Australian bank Westpac is set to invest billions of dollars over the next four years to streamline its technology infrastructure. The bank plans to allocate 30% of its annual budget, estimated to be between A$1.8 billion and A$2 billion, toward this technological upgrade.
This initiative is part of Project Unite, which encompasses 85 individual tech projects aimed at reversing a decade of underinvestment. The primary goal is to reduce system duplication, cutting the number of systems from 180 down to 60.
Westpac’s chief executive, Peter King, has noted, “We have more technology than we need,” highlighting the necessity of this transformation. He also mentioned the optimal timing for the upgrade, following the completion of the sale of non-core businesses and a comprehensive risk management enhancement.
While Westpac has been engaged in a technology simplification program for several years, the latest announcement signifies a considerable acceleration of these efforts. Chief Information Officer Scott Collary indicated that several initiatives have already been achieved, including the consolidation of customer onboarding systems and communication networks.
In 2024, the bank’s main focus will be on “improving customer outcomes” and simplifying processes for employees, rather than replacing core banking systems. As Collary stated, “Core systems are not big drivers of these issues. The core will be addressed at the end of this.”