Westpac is reorganising its technology services within the larger banking organisation, creating a new business overseen by Scott Collar.
It’s the bank’s second shift in internal IT orientation in less than two years; Collary, a former ANZ CIO, was brought in to lead its operations and technology departments in July 2020.
The bank announced today that its new restructuring will “enhance end-to-end responsibility for customer goods and services” and “entails shifting support functions such as HR, finance, and technology to the companies and consumers they serve.”
“Today, we announced the next step of organisational changes that build on our line-of-business approach and assist in achieving head office reorganisation,” CEO Peter King said in a statement to analysts.
“Our line-of-business operating model, first introduced in 2020, has developed companies responsible for our primary customer offers such as mortgages, and the concept is meant to provide end-to-end accountability, assist speed up decision-making, and push decision-making closer to the client.”
“Today’s adjustments expand on this paradigm by bringing additional support services, such as finance and IT, closer to the company, resulting in a smaller and more focused head office.”
“According to an org chart supplied by the bank, there are two divisions inside a “shared services” category.
One of these divisions, dubbed ‘Customer Services & Technology,’ will incorporate technology.
“Customer Services & Technology will be responsible for tasks that serve our customers and benefit from scales, such as operations, remediation, complaints, and technology,” Westpac stated in a financial statement.
“As group executive, Customer Services & Technology, Scott Collary, currently a chief operating officer, will manage this division.”
Westpac stated the reform will result in “a smaller, more focused head office” as part of a three-year effort to decrease the bank’s cost base to $8 billion by 2024.
This entailed team member reductions, with Westpac claiming to be “cutting the size of corporate operations by roughly 20%.”
“The reforms have already begun, with a decrease in the staff of almost 1100 during the most recent quarter,” Westpac added.
“The cuts comprise a combination of third-party contractors and personnel.”
According to financial experts, contractors accounted for 900 of the 1100 layoffs announced by King last quarter. It was unclear how many of the layoffs directly impacted Westpac’s IT operations
