CommBank IT spend passes $1 billion

CommBank IT spend passes $1 billion

Technology spend rise 12 per cent over the past financial year

The Commonwealth Bank of Australia's technology spend rose 12 per cent over the past financial year to shoot past the $1 billion mark, with spending in almost all technology areas increasing.

In its annual results briefing pack, the bank revealed its total IT services spend over the year to 30 June had risen to $1,029 million — up from $921 million the year before.

Costs in the areas of application maintenance and development, data processing and communications services all rose, as well as the cost of amortising software assets and IT equipment depreciation. The only bright spot was the cost of desktop services, which shrank slightly.

The bank has yet to comment on the rise. It is, however, in the midst of its core banking modernisation project and is also enmeshed in integrating BankWest's systems into its own.

The project was initiated in April 2008 as a four-year, $580 million initiative to overhaul the bank’s ageing legacy systems with the aid of Accenture and SAP. In August last year, CBA tipped another $150 million into its budget to bulk up some sub-systems, as well as extending the platform to subsidiary organisations.

In its presentation, the bank said the core banking modernisation project was "on track and delivering", with all customer information migrated onto the platform, as well as its more than one million term deposits.

It plans to shift its retail deposit accounts onto the new platform by the end of 2010, and its lending deposits by mid-2012. After that, it will integrate the operations of BankWest and ASB in New Zealand onto the new core banking system.

Harte has recently been attempting to publicly drive a strategy of inter-bank cooperation in an attempt to force powerful vendors into changing their attitude towards cloud computing — a technology which has the potential to offer organisations a chance to take costs out of their IT infrastructure spend and make their delivery arrangements more flexible.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Financial Servicescommonwealth bankIT spendingMichael Harte

More about Accenture AustraliaBankWest AustraliaCommonwealth Bank of AustraliaCommonwealth Bank of AustraliaSAP AustraliaWest

Show Comments