BOQ’s new strategy is based on five pillars, first and foremost a digital transformation based on the implementation of digital and cloud-based technologies that would allow it to have “all the advantages of an established bank, with the digital agility of a neobank”.
“BOQ will leverage its core strengths, differentiators and strong customer engagement through an enhanced digital offering to deliver sustainable performance improvement,” said Managing Director and CEO George Frazis.
“Our strategy combines traditional banking services with contemporary digital capabilities to better serve our customers, provide better products and services, be agile and improve productivity. »
The bank aims to streamline its product offerings and IT systems as part of this digital transformation strategy. Currently, BOQ has around 15 core product platforms and hundreds of applications, but will develop a new common retail platform through its investment in the new digital bank and loyalty program based on the Virgin Money Australia cloud.
“This five-year strategy is the next iteration of a bank that has been serving its customers for 145 years,” Frazis said.
“We will leverage our existing competitive advantages, knowing that customers are increasingly looking for alternative ways to bank. »
The bank will disburse $100 million per year before reducing to $80 million per year in FY23 and $60 million in FY24. The investment will be partially financed by earnings from efficiency and productivity that will save a projected $90 million by FY23.
Other elements of the bank’s five-year strategy include focusing on its “empathetic culture” and “niche customer segments” which will provide the greatest opportunities to grow sustainable returns.
“The work is underway and we are starting to see improvements on key indicators including customer satisfaction, growth in home loans and business loans,” Mr Frazis said.
“BOQ is evolving at a steady pace and will build on this initial momentum in the months to come. I am confident that we have the right strategy and roadmap to grow the business in a way that meets the expectations of our customers, shareholders and employees.
BOQ also revised its forecast, expecting cash profits for FY20 to be 4-6% lower than FY19, amid revenue growth and improved bottom lines regarding depreciation.
