Westpac Banking Corporation · ASX:WBC
Westpac Banking — Investor Presentation (March 2025)
46 slides from Westpac Banking's investor presentation, Mar 28, 2025
Slide 1: ASX Release: Westpac market update
ASX Release 28 March 2025 Westpac market update Westpac Banking Corporation (“Westpac”) today provides the attached update. For further information: Hayden Cooper Justin McCarthy Group Head of Media Relations General Manager, Investor Relations 0402 393 619 0422 800 321 This document has been author
Slide 2: Westpac 28 March 2025 Market Update
WESTPAC 28 MARCH 2025 MARKET UPDATE Westpac Banking Corporation ABN 33 007 457 141 IMPORTANT: This presentation contains a number of 'forward looking statements' which are subject to assumptions, risks and other important information set out in the disclaimer at the back of this presentation.
Slide 3: Anthony Miller, Chief Executive Officer
ANTHONY MILLER CHIEF EXECUTIVE OFFICER
Slide 4: CEO Priorities
CEO PRIORITIES 3 Westpac Market Update March 2025 PERFORMANCE Improve ROTE and cost to income relative to peers Improve market position CUSTOMER Whole of bank to whole of customer approach Improve customer experience PEOPLE Attract, retain and invest Externally focused, accountable and empowered TRA
Slide 5: Innovation to Support Service Excellence
4 Westpac Market Update March 2025 INNOVATION TO SUPPORT SERVICE EXCELLENCE DIGITAL BANKER BIZEDGE • Supports 20,000 employees • Consistent and better customer experiences across all channels • Automating business lending origination • Faster lending decisions WESTPAC ONE • Leading transaction banki
Slide 6: UNITE: One Best Way – The Best of Westpac Delivered Consistently
Westpac Market Update March 2025 UNITE: ONE BEST WAY – THE BEST OF WESTPAC DELIVERED CONSISTENTLY 1 ‘For sale’ and ‘not for sale’ products across Consumer and Business & Wealth. 5 CONSOLIDATE TECHNOLOGY • Customers experience the best Westpac technology • Significant productivity: Run and change cos
Slide 7: UNITE: Mortgages Simplification
UNITE: MORTGAGES SIMPLIFICATION1 6 Westpac Market Update March 2025 1 This includes 4 initiatives. Migrating mortgage customers to a single suite of products, processes and applications DISCOVERY Understand change requirements Develop delivery plans Estimate costs and benefits SIMPLIFY Enhance featu
Slide 8: UNITE: Mortgages Simplification – Expected Outcomes
UNITE: MORTGAGES SIMPLIFICATION – EXPECTED OUTCOMES1 7 PRODUCTS REDUCED 17 TO 92 Westpac Market Update March 2025 1 This includes 4 initiatives. 2 Available for sale products. • Consistent experience for new and existing customers • Access to market leading products and features • Faster to serve cu
Slide 9: UNITE Initiatives Underway and to Commence in FY25
8 UNITE INITIATIVES UNDERWAY AND TO COMMENCE IN FY251 • Group Executive to lead Transformation, including UNITE • Refining and optimising delivery plan – Deposit processor consolidation – new plan for 9 initiatives – Initiatives consolidated to 60 – 41 initiatives currently in progress – 4 initiativ
Slide 10: UNITE: Risk Management & Governance
UNITE: RISK MANAGEMENT & GOVERNANCE 9 Westpac Market Update March 2025 3-IN-A-BOX OPERATING MODEL BOARD Active director engagement through Directors oversight working group and regular Board reporting at every meeting EXECUTIVE LEADERSHIP Weekly CEO meeting – risk and performance tracking to committ
Slide 11: Peter Herbert, Chief Transformation Officer
PETER HERBERT CHIEF TRANSFORMATION OFFICER
Slide 12: UNITE: Business Led Tech Enabled
UNITE: BUSINESS LED TECH ENABLED 11 Westpac Market Update March 2025 Chief Transformation Officer responsible for UNITE Divisional Group Executives accountable for customer, financial and risk outcomes Technology and Data supporting delivery CHIEF TRANSFORMATION OFFICE CONSUMER Initiatives: 25 BUSIN
Slide 13: UNITE Activity
