Customers win from BOQ Group’s new digital bank
Tuesday 5 July 2022
Nearly 4 million customer transactions have already been processed through BOQ Group’s new cloud-based digital core banking systems since they were commissioned in mid-2021.
As part of the bank’s digital transformation update, it was revealed that that BOQ and Virgin Money Australia (VMA) brands were attracting a younger demographic with 25% of customers using new apps being under 35.
BOQ Group CEO and Managing Director, George Frazis, said the Group was making steady progress in digitising its operations and building its new digital bank in the cloud.
“Since 2019, we have been simplifying and modernising our business to improve the experience of our customers and bankers,” Mr Frazis said.
“Already, the Virgin Money Australia and BOQ transaction and savings functions are now operating on our new cloud digital bank, and work is underway to shift ME Bank deposit transactions to the new cloud platform.
“We are modernising our core and digitising processes end-to-end which will give us the flexibility of a neobank but with the scale, strong capital position and proven brands of an established institution with 148 years in banking. This will provide the Group with a compelling competitive advantage over both existing players and new entrants.”
Customers are continuing to benefit as we move more of our retail and business bank functions onto the new cloud-based platform.
In April, the myBOQ app was launched, providing new features such as instant Osko payments, PayID, Savings Round Up, bill tracker, and live in-app chat. Opening a transaction account at BOQ or Virgin Money now takes under 5 minutes with the app.
Already, 56% of customers using the myBOQ app were existing BOQ customers who have self-migrated to take advantage of the best-in-class technology.
Mr Frazis said the Group was simplifying its operations with the goal to halve the number of IT systems over the coming years.
“Rather than simply shifting our business to work around legacy systems we are building two related core platforms, one for our retail and one for our business customers which can service our multiple brands and will drive greater efficiencies,” he said.
BOQ Group is partnering with global platform provider Temenos to move all retail brands and systems to its single cloud-based core platform. For more complex business customers they will be serviced on the latest Temenos on premise platform.
“Our strategic partnership with Temenos is crucial to meeting our transformation vision. By using a ‘banking-as-a-service’ model we can achieve rapid transformation while still maintaining high customer service levels and strengthening relationships with the communities where we operate,” Mr Frazis added.