NAB core revamp to target jobs?

NAB has been briefing its staff on moving its core business systems to a next generation platform, a move which could presage offshoring some jobs.

NAB has been briefing its staff on moving its core business systems to a next generation platform, a move which could presage offshoring some jobs.

It is too early to say which systems are moving to the new platform and when, according to a spokesperson for the bank, adding that the transition will happen within the next five years, and two vendors have been short-listed for the project — Oracle and Infosys.

"It's too early at this stage to get an idea of what the future shape and size [of the platform] will be," the spokesperson said.

At a briefing last week for staff on the core banking modernisation program, employees were also briefed on the bank's offshoring programs. "Offshoring is part of any change program," the spokesperson noted, adding that such initiatives have saved the bank AU$292 million over the past three years.

Even if an employee's role disappears as the changes come into affect, they may not necessarily have to leave the bank. In previous offshoring initiatives, 94 per cent of the affected staff found work in a different role in the bank, the spokesperson said, and those who didn't were given aid to find new jobs through agencies.

The cost of the systems revamp has not yet been revealed, although NAB MD John Stewart said at the company's half yearly results last month that its typical annual investment spend was generally between AU$800 and AU$900 million, and that the bank aims to fit the move to a new IT platform within this budget.

The Commonwealth Bank is also undertaking core banking modernisation, at a cost of AU$580 million.

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