12 Westpac Market Update March 2025 UNITE ACTIVITY 1 As at 27-Mar-25. 52% of initiatives PERCENTAGE COMPLETE BY STAGE1 • Understand change requirements • Technology architecture impacts • Delivery plans and cost estimates • Plan implementation • Complete testing • Migrate data • Enhance and simplify
Slide 14: UNITE: Initiatives Completed
MIDAS MIGRATION & DECOMMISSION ELECTRONIC IDENTITY VERIFICATION MORTGAGE MULTI-OFFSET CAPABILITY CONSOLIDATION OF ASIA WIB PLATFORMS 13 UNITE: INITIATIVES COMPLETED $8m OUTCOMES Westpac Market Update March 2025 ~$5mp.a. $20m ~$15mp.a. • Migrated WNZL FM platform to the WBC platform • Reduces cost an
Slide 15: UNITE: Initiatives – FY25 Focus
14 UNITE: INITIATIVES – FY25 FOCUS 1 This includes 4 initiatives, including mortgage offsets which has completed. 2 This includes 2 initiatives. 3 Subject to BT Funds Management Limited board approval. Westpac Market Update March 2025 MORTGAGE SIMPLIFICATION1 • Migrates mortgage customers to a singl
Slide 16: Scott Collary, Chief Information Officer
SCOTT COLLARY CHIEF INFORMATION OFFICER
Slide 17: UNITE: Merge Our Technology
16 1 The Forrester Digital Experience Review: Australian Mobile Banking Apps, Q3 2024. 2 Business lending platform Westpac Market Update March 2025 PRINCIPLES BUILTTO CHANGE EVERGREEN AUTOMATED DIGITALTO THE CORE • Generative AI capabilities operating in Financial Markets and Mortgage Operations • D
Slide 18: Technology Foundations Simplified
TECHNOLOGY FOUNDATIONS SIMPLIFIED 17 6 TO 4 Private & Public cloud Westpac Market Update March 2025 $18m p.a. cost reduction Greater resilience and faster to market 9 TO 1 Networks $50m p.a. cost reduction 10x bandwidth with full redundancy ONE Developer platform Engineer productivity boosted by ~25
Slide 19: UNITE: Merge Our Technology – Completed in FY24
COMPLETED IN FY24 UNITE: MERGE OUR TECHNOLOGY 18 Westpac Market Update March 2025 EXPERIENCE PRODUCTS & SERVICES PLATFORMS ENTERPRISE TECHNOLOGY FOUNDATIONS Developer platforms Networks Private & Public cloud Desktop platforms Workflow systems Collections systems Data platforms Customer onboarding C
Slide 20: Scaling AI to Accelerate Speed to Market
Expected forward benefits: Rapid speed to market of AI use cases Lower cost of AI use cases Exceptional customer and staff experiences Guardrails embedded for AI Safe and easy AI experimentation INTELLIGENT BANKING WITH AI Business user with idea and data ‘Bring Your Own’ data Self-serve patterns Bu
Slide 21: Anthony Miller, Chief Executive Officer
ANTHONY MILLER CHIEF EXECUTIVE OFFICER
Slide 22: Perform
PERFORM 21 Westpac Market Update March 2025 1 Relationship Strength Index. 2 Excludes Notable Items. The information on this page contains ‘forward-looking statements’ and statements of expectation reflecting Westpac’s current views on future events. They are subject to change without notice and cer
Slide 23: Consumer
| VT] CONSUMER
Slide 24: Consumer Priorities
CONSUMER PRIORITIES 23 Westpac Market Update March 2025 PERFORMANCE Grow market share in key segments Improve ROTE CUSTOMER Australia’s most advocated Consumer Bank Deeper customer relationships PEOPLE Simplify organisation with clear accountabilities TRANSFORMATION Simplify Consumer through UNITE O
Slide 25: UNITE Objectives: Simplifying Consumer – One Best Way
BEST CHANNEL Westpac Market Update March 2025 UNITE OBJECTIVES: SIMPLIFYING CONSUMER – ONE BEST WAY BEST PRODUCT CONSUMER 24 1 The Forrester Digital Experience Review: Australian Mobile Banking Apps, Q3 2024 BEST TECH BEST PROCESS ~80 systems decommissioned 2 to 1 banker chat 5 to 1 staff digital se
Slide 26: UNITE: Best Way Delivery Proof Point: Electronic Identity Verification
25 CONSOLIDATED 20 PROCESSES TO 1 Westpac Market Update March 2025 CONSUMER • Quicker and easier way to complete ID checks • Pass rate improved by >10% • Faster and easier to onboard and serve customers • More time for quality customer conversations • Initiative cost $20m • Estimated savings $15m p.
Slide 27: UNITE: One Best Channel – #1 Mobile Banking App for All Customers
Westpac Market Update March 2025 CONSUMER 1 The Forrester Digital Experience Review: Australian Mobile Banking Apps, Q3 2024 MONEY MANAGEMENT LOYALTY & REWARDS FRAUD & SCAMS Rewards Hub Generating greater value for customers Financial Wellbeing Personal finance tools SafeBlock Allowing customers to
Slide 28: UNITE: One Best Channel – Digital Banker, Staff Assisted Digital Portal
EXPECTED OUTCOMES 27 Westpac Market Update March 2025 CONSUMER 1 This includes 2 initiatives. SINGLE BANKER PLATFORM from 5 to 1 servicing platforms • One digital portal to view, service and originate all customer needs • Supporting 20,000 employees • Compliant by design processes • Initiative costs
Slide 29: Business & Wealth
| VT] BUSINESS & WEALTH
Slide 30: Business & Wealth Priorities
BUSINESS & WEALTH PRIORITIES 29 Westpac Market Update March 2025 PERFORMANCE Balance growth and return Improve market share CUSTOMER Customer at the heart of everything we do Improve experience through BizEdge, Digital Banker and Invoice Financing PEOPLE Recruit 350 additional business bankers Ampli
Slide 31: Growth Investment: BizEdge
Reduce banker loan processing time by ~50% Reduce TTD1 by ~60% Decommission Legacy systems and tools 27+ FAST, SIMPLE, DIGITAL LENDING ORIGINATION EXPERIENCE WITH A SINGLE VIEW OF CUSTOMER GROWTH INVESTMENT: BIZEDGE 30 Westpac Market Update March 2025 BUSINESS & WEALTH 1 Time to unconditional lendin
Slide 32: Business & Wealth Expected Outcomes
EXPECTED OUTCOMES 31 BETTER DIGITAL EXPERIENCES SIMPLIFY TECHNOLOGY Westpac Market Update March 2025 UNITE OBJECTIVES BUSINESS & WEALTH Product processors reduced 10 to 6 Banker platforms consolidated >10 to 3 Online banking platforms consolidated 4 to 2 Cost of change reduced by 1.7x to ~1x Reducti
Slide 33: UNITE: One Private Bank
UNITE: ONE PRIVATE BANK 32 3 BRANDS TO 1 DISTINCTIVE BRAND Westpac Market Update March 2025 BUSINESS & WEALTH 1 Based on balances. Expected to be completed in FY25. 85% OF CUSTOMER TRANSITIONS COMPLETED1 SIMPLIFIED BUSINESS MODEL EXPECTED OUTCOMES • Processes and systems reduced by ~50% • High staff
Slide 34: UNITE: One Wealth Platform
UNITE: ONE WEALTH PLATFORM 33 Westpac Market Update March 2025 BUSINESS & WEALTH 1 Subject to BT Funds Management Limited Board approval. ONE CONTEMPORARY WEALTH PLATFORM MIGRATE CUSTOMERS FROM ASGARD TO PANORAMA BY FY261 STREAMLINED ADVISER AND CUSTOMER EXPERIENCE EXPECTED OUTCOMES • Simplified ope
Slide 35: WIB
WIB
Slide 36: WIB Priorities
WIB PRIORITIES Westpac Market Update March 2025 WIB PERFORMANCE Maintain ROTE Grow market share in core products & segments CUSTOMER Deepen customer relationships, RSI #1 Deliver market leading digital experience PEOPLE Maintain top quartile engagement Employer of choice RISK Complete CORE transitio
Slide 37: WIB Expected Outcomes
