Westpac Enhances Focus on Unite Technology Simplification

Westpac has made significant strides in its Unite program, a multi-year initiative focused on technology simplification, by consolidating the number of initiatives from 85 to 61. With 39 of these initiatives currently underway—approximately three times the number in May—Westpac aims to streamline operations and enhance efficiency across its banking processes.

Outgoing CEO Peter King emphasized that the Unite program is designed to consolidate the bank’s best practices, particularly in areas such as identity verification. By reusing the identity verification system initially developed for its mortgage business, Westpac plans to merge 22 distinct verification processes into one unified system. This effort has already resulted in the consolidation of 18 consumer processes, which King highlights as a pivotal outcome of Unite that enhances the customer experience while providing significant operational benefits.

For customers, the new digital verification process promises to be faster and more straightforward, leading to improved success rates for new customers onboarding with the bank. Employees are expected to benefit from increased engagement time with clients as administrative burdens are reduced, and shareholders are projected to see financial benefits, with an estimated investment of $25 million in the initiative that could yield ongoing annual savings of $15 million. The initiative is also aligned with compliance commitments to the Australian Banking Association’s scam-safe accord.

Looking forward, Westpac anticipates expanding the number of initiatives under Unite to around 50 by 2025. To optimize the program’s effectiveness, the bank has reduced its total initiative count to enhance delivery sequencing. Notably, there has been a change in the scope of the program; the decision was made to consolidate three deposit systems into one rather than the previously planned two. King expressed confidence that a single deposit system would manage data volumes effectively while simplifying processes and reducing project costs.

In 2024, Westpac invested approximately $150 million in the Unite program, primarily focusing on planning and resource ramp-up, as well as initiating the first phases of projects. King indicated that Unite is expected to account for 35 to 40 percent of Westpac’s estimated $2 billion annual investment envelope between 2025 and 2028. He clarified that Unite is not a complete overhaul of the bank’s technology systems but rather an acceleration of ongoing simplification efforts through a coordinated approach.

As Peter King prepares to transition the CEO role to Anthony Miller, he has opted to defer questions from financial analysts about specific milestones for the Unite program in 2025. He indicated that Miller would be better positioned to provide insights after acclimating to his new responsibilities. This leadership change marks a pivotal moment for Westpac, as the bank continues to navigate its technology simplification initiatives.

In the broader context, Westpac has reported a 9 percent rise in technology expenses for FY24. This increase is primarily attributed to escalating costs related to software licensing, data storage, and vendor inflation. Despite these challenges, the bank has managed to offset some of these financial pressures through savings achieved via automation initiatives, demonstrating a commitment to improving operational efficiency.

Furthermore, Westpac recorded a net profit after tax of $7 billion for the year, which represents a 3 percent decline compared to the previous financial year. This figure reflects the ongoing challenges in the banking sector while underscoring the importance of strategic initiatives like Unite in enhancing the bank’s performance and positioning for future growth. With Miller at the helm, stakeholders will be watching closely for updates on the implementation and impact of Unite, as well as Westpac’s overall strategic direction in an increasingly competitive financial landscape.