Big four banks’ half year results 2025

Core banking modernisation: simplifying legacy systems for future value

Digital transformation across the big four major banks continues to reshape the landscape, highlighting the crucial interplay between technological innovation, customer-centric strategies, and embedding security and trust.

In FY24, technology spend increased by 15.2% to $8.9 billion, as reported across the Majors. Banks continue to accelerate efforts to assess and adopt emerging technologies, such as AI agents and machine learning. These technologies are streamlining operations and reducing costs, allowing banks to offer personalised and convenient services to their customers.

Emerging technology aside, focus continues to shift towards core platform simplification, modernisation and dealing with legacy technology debt. Insights from the KPMG Global Tech Report 2024 – Financial Services Insights highlight 58% of executives admit that flaws in their foundational enterprise IT systems disrupt business-as-usual on a weekly basis. The big four major banks are increasingly looking to improve resilience and uplift business continuity.

And, to fully realise the potential of technology investments, value must remain on the table. This means an ongoing focus on the planning, sequencing and coordination of broader business integration and change across the value chain.

KPMG Connected Enterprise for digital innovation

KPMG is a leading partner for digital transformation in the banking sector, merging wide-ranging global expertise with in-depth banking industry knowledge. Through our leading Connected Enterprise solutions and extensive market insights, we craft tailored business and technology solutions that not only drive sustainable growth and foster innovation, but also significantly enhance the customer and employee experience.

KPMG’s nuanced understanding of the digital banking landscape enables us to navigate complex core platform modernisation, especially within the stringent regulatory framework of the Australian banking sector. Regardless of your organisation’s size or technological platform, we deliver customised strategies and comprehensive technology solutions from inception to implementation.

We are at a critical digital juncture. The ability to relentlessly orchestrate multiple, complex, concurrent changes whilst harnessing new technology will increasingly differentiate banks. And customers stand to be the winners.