Bendigo and Adelaide Bank (ASX:BEN) entered the second phase of its ambitious Productivity Programme, announcing two significant long-term strategic partnerships designed to overhaul its technology and business operations.
The bank confirmed a seven-year agreement with Infosys and a six-year collaboration with Genpact.
The alliances are intended to accelerate the bank’s "2030 strategy" by leveraging global expertise in AI, software engineering, and process optimisation to create a leaner, more innovative operating model.
While the bank anticipates the shifts will drive sustainable growth and improve customer connection, the transition comes with a substantial human cost.
CEO and Managing Director Richard Fennell acknowledged that the programme will lead to workforce changes within the technology and business operations teams.
Although detailed team structures are still being finalised, the bank has committed to consulting affected employees throughout the design process, with Fennell noting that decisions impacting staff are "never easy".
Bendigo Bank expects to incur upfront costs between $85 million and $95 million, primarily hitting the balance sheet in FY27.
However, the long-term goal is a projected annual run-rate expense benefit of $65 million to $75 million by FY28.
The efficiencies are crucial for the bank to maintain its previous guidance of keeping business-as-usual expenses no higher than inflation.