Announcing H1FY20 results, Suncorp CEO Steve Johnston revealed new business growth via digital transformation strategy even while acknowledging “more work to do across the four strategic priorities”
Suncorp delivered a net profit after tax (NPAT) of $642 million for the first half of FY 20. Mr Johnston said, “the results reflect the progress we have made in implementing the refocused strategy outlined to the market in August 2019”.
“While there is more work to do, we’re confident in the progress made across each of our four strategic priorities. This was achieved against the backdrop of challenging economic conditions and significant natural disasters, including storms and bushfires”.
CEO Steve Johnston
Digital First
The group’s digital channels “are driving strong new business growth” with digital sales up in Insurance (Australia) by 13% while the AAMI division claims a 33% increase over a comparable period.
Suncorp also revealed increased use of digital tools to improve the broker application process. Deposits also have seen growth via digital channels.
AI and data analytics to improve competitive advantage targeting improvement in client interfaces and back end supporting systems and processes.
Investment in digital self-service capabilities are set to increase targeting improvements in efficiency, scalability and speed
Customer engagement via digital varies from a low of 18% in digital claims to an impressive 59% in banking new business sales.
Although there are questions on the validity of NPS as the benchmark for validating customer delight, Australian financial institutions haven’t shied away from measuring and tracking NPS.
Unveiling the H1FY20 results, Macquarie Group’s Head of Banking and Financial Services stated Macquarie bank is proactively measuring NPS at specific points. Suncorp also revealed tracking NPS as a benchmark for customer advocacy and client experience even as executive remunerations are tied to NPS (about 20%).
Suncorp’s Open banking program is reported to be in flight and on track for implementation. The program is poised to develop new services to deliver greater personalisation. Here’s a list of the group’s digital priorities ahead:
Digital Priorities
- Zero Touch Claims capability
- AI and Data Analytics
- App parity with Banking app and improved user experience
- Single Customer View
- Development of new Identity management capability aligning with consumer data right
- Leveraging APIs to unlock customer data for multiple customer initiatives
Suncorp is no exception to the trend of investment in regulatory compliance post the Banking Royal Commission findings and scrutiny – Investment in Technology and regulatory projects has risen leading to increased operating expenses. Also not entirely for growth reasons, the NZ insurance business has also seen an increase in technology investment related to Life systems after the sale of Australia Life business and what Suncorp terms as “adverse claims experience”.
The bigtech’s foray into financial services and the agile moves of challenger banks have set alarm bells ringing. CBA recently announced initiatives with X15 Ventures where Microsoft is expected to play a major role as a tech partner. National Australia Bank is on a multi-year tech transformation program supported by investments in technology via NAB Ventures.
