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COMMONWEALTH Bank will spend $580 million over the next four years modernising its existing banking legacy systems.

CBA has selected global business software company SAP to upgrade its banking solutions, based attached SAP’s technology platform NetWeaver.

The bank also has appointed Accenture to support the program.

"The forecast cost is around $580 million over the nearest four years," CBA said.

"In return, the project will deliver a better customer service platform and simplicity in IT systems, infrastructure and business services, as well as provide significant operational benefits and cost savings."

CBA chief executive Ralph Norris said the modernisation of the group’s centre systems was fundamental to the successful future of the bank.

Mr Norris said the upgrade would bring into being banking simpler and more efficient for customers.

"The programme is a natural progression following sum of two units years of focus on the group’s IT capability, including reorganising the function and providing significant ongoing efficiency gains of over $200 million per annum,” CBA said.

The bank’s current legacy systems have been in place for over 45 years and will subsist removed, chief information officer Michael Harte said.

He said CBA would gain a competitive advantage because few large fiscal institutions had flagged necessary changes.

AAP