BOQ’s new strategy is built on five pillars, chief among which is a digital transformation dependent on the deployment of digital and cloud-based technologies that will see it have “all the strengths of an established bank, with the digital flexibility of a neo-bank”.

“BOQ will build on its key strengths, distinctive features and strong customer engagement through an enhanced digital offering to deliver sustainable performance improvement,” said Managing Director and CEO George Frazis.

“Our strategy combines traditional banking with modern digital capabilities to better serve our customers, deliver better products and services, be agile and improve productivity.”

The bank is looking to streamline its product offerings and IT systems as part of this digital transformation strategy. BOQ currently has around 15 core product platforms and hundreds of apps, but will develop a new common retail platform with its investment in Virgin Money Australia's new cloud-based digital bank and loyalty program.

"This five-year strategy is the next iteration of a bank that has served its customers for 145 years," Mr. Frazis said.

"We will build on our existing competitive advantages in the knowledge that customers are increasingly looking for alternative ways of banking."

The bank will commit $100 million a year before reducing to $80 million a year in FY23 and $60 million in FY24. The investment will be partially funded through efficiency and productivity benefits, which will save an estimated $90 million by FY23.

Other parts of the bank's five-year strategy include a focus on its "empathetic culture" and "niche customer segments" that will provide the greatest opportunities to increase sustainable returns.

"The work is underway and we are starting to see improvements in key metrics including customer satisfaction, growth in home lending and business lending," Mr Frazis said.

“The BOQ is moving at pace and will build on this early momentum in the coming months. I am confident that we have the right strategy and roadmap to grow the business in a way that delivers for customers, shareholders and our people.”

The BOQ also revised its guidance, projecting cash earnings for FY20 to be 4 to 6 percent lower than FY19 on the back of earnings growth and an improved impairment result.