Bendigo and Adelaide Bank invests in technology for Base II project

Bendigo and Adelaide Bank made enhancements to data, decision making processing, and risk and return measurements as part of its Base II Advanced Accreditation project during the first half of the 2016 financial year.

Bendigo and Adelaide Bank said the technology investments it continued to make as part of its Base II Advanced Accreditation project progressed well during the six months ending December 31, 2015.

According to the bank, it made enhancements to data, decision making processing, and risk and return measurements, which resulted in an improvement in customer service.

The Base II project is a move that was launched by the bank to improve the way it identifies and manages risk and services for customers through improved banking systems, business and risk management processes and practices, and operating a more capital efficient business.

At the end of 1H16, the company reported total amortisation of AU$64.5 million in capitalised costs from its Base II project.

The results come as the bank recorded after tax statutory profit of AU$208.7 million for the six-month period.

Meanwhile, total operating expenses came in at AU$445.9 million. Of total operating expenses, information technology costs accounted for AU$35.8 million, a 5.8 percent decrease from the previous corresponding period last year when AU$38 million was spent. Amortisation of software intangibles, on the other hand, jumped by 8.7 percent from AU$6.9 period from the previous corresponding period last year to AU$7.5 million.

Bendigo and Adelaide Bank managing director Michael Hirst said the bank is focused on providing outstanding customer experience with the use of new technology.

"Our technology innovations are market-leading in functionality and customer experience. Our award-winning miBanker app supports our business banking customers across many aspects of their business with advice and information, and our miVoice app sees us collaborating with customers around new initiatives," he said.

"We believe that a partnering mindset will allow us to remain at the forefront of customer considerations. This is a clear strategic objective that dovetails our bank's long-held belief that our success will come from focusing on the success of all stakeholders in our business."

During the 2014 financial year, total IT was the second-largest expense for the bank, with a total of AU$70 million spent; part of that was on software maintenance and costs associated with the implementation of the bank's new website.

Bendigo Bank was one of a handful of Australian financial institutions that announced they would be partnering with Google to bring Android Pay to cardholders this year.

Android Pay will allow customers of participating financial institutions to use their smartphone running on Android 4.4 or higher to pay at checkouts by simply unlocking their phone and holding it to a terminal that accepts contactless payments. The transaction works using near field communications technology.

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