Banking deals don’t traditionally include promises to build a technology hub. But that’s what ANZ Banking Group offered the Australian state of Queensland, better known for its beach holidays than its tech or financial infrastructure, to sweeten its bid for state-controlled Suncorp Bank. The takeover bid was rejected by the Australian Competition and Consumer Commission in August, but the two parties have appealed. If the deal is approved, it’ll be the biggest in Australian banking since 2008.

It’s also a sign of how technology is shaping bank office strategies, in that they are selectively expanding in markets where they want to grow their tech operations and can maintain robust talent pipelines, says David Purves, executive director, finance, resources and infrastructure, JLL.

“Digitalization is becoming a source of resiliency and innovation for banks that are operating in an environment of economic uncertainty, changing work preferences and increased regulatory pressures,” Purves says. “Tech transformation is critical to their long-term business growth.” 

The competition for talent now includes tech, fin-tech and a range of other disruptors, says Jackson King, director of tenant representation at JLL Australia. A younger talent pool has also heightened the requirement for organizations to have ambitious ESG goals and led many banks and financial institutions to review their workplace objectives. 

“While this often results in a reduced overall footprint, we’ve seen a real trend towards improved office environments – both through relocation to better quality and better located assets, but also through major fit-out works and investments in workplace technology,” he says.