ASX bank shares look out, AMP has new tech under the hood

S&P/ASX 200 Index (ASX: XJO) financial services and banking share AMP Ltd (ASX: AMP) is in the red today. Though, looking beyond the ASX, the company is experiencing new highs.

AMP is moving its core banking platform to the cloud to better support its retail banking business.

At the time of writing, the AMP share price is 98.2 cents. That marks a 0.81% fall on its previous closing price.

For context, the ASX 200 is trading higher today, having gained 0.19% right now. Meanwhile, the S&P/ASX 200 Financials Index (ASX: XFJ) is also in the red as the market awaits the outcome of the Reserve Bank of Australia’s July meeting.

So, what does AMP Bank’s new home in the cloud mean for its business? Read on to find out.

AMP Bank moves to the cloud

Owners of AMP shares may be thrilled to learn the company’s core banking platform now lives on the cloud.

AMP expects the move will create new levels of flexibility and scalability for its banking business, allowing it to meet the needs of its customers, mortgage brokers, and financial advisers.

It’s also expected to shorten customer response times, including loan application approvals.

AMP Bank group executive Sean O’Malley commented on the change, saying:

The transition of our core banking platform to the cloud provides us with a platform to grow our business and meet the increasing expectations customers have around digital sophistication in their interactions with their bank.

The cloud also enables greater flexibility in the way AMP Bank interacts with the banking ecosystem, providing more opportunities for product and service innovation

AMP Bank’s move to the cloud is just the latest in its multi-year transformation strategy. It follows the modernisation of the bank’s core system in 2020, which brought about a 35% improvement in productivity.

The now cloud-based platform is hosted on Amazon Web Services (AWS) and houses robust security.

AMP share price snapshot

While the AMP share price is in the red today, it has outperformed so far this year.

The company’s stock has slipped just 2.5% in 2022 while the ASX 200 is currently recording a 12.6% year-to-date tumble.

However, the AMP share price has slumped 12% since this time last year. That means it’s underperformed the index by around 3% in that time.

The post ASX bank shares look out, AMP has new tech under the hood appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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