Australia: ME Bank outsources to focus on digital innovation

ME Bank is outsourcing components of its core banking capabilities, due to being spread too thinly. The move comes about as ME focuses its investments in digital innovation. ME has signed a five-year deal with Capgemini to oversee several core banking capabilities. Capgemini, a global technology consultant, will look to improve the process of launching products and services while ME retains control over the design and security of its banking system.

Mark Gay, ME Chief Technology Officer, explained the bank’s reason for outsourcing as, “We are a small bank with all of the same technology and overheads that a big bank has. If we hadn’t taken this approach, we were going to be spread very thinly, so by doing this we really believe that we can focus on the stuff that matters to customers.”

ME aims to concentrate its efforts on providing technology that will place it head-to-head with the big four banks as well as several smaller online banks. Unlike traditional banks ME is digitizing their process solely for the customers benefit. It follows in the approach of KPMG who announced an accelerator program in mid-2016.

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