Challenger is looking to increase the transaction speed for its Synergy platform service by up to 10 times.
The Packer-backed group is investing in hardware and software systems as part of a program to upgrade the group's IT infrastructure.
"Our performance testing shows transaction process times are typically five times faster and some processes are up to up to 10 times faster on the new system," Challenger financial planning platforms and product director Robert Hayward said.
"This investment is being made to ensure capacity for the growth of our Synergy business as well as provide a solid base to support the planned developments for our products."
Synergy recently installed new technology to host the software that runs its member registry, investment systems and fund general ledger for all products.
"Synergy has been identified as a key driver of value for the division and it's important we continue to upgrade systems to support our ambitious growth plans," Hayward said.
The project is due for completion by June 2008.
Synergy had approximately $2.2 billion of funds under administration as of March 31 and has been operating since 1994.
