Westpac is preparing to move selected business customers from its St George, BankSA, and Bank of Melbourne brands onto the core Westpac franchise, in the first tangible step of a major technology and brand simplification push, Australian Financial Review reported.
Internal documents show the bank plans to launch a pilot migration of about 200 commercial customers from the three regional brands later this month under “Project Aries”, ahead of a broader shift of clients to Westpac’s main brand.
“The customer migration to the new brand will be slow and steady, with a strong focus on minimising disruption for our employees and customers,” one document circulated for consultation states. “To acknowledge the shift in focus during migration … staff targets will be temporarily reduced. Focus shifts from customer acquisition to customer retention.”
The move is closely linked to Westpac’s wider “Project Unite” overhaul of its ageing technology stack. St George, acquired in 2008, still runs on separate systems, contributing to the “complicated web of technology platforms” the bank is now trying to simplify.
The development comes on the back of a solid first quarter, with Westpac reporting stronger digital sales, business lending growth, and progress on its UNITE and BizEdge transformation programs.
An internal presentation cited by the bank says a pilot migration has “highlighted that customer loyalty is driven less by attachment to a brand and more by trust in the service provided by their banker”.
To manage the transition, Westpac has created a “migration excellence team” and is targeting retention of at least 95% of the business lending books attached to St George, BankSA, and Bank of Melbourne, which collectively account for roughly a fifth of the group’s business deposits and nearly a third of business lending.
A spokesman said: “Our brands remain an important part of our customer offering. To improve our services and make our processes more efficient, we’re focused on delivering our Unite program.”
Westpac has told investors Unite will cost between $850 million and $950 million this financial year, above market expectations, as consultants from Accenture help re‑platform and streamline processes.
The strategy unfolds as the major banks battle for more profitable business lending. Westpac holds 16.7% of the market, behind NAB and CBA, and has flagged the hire of 350 bankers to help win share – meaning Project Aries must deliver technology savings without alienating loyal regional‑brand customers, AFR reported.
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