Case Study: Banking Transformation — Core Modernisation and Market Expansion

Overview

A leading Australian bank set out to reinvent itself by entering retail banking and building a foundation for digital growth. Traditionally an investment bank, it faced the challenge of launching retail products (transaction accounts, term deposits) while modernising its fragmented core systems.

The program, with a budget of over $300M, became the largest technology transformation in the bank’s history. It required implementing a new core banking platform, integrating 30+ systems, and migrating hundreds of thousands of accounts, all under regulatory scrutiny and with zero tolerance for customer disruption.

Transformativ provided program leadership, guiding the bank from legacy constraints to a scalable, customer-centric digital platform.

The Challenge

• Legacy Technology: Fragmented systems with limited real-time capability.

• Market Expansion: First-time entry into retail banking with high customer expectations.

• Regulatory Oversight: Program conducted under close regulatory review due to systemic risk.

These challenges reflect broader industry pressures on banks worldwide: modernise core platforms to stay competitive against digital challengers (Accenture Banking Trends).

The Approach

1. Foundation & Governance

• Established a five-year transformation roadmap.

• Delivered early value with the launch of transaction and savings products.

• Scaled team from 15 to 400+, including global implementation partners.

• Introduced structured governance with executive and board-level steering committees.

2. Agile & Customer-Centric Delivery

• Piloted agile with a proof-of-concept, then scaled across squads.

• Applied design thinking workshops to align features with customer needs.

• Reduced product release cycles from 18 months to 3 months in some cases.

• Prioritised real-time payments and mobile-first user experience.

3. Core Banking Implementation

• Implemented SAP Core Banking as the backbone.

• Integrated with 30+ systems (payments, Mastercard, Cuscal).

• Executed parallel runs and staged cutovers for risk mitigation.

4. Change Management & Training

• Delivered structured training for frontline and operations teams.

• Communicated proactively with customers on migration and benefits.

• Embedded new agile and customer-first mindset within teams.

This approach reflects leading practices for complex core modernisation programs (Oliver Wyman State of Financial Services).

The Outcome

• Fastest SAP Core Banking Implementation: Achieved global recognition for speed and precision. First rollout delivered within budget and on schedule.

• Market Expansion: Launched first retail transaction accounts and debit cards, marking a successful entry into retail banking.

• Financial Impact: Boosted deposits by 35% and generated profit uplift in the first year.

• Cultural Shift: Embedded agile and MVP-driven innovation, enabling rapid future feature delivery.

The program positioned the bank as a leader in digital retail banking, aligning with global trends toward real-time, customer-first platforms (KPMG Future of Payments).

Insights & Lessons

1. Early wins build momentum. Launching products early created confidence in a high-risk program.

2. Agile in banking is possible. With executive buy-in, agile reduced cycles and aligned teams.

3. Core modernisation unlocks growth. A new backbone enabled rapid product innovation post-launch.

Key Highlights

• $300M+ core transformation delivered successfully

• Fastest SAP core banking implementation worldwide

• 35% deposit growth and profit uplift in year one

• Agile culture embedded for ongoing digital innovation

Core banking transformations are high-risk but high-reward. This program proves that with disciplined leadership, agile culture, and precise execution, banks can modernise at speed and scale, and use that foundation to expand into new markets.

At Transformativ, we specialise in guiding financial institutions through complex technology transformations that deliver both operational resilience and customer growth.

👉 Learn more about our Banking & Payments Transformation Services.