With National Australia Bank Ltd [ASX:NAB] shares falling again today, executives within the company are blaming external factors.
CEO Andrew Thorburn stated that complexity is one of the main factors in the bank’s recent downfall.
The bank’s IT systems are a problem, with NAB employees constantly being tasked with untangling them and assessing various issues that arise.
NAB’s shares are valued at $29.15 a share with a market cap valued at almost $80 billion.
Today their shares have dropped by 0.80%.
Automated bank services turn sour
While other banks blame their unethical services on unprofessionalism, NAB are shifting blame towards its automated system.
NAB began a new technology-focused strategy nine months ago, which put simply, replaced many of its workers with computers.
NAB was aiming to reduce the overall number of applicants the bank received by a total of 20%.
They struggled to adapt to its new system, as the bank’s services lost a large amount of its quality and efficiency, resulting in dissatisfied customers.
However NAB remain persistent in their decision for the bank to become more computer focused.
ZDnet reported that NAB’s chief technology and operation officer Patrick Wright stated:
‘Cloud computing is becoming a dominant technology platform and our people need to have the relevant skills to deliver for our customers, customers are demanding seamless, digital experiences and we need to be ready to deliver.’
Operating expenses and technology investments plagued the bank soon after, and its recent struggles with the commission didn’t help their cause…
However, the bank isn’t excusing themselves, they take full blame.
Over the next three years, NAB will invest half a billion dollars to focus on their clients while putting forth further growth opportunities.
For Money Morning
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