Nationwide has switched on a new mortgage system, based on SAP, aimed at improving its processes dramatically.

The world's largest building society is in the middle of £300 million business transformation programme, called Voyager, based around SAP enterprise resource planning software.

Last month, the company said it had completed the first live pilot of the overall SAP system for its core banking operations, and is now testing the software further. It is working with IBM, Capgemini and KPMG on the rollout.

Nationwide yesterday announced that its underlying profits had grown by nearly a third to £276 million for the year to 4 April, and said the mortgage system had "further improved our service delivery".

The building society stated in its annual review that it was vital to "operate modern, flexible systems supported by knowledgeable, well trained employees".

"In this context we continue to invest in our transformation programmes, which this year have included the delivery of a new data centre, launch of a new mortgage sales and originations system for mortgage intermediaries and ongoing improvements to our online bank," it added.

When the integrated banking platform is live, Nationwide said it will be able to "broaden" its range of current accounts on offer.

The company spent £300 million in the year on customer service and systems improvements.