• Enters 7-year technology partnership with Infosys to enhance IT capabilities
• Enters 6-year business operations partnership with Genpact to drive productivity
• Expects annual expense benefit of $65-75M by FY28, with $85-95M in transition costs

Bendigo and Adelaide Bank Ltd (ASX:BEN) has announced the second phase of its Productivity Program, which includes entering into two new strategic partnerships to evolve its operating model and drive innovation for customers. The bank has signed a seven-year technology service partnership with Infosys to significantly improve its IT service delivery capability and access enhanced capabilities, software engineering, and AI talent. It has also entered a six-year business operations partnership with Genpact to bring deep expertise in process optimization and delivery, driving greater productivity and supporting stronger risk management. These partnerships are expected to support the bank's ability to meet the rapidly evolving needs of customers and stakeholders, while allowing it to focus on its core strengths, including customer connection and its strong deposit franchise. The process and operational improvements from these partnerships will lead to workforce changes, impacting the bank's technology and business operations teams. While substantial progress has been made, the detailed design for all impacted areas is yet to be finalized, and employees will be consulted on roles and team structures. The bank acknowledges this will be a challenging time for its people and is committed to leading the changes with care and respect. The operational efficiencies delivered through this change are expected to support the bank's previous guidance of business-as-usual expenses being no higher than inflation through the cycle. As a result of these changes, the bank expects an annual run rate expense benefit of approximately $65 million to $75 million to be realized by FY28, but it also expects to incur upfront transition costs of approximately $85 million to $95 million, the majority of which will be incurred in FY27.

The bank expects an annual run rate expense benefit of approximately $65 million to $75 million to be realized by FY28, but it also expects to incur upfront transition costs of approximately $85 million to $95 million, the majority of which will be incurred in FY27.