Bank of Queensland is “80-to-85 percent” through migrating customers off the legacy Me Bank core to a new Temenos-based core under a long-running transformation, with attention now turning to the transition off of its own legacy core.
The bank has been transforming its technology estate since 2023, with the aim of consolidating multiple legacy core banking systems to ultimately enable it to operate “on a modern, cloud-enabled digital platform”.
Managing director and CEO Rod Finch told BoQ’s half-year results briefing that the digital platform “remains a core enabler of our retail strategy supporting customer growth, improving customer experience, and progressively enhancing the economics of the retail bank.”
“Following the launch of term deposits during the half, the core build is now complete, and our focus is shifting to ongoing enhancements that further extend our proposition,” he said.
“To date we have migrated more than 300,000 customers, with over 70 percent of active retail customers on the platform.
“Growth and engagement are particularly strong across younger demographics which was a key strategic objective of the digital bank.”
Finch said that customer migration off the legacy Me Bank environment is “80-to-85 percent done”, enabling the bank to start thinking about decommissioning the older system.
“The way I would think about the migration off of legacy [is that] there’s actually two legacy environments we talk about. There’s the Me legacy environment which we’re 80-85 percent done with, with final migration events planned for later this half [year], and then we move into decommissioning.
“Then our attention will move to the BoQ legacy environment. Our intent is to start migrations for BoQ in [FY]27 and then work our way through it.
“We’ve built really strong execution capability [around customer migration]. We are redirecting the team [to the BoQ legacy environment and migration] as we close out the Me migration.”
Aside from saving costs from running multiple older core systems and appealing to the banking needs of younger customer demographics, Finch said that the new digital cloud-based core set the broader bank up well for emerging AI opportunities.
“Foundationally, operating on a modern, cloud-enabled digital platform is creating a strong underlying capability for the deployment of AI and automation,” he said.
“This has allowed us to explore introducing AI-driven automation across customer operations, particularly in the contact centre, with further opportunities to improve customer experience and reduce cost to serve.
“We continue to evolve the use of AI across the business with the establishment of a central AI hub to drive adoption and deployment of use cases, including near-term opportunities in the contact centre, commercial lending and technology development.”
The bank is also working with Capgemini under a deal struck in 2025 covering technology and business processing services.
CFO Racheal Kellaway said that “whilst we have seen early success in our business processing partnership, we are experiencing some delays in the transition of our technology outsourcing.”
BoQ reported a statutory net profit after tax of $136 million, down 20 percent compared to the corresponding half in FY25.
