Bendigo and Adelaide Bank Partners with MongoDB to Modernize Core Banking Technology Using Generative AI
Bendigo and Adelaide Bank has partnered with MongoDB to modernize its core banking technology using MongoDB Atlas and generative AI. This initiative, aimed at enhancing customer-focused innovation, reduced development time by up to 90% and migration costs to one-tenth compared to traditional methods. The bank leveraged AI-powered automation to cut application testing time from over 80 hours to just five minutes. The modernization of the Agent Delivery System, a key retail banking application, was completed in under three months. The transition to a microservices architecture with a robust API ecosystem has improved data integration and enhanced developer efficiency. Future plans include migrating 50% of the bank's critical workloads to the cloud by year-end.
- Development time reduced by up to 90%.
- Migration costs reduced to one-tenth of traditional methods.
- Application testing time cut from over 80 hours to just five minutes.
- Modernized core banking application in under three months.
- Transition to microservices architecture and robust API ecosystem.
- Increased developer efficiency and innovation.
- 50% of critical workloads targeted to migrate to the cloud by year-end.
- Dependence on MongoDB and generative AI for critical processes.
- Potential risks and costs associated with future migrations of other legacy applications.
Insights
Bendigo and Adelaide Bank's decision to modernize its core banking technology using MongoDB Atlas and generative AI tools is a significant step forward for the institution. From a financial perspective, the claim that the migration was achieved at
In the short term, these savings directly benefit the bank's financial health and could potentially lead to positive adjustments in earnings forecasts. For long-term implications, increased agility and reduced complexity in IT operations might translate into sustained competitive advantage, helping the bank to innovate faster and offer better services to customers.
Moreover, the adoption of a microservices architecture and a robust API ecosystem aligns with current industry trends, positioning Bendigo and Adelaide Bank well for future technological advancements. However, investors should be mindful of the execution risks associated with such a significant transformation.
The shift to MongoDB Atlas and the integration of generative AI tools represent a major technological leap for Bendigo and Adelaide Bank. The transition from a legacy relational database to a modern document-based system like MongoDB is a substantial move. MongoDB's document model offers a more intuitive and flexible approach for developers, facilitating faster development cycles and easier scalability.
The use of generative AI to automate repetitive tasks, such as reducing application test case time from 80 hours to five minutes, demonstrates the bank’s commitment to leveraging cutting-edge technology to enhance productivity. This transformation will likely reduce time-to-market for new features, thereby improving customer satisfaction and retention.
However, investors should consider the potential challenges that come with integrating new technology, such as the need for ongoing training and the possible initial teething problems. Yet, the long-term benefits of such modernization efforts often outweigh the short-term hurdles, creating a resilient and forward-thinking IT infrastructure.
The partnership and technological upgrade indicate a strategic move by Bendigo and Adelaide Bank to stay competitive in the rapidly evolving financial services industry. By integrating MongoDB Atlas and generative AI, they are enhancing their digital capabilities significantly. This modernization effort can potentially lead to a better customer experience, which is a critical factor in retaining and attracting new customers in the banking sector.
Additionally, the focus on microservices architecture and APIs facilitates better interaction with third-party services and improves the bank's adaptability to future technological changes. This strategic alignment with modern technology trends can attract tech-savvy customers and improve overall market position.
However, market analysts must watch for how effectively these technological improvements translate into actual customer and market gains. While the potential is high, execution and real-world application will determine the true market impact.
- Reduced the development time required to migrate a core banking application off of a legacy relational database to MongoDB Atlas by up to
90% . - Migrated onto MongoDB Atlas at one-tenth of the cost of a traditional legacy-to-cloud migration.
- Automated repetitive developer tasks with new AI tooling in order to accelerate developers' pace of innovation. For example, AI-powered automations reduced time spent running application test cases from over 80 hours to just five minutes.
In less than three months, the bank modernized its Agent Delivery System, a legacy retail banking application, on MongoDB Atlas with the help of MongoDB Relational Migrator and generative AI-assisted modernization tools. The Agent Delivery System is a retail teller application for the bank's agent branches, and is used in communities where digital banking functionality is made available from non-bank businesses, like newsagents or pharmacies. Prior to partnering with MongoDB, the bank ran the system on a legacy relational database that lacked the flexibility to easily evolve to reflect the complex data mapping requirements that today's modern applications demand. Because of these database-related challenges, the bank's analysts and developers were committing significant effort to complex database management tasks in order to keep the application running.
