Teachers Mutual Bank will soon start rolling out shared technology services that it claims will change the way customer-owned banks do business and improve collaboration in the sector. These services – which can be utilised by users of the Ultradata core banking system – could potentially create a multi-billion consortium that can tender for significant reductions in operational costs through vendor services, the bank said on Monday. Customer-owned banks will gain initial access to a suite of digital services for the cost of one to two FTE staff per annum when the program starts to roll out in 2017. Mutual banks will be able to access increased third-party data integration, data cleansing, and the capacity to share digital data across the sector, said Teachers Mutual Bank’s CIO David Chapman. A key benefit will be the reduction of cost-to-income ratios for participating custom-owned banks, he said. “Currently, the average cost to income ratio for customer-owned bank is around 80 per cent, while for the major banks, it is about 45 per cent. We can and must drive this down to keep delivering for our members. Offerings such as our enterprise data warehouse technology will significantly level the playing field in regard to this disparity,” Chapman said. The ability to realise the benefits of single source data services is something that the major banks – with their reliance on disparate legacy systems – can only dream of, Chapman claimed. “Moreover, these shared systems mean that we can join together a force of mutual banks that will punch well above their weight with increased competitive vendor services, and superior digital services for members,” he said. Regional Australia Bank has partnered with Teachers Mutual Bank on penetration security testing – a shared service that is being used by 12 different mutual banks. Regional Australia Bank CIO Rob Hale said the penetration system had resulted in around a 40 per cent operational cost saving for the organisation. “Through this shared service, it is possible to offer these critical cost savings to another dozen customer-owned banks who ordinarily couldn’t have negotiated such competitive terms,” he said. Teachers Mutual Bank’s Chapman said shared services infrastructure, which is already being used internally at the bank, has reduced service times for home loan approvals and account changes. They have also provide the bank with a better understanding of its member base, ensuring it can provide the right products to the right customer, and enabled staff to provide more responsive and personalised customer service to members. Related content BrandPost The future of trust—no more playing catch up Broadcom: 2023 Tech Trends That Transform IT By Eric Chien, Director of Security Response, Symantec Enterprise Division, Broadcom Mar 31, 2023 5 mins Security BrandPost TCS gives Blackhawk Network an edge with Microsoft Cloud In this case study, Blackhawk Network’s Cara Renfroe joins Tata Consultancy Services’ Rakesh Kumar and Microsoft’s Nilendu Pattanaik to explain how TCS transformed the gift card company’s customer engagement and global operati By Tata Consultancy Services Mar 31, 2023 1 min Financial Services Industry Cloud Computing IT Leadership BrandPost How TCS pioneered the ‘borderless workspace’ with Microsoft 365 Microsoft’s modern workplace solution proved a perfect fit for improving productivity and collaboration, while maintaining security of systems and data. By Tata Consultancy Services Mar 31, 2023 1 min Financial Services Industry Microsoft Cloud Computing BrandPost Supply chain decarbonization: The missing link to net zero By improving the quality of global supply chain data, enterprises can better measure their true carbon footprint and make progress toward a net-zero business ecosystem. By Tata Consultancy Services Mar 31, 2023 2 mins Retail Industry Supply Chain Green IT Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe