A key regional bank has defended its decision to bring in a global technology services firm, which has generated job cuts, saying the deal will set it up for the future as change engulfs the industry.
Some Bank of Queensland shareholders questioned the board at its annual general meeting on Tuesday about its recent tie-up with Capgemini.
The partnership, announced in August, has so far been linked to the elimination of 200 contact centres, lending and audit positions.
As well, shareholders at the meeting in Brisbane raised concerns that up to 48 jobs in the financial crime team could be moved offshore.
Bank of Queensland earlier this year booked about $14 million in expenses related to a remedial action plan negotiated with financial crime regulator AUSTRAC, after it identified compliance shortcomings.
Asked why financial crimes roles were being picked up by Capgemini – “an outsourced provider that does work offshore” – chair Andrew Fraser did not confirm any details, noting that the bank was still consulting.
“The important point to make here is that any decisions that we ultimately do take here will be in full accordance with all our obligations to AUSTRAC as the regulator when it comes to anti-money laundering and counter terrorism,” he told the meeting.
“Those decisions are ones that are being taken in consultation with 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 progressing at pace and therefore we need to make sure as an organisation that we constantly look towards technology partnerships and upskilling to be able to meet the mark when it comes to those pressures,” he added.
This would improve the way the bank meets its obligations to AUSTRAC and “do so in a way that also supports the future economic viability of the bank”, Mr Fraser said.
Meanwhile, CEO Patrick Allaway told shareholders that the buildout of its digital bank was nearing completion, with 44 per cent of customers migrated from its heritage banking platforms so far.
“We are managing it carefully to minimise interim disruption to our customers,” he told shareholders.
Once complete, all retail customers will be on the new digital platform and the old systems will be retired.
However, Bank of Queensland remains committed to maintaining a physical presence, mainly in its home state, as the “role of branches evolves”.
One shareholder, who declared a link to the Financial Services Union, asked about job security for workers.
“We are living in a time of change. That change is not about to abate,” Mr Fraser said.
“And for everyone that works at BOQ, our commitment here is to provide a sustainable future for the bank.”
Earlier this year, the bank posted a 53 per cent fall in full-year bottom-line net profit to $133 million, due to a writedown and costs related to the remedial action plan and restructuring.
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