As a technological leader in the Australian financial services market, Bendigo and Adelaide Bank was eager to enable its developers to focus on more meaningful innovation so the bank could remain agile in a fast-moving market. To do so, the bank decided to modernize its Agent Delivery System to make it easier for its developers to work with data and create innovative, accessible banking services. Specifically, the bank sought to adopt a new microservices architecture to help integrate its data and a robust API ecosystem—a series of connective mechanisms that enable easy data exchange—to facilitate fast, easy data flow between the bank's applications, third parties, and consumers.
The bank chose MongoDB Atlas as the underlying platform for its tech stack because of the high levels of security and reliability offered by MongoDB Atlas, its ability to manage the bank's real-time, operational data on a unified platform, and because of the intuitive developer experience offered by MongoDB's document model, which maps to how developers think and code, enabling them to build applications faster.
To migrate the Agent Delivery System to MongoDB Atlas, the bank deployed MongoDB Relational Migrator—a tool that helps customers eliminate barriers like time, cost, and risk frequently associated with cloud migrations—to expedite codebase analysis, service decomposition, and application refactoring, ensuring a secure and efficient migration. MongoDB Professional Services worked with Bendigo and Adelaide Bank to create customizable generative AI tooling, including scripts and prompts tailored for the bank's unique tech stack, which accelerated the modernization process by automating integration testing and code generation for seamless deployment of the new Agent Delivery System's microservices architecture. Legacy migrations can otherwise be long, expensive processes, but these solutions enabled Bendigo and Adelaide Bank to complete the migration with 90 percent less human effort and at one-tenth of the cost of a traditional legacy migration.
With this migration, Bendigo and Adelaide Bank has eliminated volumes of routine code writing and programming work with automated generative AI tooling, which has empowered the bank's developers to innovate with increased agility and more quickly deploy highly-available and performant application features that enhance end-user experiences.
"This migration was an enormous step forward in our transformation journey and a perfect marriage of people smarts and tech smarts. It's an investment in our customers," said Andrew Cresp, Chief Information Officer at Bendigo and Adelaide Bank. "Now, our lean, highly skilled team can ask MongoDB Atlas and the generative AI tooling MongoDB's Professional Services team built for us to do really smart things, leaving our developers free to focus on other ways they can deliver great outcomes for our customers. We've started by modernizing our most critical applications, and next, we intend to tackle a number of other outdated legacy applications across the bank, putting us on track to meet our target of 50 percent of our critical workloads in the cloud by the end of the year."
"It's important that MongoDB empowers its customers to modernize with applications that are not just future ready, but future-defining. This is paramount for financial institutions, who need to transform quickly and take advantage of advancements like generative AI to best serve their customers," said Simon Eid, Senior Vice President, APAC at MongoDB. "Applying the power of AI to Bendigo and Adelaide Bank's migration process was game-changing. MongoDB looks forward to helping more customers quickly and easily ditch the rigid legacy technology that is slowing them down to achieve all the benefits a modern technology stack can bring to their businesses."
About MongoDB Atlas
MongoDB Atlas is the leading multi-cloud developer data platform that accelerates and simplifies building modern applications with a highly flexible, performant, and globally distributed operational database at its core. By providing an integrated set of data and application services in a unified environment, MongoDB Atlas enables development teams to quickly build with the security, performance, and scale modern applications require. Millions of developers and tens of thousands of customers across industries—including Cisco, GE Healthcare, Intuit, Toyota Financial Services, and Verizon—rely on MongoDB Atlas every day to innovate more quickly, efficiently, and cost-effectively for virtually every use case across the enterprise. To get started with MongoDB Atlas, visit mongodb.com/atlas.
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Forward-looking Statements
This press release includes certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning MongoDB's partnership with Bendigo and Adelaide Bank and the application modernization initiative. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "project," "will," "would" or the negative or plural of these words or similar expressions or variations. These forward-looking statements reflect our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and are subject to a variety of assumptions, uncertainties, risks and factors that are beyond our control including, without limitation: the effects of the ongoing military conflicts between
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