NAB to unveil its first NextGen product

Technology investments will allow customers to apply for new products without any human interaction involved.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

As part of its 10-year, $1.1 billion NextGen core systems replacement program, National Australia Bank (ASX: NAB) will unveil a new customer account designed to improve efficiency and make better use of data analytics.

Whilst it is a common occurrence for the banks to release new products, the new 'USaver Ultra' account is being flagged as 'hugely significant in the context of the bank's evolution', according to The Australian Financial Review.

The account is applied for, verified and originated without any human interaction and will use the bank's new internal system referred to as "Know Your Customer", which will perform all of the necessary security checks required to open an account, such as the checking of passports or driver's licenses.

In regards to the costs that will be saved with the new product (which is the first product of NAB's new series) Adam Bennett, the bank's executive general manager of IT transformation said "over time, we think the marginal cost of opening a new account will become very low."

The dominance of the big four banks has climbed to a new level since the global financial crisis, and each are delivering record-breaking profits. In order to continue this trend, cost-cutting has been one of the primary focuses amongst the group. Earlier this year, Cameron Clyne, the bank's CEO, advised that an enormous amount of money would be saved as a result of more efficient processes – an amount he estimated would be worth around $800 million annually.

Aside from cost-cutting and being able to deliver a better service and experience to the end customer, technology investments are now more important than ever to investors – particularly with the growing threat of technology behemoths such as Apple (Nasdaq: AAPL) or Google (Nasdaq: GOOG) stealing the banks' market share.

The new services will aim to provide customers with a better service and will hopefully assist the bank in growing market share. Currently, the bank is only a third of the way through its 10-year technology advancement program.

Foolish takeaway

NAB's investments into new technology systems is quite advanced compared to Westpac (ASX: WBC) and ANZ (ASX: ANZ), but many analysts have suggested its investments are still significantly behind those made by Commonwealth Bank (ASX: CBA). On the other hand, the bank itself has claimed that its IT work is far more ambitious than the work conducted by any of its key rivals.

Are you interested in our #1 dividend-paying stock? Discover The Motley Fool's favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of "The Motley Fool's Top Dividend Stock for 2013-2014."

More reading


Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned in this article.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »