The infrastructure of Westpac and its four banking brands is being integrated so that consumers can use branches interchangeably.
The multibrand architecture “opens the [branch] network to all consumers across all brands,” including Bank of Melbourne, St. George Bank, and Bank of SA, according to Westpac CEO Peter King in a market update provided today.
This includes all counter activities, such as checks, coin counting, and deposits and withdrawals, all of which, according to him, “are extremely vital for small company customers.”
The modifications will start to take effect in early 2023.
As a result of the bank’s investment in digital infrastructure, according to King, many branches can be housed under one roof in branch colocation, which “improves the economics of our network while retaining access for our customers.”
Currently, there are 21 colocated branches in operation, and according to him, “we’re reviewing potential for over 100 more.”
According to King, colocation currently requires several computer systems at the branch, but by the beginning of next year, just one system will be needed.
The multibrand infrastructure is a component of Westpac’s long-term cost-cutting strategy, which was first unveiled in May 2021 and aims to save $8 billion.
According to King, the multibranch architecture and colocation would primarily result in real estate cost savings, with Westpac hoping to keep as many employees on board as feasible.
We wanted to get the customer experience in digital and create a single procedure for customers, he said. “What we talked about today is about the digital frontend.”
For the time being, he noted, some ledger operations between Westpac and St. George will continue to use distinct systems.
“In reality, the ledgers are only conducting the counting. We will collapse those ledgers later on since that is a lot lesser priority for us, King said.
