Virgin Money taps Deloitte Digital for digital bank launch

12 March 2020 3 min. read
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Virgin Money has announced it is establishing a digital bank in Australia. Swiss financial software firm Temenos has been tapped to deliver the core banking platform for the new bank, while Deloitte Digital has been selected to guide and support the build and roll-out process.

According to Greg Boyle, the CEO of Virgin Money Australia, the company is “uniquely positioned” to effectively compete in the Australian market with challenger and incumbent banks. “We can build on our existing relationships with more than 200,000 loyal customers and a home loan portfolio that has quickly grown to more than $3 billion.”

Virgin Money is the financial services arm of global conglomerate Virgin Group, owned by celebrity billionaire Richard Branson. The firm provides services in a number of financial services domains, ranging from savings accounts and pensions to commercial accounts and mortgages.

Now, the company aims to capitalise on Australia’s vibrant financial technology (FinTech) landscape and growing inclination of consumers for such services, to successfully nestle its way into the retail banking market. “We aim to build an industry-leading digital bank that will be beautifully simple and rewarding,” said Boyle, “committed to delighting our customers by providing a seamless, end-to-end experience across all channels.”

Virgin Money taps Deloitte Digital for digital bank launch

The financial services group has brought two giants in the banking space on board to help it realise its vision. The IT banking infrastructure will be developed by Temenos, and after go-live, the firm will also provide Software-as-a-Service capabilities.

Temenos is a Geneva-based banking software company that delivers FinTech and digital banking solutions to more than 3,000 clients across the globe. This clientele includes 41 of the world’s top 50 banks, and spans banks in the retail, corporate, private, and microfinance domains, among others. In total, Temenos facilitates online banking for more than 500 million customers worldwide.

Deloitte Digital, the digital consulting arm of Deloitte Consulting, will meanwhile help design and build the Temenos solution and supporting apps, and provide broader project management and digital transformation services. The firm will also support with risk and regulatory topics, to ensure the bank is fully compliant with local banking regulations.

Brad Milliken, a partner at Deloitte Digital in Australia, said that to the tune of 100 Deloitte professionals from across Australia and Europe have been lined-up to work on Virgin Money Australia's digital bank.

The move comes at a time of growing competition from so-called challenger banks. Last year, app-based banks Xinja and Volt Bank launched, and in 2018 Adelaide Bank launched Up Bank. Globally, the likes of N26, Monzo, Revolut, Atom Bank and Starling have rapidly grown into serious challengers in markets including the US, the UK and Germany.

Commenting on the developments, Temenos chief executive Max Chuard said, “We've seen great momentum in the Australian market from challenger banks to established institutions and we're excited to continue working with financial institutions to challenge the status quo. “We are delighted to be chosen by Virgin Money Australia as their technology partner of choice.”