Heritage Bank could be able to “leap” its own planned digital transformation upgrade if a “merger of equals” with Adelaide-based People’s Choice Credit Union is approved.
in this week’s episode iTnews podcastCEO of Heritage Bank, Peter Lock, discusses the pending merger of the two organizations and how their IT ambitions align.
The merger, first proposed in 2021, is expected to make it one of Australia’s largest customer-owned banking institutions, with approximately 700,000 members and $22 billion in total assets.
Following final approval from members, regulators and the government, the Toowoomba-based mutual plans to integrate its core banking system with People’s Choice. create mutual alternatives to a big bank.
People’s Choice is already digitalization Adopted new CRM system by core banking platform Fiserv and Salesforce.
Through a unique process, Heritage Bank independently selected Fiserv as its future core banking platform, Rock said.
“Obviously, mergers are more attractive when moving to a single platform,” he said, adding that “whether the merger succeeds or not,” Heritage Bank will move to Fiserv. rice field.
“We made the decision that our core platform was no longer suitable for the bank we wanted to be.
“The upgrade People’s Choice is doing now is the platform we would have chosen. [will] dive into it.
“It sounds very easy, and I know it’s not, but it’s a leap that we would have made anyway.
“We believe this will allow the newly combined entity to have a very modern banking platform and supporting systems that will allow us to continue to deliver the digital transformation that all banks need. increase.
“We are confident that we will be ahead of the pack, not falling behind.”
IT integration talk
Lock said the two organizations are discussing future integration strategies.
“At the moment, we have an integration stream working between the two organizations to address the practicality of acquisition. [us] Operate as one bank [from] First day,” he said.
He believed that the technology transition would “take about three years.”
“We identified a variety of systems operating between the two organizations,” says Lock.
“We are currently at a stage where we need to select a system that we deem to be the best fit for the integrated entity, with the exception of the core.
“We need to figure out what we believe will give the best results for the target market we are aiming for.”
This means choosing one product origination platform, one credit risk management system, one fraud prevention system, one customer relationship management system, one credit framework, and so on.
“We’re moving to one operating system, one set of procedures, and one platform. The synergies that come from that are the benefits of the merger,” Lock said.
The combined entity has ambitions to expand its base from 770,000 members to “one million and even more.”
“To do that, we need to not only adapt to our existing members, but also have the kinds of products and channels that are appealing to new members.
Lock hopes its new core banking platform will help it attract a younger customer base while satisfying its existing customer base.
A new board and executive structure for the proposed combined entity was announced, but Locke will remain as CEO of the new entity, while the position of chief information officer (CIO) is currently being recruited, and at about the same time. It should be announced as final approval of the merger, he added.
Lock also said that once approved, an “IT bridge” will be implemented between the two organizations’ systems, allowing members to seamlessly continue banking operations.
“It’s just a matter of if they can come in and start trading under the other bank’s billboard, but all normal banking services for both brands will continue as normal.”
Heritage Bank Plans Leap to New Core Banking System – Finance – Software
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