Regional bank warns ‘we are living in a time of change’
A leading regional bank has defended its decision to acquire a global technology services firm that led to layoffs, saying the deal will prepare it for the future at a time when change is gripping the industry.
Some Bank of Queensland shareholders questioned the board about its recent connection with Capgemini at its annual general meeting on Tuesday.
The partnership, announced in August, has so far been associated with the elimination of 200 contact centre, lending and auditing positions.
Also at the meeting in Brisbane, shareholders raised concerns that up to 48 jobs in the financial crime team could be moved overseas.
Earlier this year, Bank of Queensland booked approximately $14 million in expenses relating to a remedial action plan negotiated with financial crime regulator AUSTRAC after it identified compliance deficiencies.
Asked why the financial crime roles were being undertaken by Capgemini, “an outsourcing provider working overseas”, chairman Andrew Fraser did not confirm any details, saying the bank was still consulting.
“The important point to make here is that any decision we ultimately make here will be in full compliance with all our obligations to AUSTRAC as a regulator on anti-money laundering and counter-terrorism,” he told the meeting.
These decisions are taken with the consultation of our people.
Mr Fraser said the Capgemini deal was a partnership that would give the bank access to deep external expertise and advanced technology.
“Financial crime is advancing rapidly and so as an organisation, we need to ensure that we are constantly looking at technology partnerships and skills development to be able to meet the mark when it comes to these pressures,” he added.
Mr Fraser said this would improve the way the bank meets its obligations to AUSTRAC and “do so in a way that also supports the future economic sustainability of the bank”.
Meanwhile, CEO Patrick Allaway told shareholders that construction of its digital bank is nearing completion, with 44 percent of customers switching from traditional banking platforms so far.
“We are managing this carefully to minimize temporary disruptions experienced by our customers,” he told shareholders.
Once completed, all retail customers will be on the new digital platform and legacy systems will be retired.
But Bank of Queensland remains committed to maintaining a physical presence primarily in its home country “as the role of branches evolves”.
A shareholder who disclosed his affiliation with the Financial Services Association asked about job security for workers.
“We are living in a time of change. This change is not going away,” Mr. Fraser said.
“And for everyone who works at BOQ, our commitment here is to ensure a sustainable future for the bank.”
Earlier this year, the bank reported a 53 percent drop in full-year net profit to $133 million due to write-downs and costs related to its remedial action plan and restructuring.
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