2011 results on Thursday, NAB revealed that infrastructure spending soared by 56 percent during the year to A$719 million.
'Most of this investment was made in the group's Next Generation Banking IT platform and convergence of key technology and operational infrastructure,' the bank said in its presentation.
Like its peers, NAB is undergoing a painful root-and-branch overhaul of its legacy core banking platforms.
Having opted back in 2008 to install Oracle's i-Flex at the core, the bank says it will eventually commence the roll out of a 'foundation release' in 2012. A greenfield implementation of the system is already in operation at its online offshoot UBank.
Alongside the NextGen roll out, NAB initiated a company-wide desktop refresh and network modernisation programme during the course of the past year. It says upgrades to its technology infrastructure and payments systems will remain a priority for 2012.
Delivering its 2011 results on Thursday, NAB revealed that infrastructure spending soared by 56 percent during the year to A$719 million.
'Most of this investment was made in the group's Next Generation Banking IT platform and convergence of key technology and operational infrastructure,' the bank said in its presentation.
Like its peers, NAB is undergoing a painful root-and-branch overhaul of its legacy core banking platforms.
Having opted back in 2008 to install Oracle's i-Flex at the core, the bank says it will eventually commence the roll out of a 'foundation release' in 2012. A greenfield implementation of the system is already in operation at its online offshoot UBank.
Alongside the NextGen roll out, NAB initiated a company-wide desktop refresh and network modernisation programme during the course of the past year. It says upgrades to its technology infrastructure and payments systems will remain a priority for 2012.
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