Bank of Sydney Adopts a Cloud-First Approach for Transformation

Cloud Partners Provide the Foundation

Core banking transformations have disrupted careers and led to the downfall of institutions. The challenge of replacing systems that manage every deposit, loan, and transaction has earned these projects the label “CEO or CIO killer.” Geoff recognizes these risks and has crafted a gradual approach that minimizes disruption to the bank’s essential operations while fostering momentum through careful partner selection.

The bank has teamed up with Infosys for its new core banking platform, transitioning to a cloud-based software-as-a-service model that signifies a major shift from earlier strategies. This collaboration meets the bank’s need for comprehensive coverage across all operational areas.

“It was crucial to deliver a technology platform that addresses all the bank’s needs regarding regulatory compliance, as well as the various channels, services, and products,” Geoff explains. “A more integrated approach was necessary.”

In addition to integration, the cloud migration is aligning the bank with technological advancements in the market that could not be achieved through internal investment alone. “We opted for a cloud transition because it keeps us current, and our partners have significantly deeper resources, ensuring we never have to play catch-up again,” Geoff states.

This strategic shift also transforms the bank’s financial model from capital expenditure to operational expenditure. This change offers greater flexibility while providing access to capabilities that would be prohibitively expensive and time-consuming to develop internally, enabling Bank of Sydney to compete with much larger institutions.

For its lending operations, Bank of Sydney has chosen Nucleus Software, enhancing the core banking transformation with specialized capabilities. This global provider serves financial institutions across Asia, the Middle East, and beyond, bringing proven expertise to the bank’s credit operations.

“Nucleus offers a cutting-edge cloud-based software-as-a-service model that provides an excellent end-to-end lending process,” Geoff reveals. “We haven’t fully utilized Nucleus’s capabilities yet, so we’re eager to continue that journey.”

The lending platform is already addressing challenges throughout credit operations that had previously frustrated both staff and customers. Previously, numerous manual steps caused delays and inefficiencies, but the integrated approach is now streamlining these processes and delivering tangible improvements.

Staff Experience Transformation

The technological changes are fundamentally reshaping how employees work, with results that illustrate the transformation’s impact on daily operations. Improvements are already evident across various areas of Bank of Sydney, although progress varies based on process complexity.

“In some of our simpler customer segments, we’ve already created much more time, but in more complex areas, we still have many manual steps that we need to eliminate,” Geoff explains.

This transformation allows relationship managers to concentrate on what Bank of Sydney excels at: building customer relationships. This change is particularly significant given the substantial amount of time that had previously been consumed by administrative tasks that added little value to customer interactions.

“We’re enabling some of our bankers to focus more on the customer rather than on administrative and back-office activities that were part of their roles,” Geoff says. “That had previously hindered them from engaging with our customers sufficiently.”

These operational enhancements come at a pivotal moment as customer demographics continue to evolve. Wealth is shifting to younger generations who expect digital-first banking experiences, while many customers maintain relationships with multiple banks, intensifying competitive pressure for service improvements.

The bank’s response balances innovation with its traditional strengths. “Our aim is not to be on the cutting edge, but to ensure we remain relationship-led, focusing on our core strengths in deposits, business banking, and customer relationships, while enhancing the experience with greater efficiency,” Geoff explains.