The year 2019 could go down in the history of National Australia Bank as a forgettable year for reasons beyond digital strategy. The scathing remarks and findings by the Banking Royal Commission have impacted the brand image making it an uphill task for NAB CEO Ross McEwan.
“I’m in no illusion about the challenges before us,” said the new boss. The New Zealand born banking industry leader is no stranger to this environment though.
In his first address at the recently concluded AGM, Mr McEwan has articulated the five focus areas for the bank. The importance of NAB digital strategy is not lost on the senior leader.
Although there’s no specific mention of the tech giants’ growing penetration into Financial Services, he’s highlighted the need to be competitive, “otherwise we will be left behind by new tech-driven financial service providers”.
In a setback to NAB, Australian Securities and Investments Commission recently alleged NAB has violated the law over 10,000 times, with theoretically massive penalties.
Focus on Five Areas
Mr McEwan articulated the five focus areas for the bank. Technology focus continues to be part of the strategy. NAB has been on a digital transformation journey with a plan to go 100% on the cloud. It’s no secret major banks have embraced the cloud paradigm and new-gen technologies and approaches including Microservices, containerisation among others.
Safe and Secure
Security is a top priority for the former CEO of Royal Bank of Scotland. Ross has outlined the need for NAB to remain a safe and secure bank with resilient systems and technology meeting client demands.
NAB is building an “integrated security function” bringing together cybersecurity, fraud, investigations, and physical security as part of an ongoing security initiative code-named ‘security fusion’. The recent ransomware attack on Toll Group and the subsequent business impact is a grim reminder of the security challenges for enterprises.
Get the Basics right
“It starts and ends by getting basics right for every customer, every time…delivering consistently and reliably”
Focus on Fundamentals. Not too much to ask for but in the current circumstances particularly post Royal Commission Findings it’s imperative.
Employee Delight
Although not in so many words, the message seems to be loud and clear. NAB has to be a good place to work, with a culture that supports employees’ aspirations. NAB has been on a national and global recruitment drive for the last 2 years adding up to 2,000 new jobs to meet the changing needs of customers.
Easy to do business
“Use these foundations to make it easy for customers to do business with NAB – when, and where and how they want to,” said the new boss.
Simplification is a critical priority as part of NAB’s technology transformation agenda. Other leading enterprises have simplification as a critical part of their strategy.
Telstra has its T22 strategy while CBA has “Simplify our business” as a part of its core strategy. CEO Matt Comyn recently said the bank has targeted a 25% reduction in the number of apps while embracing the cloud paradigm.
Although NAB has a strategy to go 100% on cloud and obvious differences are in the details, Ross’s announcement is yet another affirmation of the growing need to simplify and make it easy for business.
“We exist because our customers choose to do business with us”
Ross McEwan, Chief Executive Officer
Growth
Ross concludes these measures will lead to growth. And how? “When we put these elements together we grow”. Sounds simple. Cost pressures and thinning margins aside, Ross is steering NAB towards “long term growths, not quick wins”.
Digital Strategy
Continue to develop the best digital and mobile services to be competitive, otherwise, we will be left behind by new tech-driven financial service providers
It looks like Technology hasn’t lost its place of importance in NAB’s new world. The emphasis on resilience and better experience with reliable systems should allay any fears.
“Resilience of our technology is Non-Negotiable. We will continue to strengthen our tech environment to deliver better Experiences.”
Does this mean the ongoing tech transformation agenda at NAB will continue? Probably yes.
Will the renewed focus on basics and “doing it right” help NAB become the bank of choice with five-star ratings by customers? The Ross strategy, if any, will take time to reveal itself and of course its implications on tech investments. In the aftermath of royal commission findings and the outages that NAB suffered the last year, it’s imperative to ask will this be enough?
More to come
