Westpac has consolidated the number of initiatives in its Unite “technology simplification” program from 85 to 61, with 39 now underway – about three times more than in May.
The bank is using Unite to essentially “consolidate down to our best processes,” outgoing CEO Peter King told its full-year results.
He cited identity verification as just one aspect of technology systems to be consolidated under Unite.
The bank wants to reuse the identity verification system built for its mortgage business across its operations, consolidating “22 other verification processes to one”.
“So far, we’ve consolidated 18 consumer processes, and this is a good example of the Unite outcomes that will deliver a better experience for customers, employees and shareholders,” King said.
“For customers, it means a fast and easy digital verification process, and we have already seen an improvement in the success rate for new-to-bank customers using the process.
“For employees, it means spending more time with customers, and for shareholders, this initiative is expected to cost $25 million and expected to provide ongoing savings of $15 million per annum, as well as achieving compliance with the Australian Banking Association scam-safe accord commitments.”
In total, there are 39 initiatives now underway, and that is expected to grow to “circa 50” in 2025.
Westpac worked to cut the total number of initiatives under Unite “to improve delivery sequencing.”
King said there had also been one change to the program’s scope” in the second half of the bank’s financial year, a “decision to consolidate three deposit systems to one, rather than the previously advised two.”
“We’re confident that one deposit system will be able to cope with the volume of data, and one system will reduce complexity and lower the project costs,” King said.
Westpac spent “approximately $150 million in 2024” on Unite, but this was a year largely spent on “planning, ramping up resourcing and commencing the first phase of projects.”
“We expect Unite to account for 35 to 40 percent of our estimated $2 billion annual group investment envelope over 2025 to 2028,” King said.
King noted that Unite should not be considered as the bank “starting from scratch” on technology systems or simplification.
“It’s about accelerating the level and pace of simplification through a program of coordinated initiatives,” he said.
King – who is handing the CEO reins to Anthony Miller – deflected questions from financial analysts on 2025 milestones for Unite, saying that Miller would address that once he’d had some time in the CEO role.
Outside of Unite, Westpac’s technology expenses rose nine percent across FY24.
“Higher technology operating expenses saw total technology expenses rise by nine percent due to higher software licensing, data and storage costs, and vendor inflation,” chief financial officer Michael Rowland said.
The bank did not specifically break out its IT costs as a dollar amount.
Rowland said these “headwinds” were partially offset by savings delivered through automation.
Westpac posted a net profit after tax of $7 billion, down three percent on the previous financial year.