National Australia Bank (NAB) has recruited Oracle to manage the roll out of the first phase of a A$1 billion overhaul of its core banking operations.
The bank says it has been developing the strategy for its new core banking platform for the past 18 months.
NAB selected Oracle for the first phase after an evaluation process which is thought to have seen Infosys miss out.
Oracle will now build the platform for NAB's new Star Direct business, which will include a specialised direct bank that will be launched later this year.
In the meantime NAB says it will spend the next six months planning the next phases of the core banking overhaul.
"This is a significant investment for NAB and we plan to take a very phased and measured approach over the next five years," says Michelle Tredenick, CIO Australia, NAB. "Our existing IT systems have served the business well to date, however they are not sufficient to support our future strategic direction."
According to local press reports, NAB is combining its enterprise services technology (EST) team - which consists of 400 staff - with its technology banking Australia unit, which comprises around 900 people, to support the overhaul.
In April Commonwealth Bank of Australia outlined plans to move its core banking operations to the SAP for Banking platform under a four year, A$580 million programme to overhaul its legacy systems.