Transforming Core Banking Operations: Tech Mahindra's Success with a Leading Australian Bank

Overview

Tech Mahindra partnered with a leading Australian bank to enhance and modernize its complex, homegrown core banking system managing over 20 million accounts. Faced with high operational costs, regulatory pressures, and a dwindling talent pool for mainframe support, the bank sought transformation.More

Tech Mahindra partnered with a leading Australian bank to enhance and modernize its complex, homegrown core banking system managing over 20 million accounts. Faced with high operational costs, regulatory pressures, and a dwindling talent pool for mainframe support, the bank sought transformation. Tech Mahindra delivered by rationalizing banking products, modernizing legacy systems, and enabling faster, compliant operations—ultimately achieving a 9.5% reduction in MIPS and dramatically improving customer experience.

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Challenges

  • High maintenance costs of a legacy mainframe-based core banking system.
  • Scarcity of skilled mainframe professionals for ongoing support and enhancements.
  • Complex personal banking portfolio with 150 overlapping products.
  • Need to comply with evolving regulatory mandates like Open Banking and BCOP.
  • Delays in customer onboarding and servicing leading to customer dissatisfaction

Key Solutions Features and Highlights

Product Portfolio Rationalization

Consolidated 150+ personal banking products into 86 using a phased, tool-based migration approach.

Straight-Through Processing (STP)

Enabled real-time account opening and servicing to streamline customer onboarding.

Legacy System Modernization

Upgraded core infrastructure and implemented tools to improve system reliability and reduce mainframe dependency.

Regulatory Compliance Enablement

Delivered Open Banking APIs and supported BCOP-related initiatives, ensuring full regulatory adherence.

Cloud Data Migration

Migrated enterprise data to a centralized Data Hub, enabling advanced analytics and cross-platform access.

Process Optimization

Implemented best practices for bulk asset uploads and streamlined data governance workflows. Enhanced data quality, compliance, and operational efficiency to support the client’s transformation into a data-driven enterprise.

Business and Community Impact

  • 9.5% Reduction in MIPS: Lowered operational costs through efficient mainframe usage
  • Account Opening Time: Improved from 3 days to just 218 ms
  • Customer Satisfaction: Achieved an average CSAT score of 4.24/5 over five years
  • Improved system reliability and compliance confidence