EXPECTED OUTCOMES ENHANCED CUSTOMER & BANKER EXPERIENCE IMPROVE DIGITAL & DATA CAPABILITIES SIMPLIFY & CONSOLIDATE TECHNOLOGY Westpac Market Update March 2025 UNITE OBJECTIVES WIB Deal routing and post-trade systems consolidated 8 to 2 Trade finance systems merged 2 to 1 Trade data integration inter
Slide 38: Growth Investment: Westpac One
Liquidity and Cash Management Domestic and International Payments Transaction and Investment Accounts GROWTH INVESTMENT: WESTPAC ONE MODULAR CAPABILITIES Investment Cost c.$400m FX Trade Treasury Loans Receivables Insights Onboarding & Servicing Dec 2025 Dec 2026 Dec 2027 37 Westpac Market Update Ma
Slide 39: Investment: Payments
EXPECTED OUTCOMES INVESTMENT: PAYMENTS Reduced cost to run and change technology Customer advocacy UNITE enablement Balance sheet growth • Simplification & modernisation of payments ecosystem: Domestic and International payments consolidated from 4 to 2 • Planned completion: Dec-28 • Investment cost
Slide 40: Technology - UNITE
| ws | TECHNOLOGY- UNITE
Slide 41: UNITE: Technology Discovery Phase Refinements
DISCOVERY Governance Sequencing Resourcing End-to-end capabilities centralised across Business, Tech & Data Focused delivery on core merge & simplify initiatives Ensuring adequate resourcing and capability in place REFINED INTEGRATED ROADMAP AND PLAN 40 Westpac Market Update March 2025 UNITE: TECHNO
Slide 42: UNITE: Discovery Example – 3 to 1 Deposit Processor
RE-EVALUATION OF 3 TO 2 DEPOSIT PROCESSORS IMPROVEMENTS SINGLE DEPOSIT PROCESSOR Moved to a data migration-led approach Used one best way single view of customer Decommission an additional legacy system Focused on customer journey Reduced delivery risk Enhanced banker experience Reduced cost of chan
Slide 43: UNITE Approach Significantly Reduced Risk
UNITE APPROACH 42 SIGNIFICANTLY REDUCED RISK THROUGH FOCUSING ON MERGE AND SIMPLIFY TECHNOLOGY 82% 17% 1% UNITE SPEND BY ACTIVITY Merge Simplify Modernise MERGE SIMPLIFY • One deposit processor • One private bank • One wealth platform • One customer master file • One digital banker system • Remove i
Slide 44: UNITE: Consolidated Identity Verification Processes
UNITE: CONSOLIDATED 20 IDENTITY VERIFICATION PROCESSES TO 1 43 Westpac Market Update March 2025 TECHNOLOGY FY23 FY24 1Q25 DISCOVERY • 20 different verification processes used in Consumer • Inconsistent customer experience • New KYC requirements drove multiple changes • $5.2m spent on compliance chan
Slide 45: Investor Relations Team – Contact Us
INVESTOR RELATIONS TEAM – CONTACT US INVESTOR RELATIONS CONTACT SHARE REGISTRY CONTACT For all shareholding enquiries relating to: • Address details and communication preferences • Updating bank account details, and participation in the dividend reinvestment plan For all matters relating to Westpac’
Slide 46: Disclaimer
DISCLAIMER 45 Westpac Market Update March 2025 The material contained in this presentation is general and is supplied in summary form and is therefore not necessarily complete. It is not intended that it be relied upon as advice to investors or potential investors, who should consider seeking indepe