BOQ unveils plans for a digital bank

  • By Christine St Anne

The Bank of Queensland announced plans to become a “digital bank of the future with a personal touch,” as part of its strategy overhaul.

On Thursday, the regional bank unveiled details of its “refreshed” five-year strategy to improve on customer service, drive growth and shareholder value.

The strategy includes five pillars including a digital bank of the future that will be underpinned by a “comprehensive digital transformation”.

This will be achieved through implementation of digital and cloud based technologies starting with the investment in the Virgin Money Australia new digital bank that is well under way.

To deliver against these priorities, the bank will continue its capital investment of about $100 million per annum before scaling down to $80 million per annum in fiscal 2023 and $60 million in fiscal 2024.

In a statement the banks said that the investment would be staged and prioritised to achieving long term shareholder value.

The investment uplift will be partly financed through efficiency and productivity benefits.

Other four pillars include an “empathetic culture” that will support better customer service and staff engagement; ensuring its distinctive brands focus on niche segments; a simpler business and maintaining a strong financial and risk position.

The bank also revised its fiscal 2020 guidance with cash earnings now expected to be 4 per cent to 6 per cent lower than fiscal 2019 driven by expected income growth and improved defaults rates.

Indeed a strategy overhaul was on cards for the bank when it announced its full year results in October which saw a 14 per cent fall in cash profit.