Tasmania's MyState Ltd is on track to complete its A$6.3 million core system overhaul by October, which will see it replace its current Fiserv computing platform with the TCS Bancs system.MyState was able to get a close look at the TCS Bancs system when it bought The Rock Building Society, a Bancs user, in 2011.The migration to the new platform began in earnest in January, according to David Mills, head of technology.Over the next 18 months, MyState will also move The Rock's core platform off its in-house computers and into the Transaction Solutions (TAS) data centre. Based in New South Wales, TAS Managed Solutions provides managed services for around 50 of Australia's credit unions and building societies.  The company already hosts MyState's current core banking platform and provides operational support, and conducts day-end consolidations.Mills said the decision to move The Rock's systems across to Transaction Solutions was largely "about risk management", although he acknowledged there could, potentially, also be head-count reductions following the transition. Currently, the company has a team of around 30 people in its IT operation.MyState managing director John Gilbert acknowledged that, while large banks often wielded technology investment as a competitive differentiator, "there is an aspect in the smaller ADI [authorised deposit-taking institution] sector that basic technology is a cost to [the participant]".However, the quid pro quo is that "our project will cost $6.3 million, which in the context of core banking is relatively modest, so the pressure to get the savings is not the same" as it would be for a major investing billions in such a program.Gilbert also said there was less pressure from customers in terms of their expectations regarding banking innovation. "The advantage of being small is that we can sit back and be a follower. Right now, our customers still enjoy branches [and] telephone banking… [but] we do have a mobile facility." He acknowledged, however, that: "What they are comfortable with today might not be the same in a year. But one of the advantages of being small is that we can move quickly."