Judo Bank, catering to small and medium-sized businesses (SMEs), has announced its commitment to investing further in technology, digital capabilities, and data analytics. This initiative aims to support lending growth. Furthermore, achieve a leading cost-to-income ratio, which is a key measure of profitability and operational efficiency in the banking sector.
Under its “second horizon” plan, the Bank has launched a refreshed technology strategy that focuses on capitalizing on growth opportunities. Lisa Frazier, Chief Operating Officer of Judo Bank, emphasized that investments in technology, data insights, and digital innovation will collectively enhance customer experience. It can improve delivery and empower bankers to strengthen relationships with clients.
Frazier highlighted the cost advantages of Judo Bank’s cloud-based tech stack, coupled with the absence of legacy systems. It contributes to lower technology expenses. Additionally, she emphasized the flexibility of their tech stack, enabling the bank to select solutions and technology providers that best align with their business needs, optimizing total cost of ownership.
Bank’s Technology will focus on Four key Areas
The bank’s technology efforts will focus on four key areas. Firstly, Judo Bank will concentrate on building internal capabilities and investing in engineering expertise. Secondly, they will optimize cost of delivery by insourcing certain functions or establishing more cost-effective partnerships. Thirdly, the bank aims to consolidate and scale up existing systems, with automated testing capabilities being a particular focus. Finally, the Bank intends to invest in creating experiences that empower their bankers to outperform industry standards significantly.
Regarding data, Frazier acknowledged that it has been underutilized as an asset, often not easily accessible to frontline staff or decision-makers. Moreover, the Bank plans to leverage a cloud-based data platform designed for scalability, enabling reporting insights, advanced analytics, and future integration of artificial intelligence. These capabilities will empower bankers to effectively scale their portfolios. Also, the bank is developing self-service tools, including customizable dashboards.
Judo Bank recently launched new digital banking app
In terms of digital initiatives, the Bank recently launched its new digital banking app, providing lending customers with convenient access to account information and product details. This digital transformation is expected to reduce the volume of customer calls seeking basic transactional information, as customers can access it through the app.
Additionally, the bank plans to introduce proven technologies such as Customer Relationship Management (CRM), workflow, and Enterprise Resource Planning (ERP) systems to improve efficiency and reduce future cost growth.
Looking ahead, Judo Bank aims to invest in technology systems from FY24 that enable scalability. These systems are expected to facilitate portfolio growth, minimizing the need for additional recruitment in areas such as operations, finance, and risk.
Through these strategic technology investments, Judo Bank aims to enhance its lending capabilities, provide superior customer experiences, and drive operational efficiency, ultimately positioning itself.