Tie-ins with Infosys and Genpact to lead to workforce changes across technology, business operations teams
Regional heavyweight Bendigo and Adelaide Bank improved its net interest margin (NIM) in the third quarter of its 2026 financial year, but warned that a workforce restructuring is underway as it chases efficiencies.
Residential lending growth improved by 4.2% on a year-on-year basis, with business and agriculture lending surging by 12.7%. This led to a six-basis-point NIM improvement compared to the previous quarter to 1.98%.
Operating expenses improved due to reduced staffing costs – and there is more to come in this regard.
Bendigo announced a seven-year technology service partnership with Infosys that “will significantly improve our IT service delivery capability and provide access to enhanced capabilities” and a six-year business operations partnership with Genpact “which will bring deep expertise in process optimisation and delivery to drive greater productivity”.
The bank said these partnerships will lead to “workforce changes” across its technology and business operations teams.
Chief executive and managing director Richard Fennell (pictured) said: “Decisions that impact our people are never easy. We acknowledge this will be a challenging time for our people and we are committed to lead these changes with care and respect."
Fennell said the changes are being put in place to adhere to Bendigo’s commitment for “business as usual expenses to be no higher than inflation through the cycle”.
The changes are expected to provide an annual run rate expense benefit of around $65 million to $75 million, realised by financial year 2028. Upfront transition costs of between $85 million and $95 million will be booked in the 2027 financial year.
