Attaining a net promoter score ranking of number one by 2029 in both consumer banking and business banking is the declared aim of new Westpac CEO Anthony Miller. This is from third in both categories currently among major banks.
In a market update on Friday Miller walked investment analysts through his priorities as CEO and, alongside his CTO and CIO, shared insights on the progress of the bank’s mammoth, year-old technology simplification project, UNITE.
“Our priority is to win the whole customer relationship” Miller said.
“We must reduce complexity. UNITE will make work easier for our people.”
Westpac, Miller said, is “not where we want to to be today. As this stands, we are limited by our technology challenge, and too many processes and systems.
“This is a drag on our ability to serve our customers, compete and deliver the right return to our shareholders. As a result we don’t capture the benefits our 21 per cent market share.
“UNITE will deliver this scale advantage for the group.
“If we get that right, performance will follow.
“We measure our performance on market position and return on tangible equity. We will grow, but grow in a way that delivers the right return to shareholders.”
In mortgages, Miller said Westpac was targeting growth in line with system.
“However, growth won’t be pursued at the expense of returns.”
He also clarified that the bank will prioritise a “focus on increasing the proportion of first party mortgages” and thus dialling back its dependency on brokers.
Miller framed this year’s projected $600 million investment in UNITE in the context of the bank’s longstanding struggles with costs.
“Westpac’s costs base has been a persistent issue and we must structurally lower costs within the company’ Miller said.
“The simplification of processes, products and technology through UNITE is critical to achieving this.”
But Miller dashed hopes of quick wins emerging from all the outlays on UNITE.
His presentation showed benefits realised are lower than costs so far, pretty much across the board.
The UNITE project is consuming around 35 per cent to 40 per cent of the bank’s investment spend of more than $2 billion annually, with the bulk of that still allocated to regulatory and compliance.
Reversing one piece of cost cutting, Westpac will relaunch its business academy for bankers.