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Virgin Money has announced it is launching a digital bank in Australia. Swiss financial software firm Temenos was approached to deliver the core banking platform for the new bank, while Deloitte Digital was selected to guide and support the build and rollout process.
According to Greg Boyle, CEO of Virgin Money Australia, the company is “uniquely positioned” to compete effectively with rival and established banks in the Australian market. “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 the global conglomerate Virgin Group, owned by famous billionaire Richard Branson. The firm provides services across a range of financial services, from savings accounts and pensions to commercial accounts and mortgages.
Now the company is looking to capitalize on Australia’s vibrant financial technology (FinTech) and the growing consumer preference for such services to successfully establish itself in the retail banking market. “Our goal is to build a leading digital bank that is beautifully simple and rewarding,” said Boyle, “committed to delighting our customers by delivering a seamless and end-to-end experience across all channels.”
The financial services group has brought on board two giants in the banking space to help it realize its vision. The IT banking infrastructure will be developed by Temenos and the firm will also provide Software-as-a-Service functionality once operational.
Temenos is a Geneva-based banking software company that delivers FinTech and digital banking solutions to more than 3,000 clients worldwide. This clientele includes 41 of the world’s 50 largest banks and includes banks in the retail, corporate, private and microfinance sectors, among others. In total, Temenos facilitates online banking for more than 500 million customers worldwide.
Meanwhile, Deloitte Digital, the digital consulting arm of Deloitte Consulting, will help design and build the Temenos solution and supporting applications and provide broader project management and digital transformation services. The firm will also support risk and regulatory topics to ensure the bank is fully compliant with local banking regulations.
Brad Milliken, 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 amid growing competition from so-called challenger banks. Last year they launched app-based banks Xinja and Volt Bank, and in 2018 Adelaide Bank launched Up Bank. Globally, companies such as N26, Monzo, Revolut, Atom Bank and Starling have quickly become serious contenders in markets including the US, UK and Germany.
Commenting on the development, Temenos CEO Max Chuard said: “We have seen great momentum in the Australian market from challenger banks to established institutions and we are excited to continue working with financial institutions to challenge the status quo. “We are delighted that Virgin Money Australia has chosen us as their technology partner.
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