The Bank of Queensland has blamed previous underperformance on its complex product offerings and long processing times, as well as lagging digital uptake and tough regulatory conditions as it reveals its technology and growth-focused five year strategy.
The 165-branch bank announced its new strategy on Thursday promising to combine “traditional banking with contemporary digital capabilities” by slashing some of its 220 banking products and reducing conditional approvals for mortgages from five days to around one.
The bank also revised upwards its cash earnings guidance to be 4 to 6 per cent lower than the previous year, driven by better than expected income growth and lower default rates. In October, after unveiling a 14 per cent fall in cash profit, BOQ boss George Frazis said that in 2020 they were expecting “outcomes in line” with the” 2019 result.
BOQ’s five-pillared strategy promises a “transformation” in its two-pronged digital strategy –a cloud-based digital bank offering via its Virgin Money brand and a revamp of its customer facing digital platforms including a new mobile apps. An empathetic culture, focus on niche segments of the market and strong balance sheet are also part of the strategy.