In the midst of rising competition from large banks, fintechs and neo banks, Australian Military Bank (AMB) wanted to evolve and equip itself to cater to the new breed of digital first customers. The bank wanted to become nimbler and more responsive to fast evolving customer needs by providing better banking services across various channels with customer-focused products.
“Twelve (12) months on from go live, AMB is well positioned to utilise the open Application Programming Interfaces (APIs) and cloud based infrastructure to provide further efficiencies; which will result in quicker turnaround times for members, automating routine activities to free up staff to take on more challenging work and, having the ability to integrate with open source APIs which will enable our bank to realise its strategy of being a digital first modern banking institution.”
– Andrew Brown | COO | Australian Military Bank
AMB opted to implement the Finacle stack, including core, origination, payments, and channels that delivered feature-rich digital functionality on private cloud via SaaS. In the first six months after go-live, the bank gained a multitude of new operational benefits and cost efficiencies, along with enhanced security and scalability. Finacle’s Open APIs enabled easy integration and co-operation with the bank’s partners and ensured that AMB was Open Banking and New Payment Platform (NPP) ready from day one.
The digital transformation also gave AMB a chance to re-evaluate its strategy. With a shift in focus to mobile banking, AMB enabled members to open an account in 2 minutes with access to integrated Personal Finance Management tool and real time alerts.
AMB DemiLite, a tablet-based banking solution, helps the bank reimagine customer engagement, for example, enabling onboarding at a place of customer’s convenience. By putting tablets in the hands of bankers, the bank has allowed them to go directly to military bases or gatherings of military personnel.
This shifts have led to a rationalization of branches, and the discontinuation of phone banking service.
The Finacle solution with its open APIs enables the bank to work effectively with multiple ecosystem partners.
Localisation capabilities in the solution, including 16 integration touch points, have empowered AMB to establish seamless end-to-end integration with major allied services providers and key partners such as credit bureau, ATM providers, and payments solution providers.
Banking in Australia is extremely competitive. Since the implementation, operating costs have been decreasing by 3% to 4%, while those of peers have been increasing by 5% to 7%. A net advantage of even 8% is a huge difference in a tight banking market.
The new origination system has helped the bank make the origination process simpler and drive continuous growth. AMB now has an out-of-the-box capability for easy reporting to regulatory bodies like APRA and can quickly adopt new regulatory changes.