AMP Bank has embarked on a strategic audit of its banking technology, with a view to overhauling its core operating platform.The bank, which commemorates two decades in the Australian banking market this year, has partnered with several technology suppliers to evaluate options for replacing its aging NTBS system.Chief executive Sally Bruce told Banking Day that the bank had identified Swiss-based digital banking specialist Temenos as a preferred partner in the review process.However, she declined to reveal details of the timeframe for implementing the transformation."We've been working for some time now on how we will modernise the bank for scale in the future," she said."That's looking at many things including automation, chat bots, decisioning and product ledger.While Bruce concedes the business has a challenge replacing its legacy systems, she says she is comfortable that the transformation is achievable."We've got some work to do to step away from legacy platform," she said."But I feel very comfortable that we have a task that's very doable as a bank that's still quite small and that has never acquired or tried to integrate another platform."So, we find we can move the dial on things with good pace."While media coverage of the advent of pure technology-driven banks such as volt bank and the Cuscal-funded 86 400 has focused on whether they can win market share from major banks, their emergence appears to present a more immediate threat to the market positioning of established challenger brands such as AMP Bank and ME Bank. ME Bank is currently bedding down a core transformation, which has also involved the replacement of an NTBS system with Temenos infrastructure.Volt, the first startup to secure a restricted banking licence from APRA, is also using Temenos infrastructure.Bruce recognises the threat that new competitors such as volt and 86 400 might present to established challengers such as AMP Bank."I think every industry is going to have new entrants that create a different dynamic," she said."So, it's unwise to ignore them and unwise to not be mindful of the learnings and agility they bring."I always watch them with great interest as I do our other competitors."However, Bruce also questions the "disruptor" credentials of some startups.She observes the raison d'etre for many is to build capabilities and market share so that they become attractive buyout targets for leading market players."I'm not sure that all are being developed to disrupt," she said."I think a number are being developed to be acquired at some point."