Westpac technology simplification update

ASX Release


27 March 2024

Westpac technology simplification update

Westpac Banking Corporation (“Westpac”) today provides the attached Westpac
technology simplification update.









For further information:

Hayden Cooper Justin McCarthy
Group Head of Media Relations General Manager, Investor Relations
0402 393 619 0422 800 321


This document has been authorised for release by Tim Hartin, Company Secretary.



Level 18, 275 Kent Street
Sydney, NSW, 2000

27 MARCH 2024
WESTPAC
TECHNOLOGY
SIMPLIFICATION
UPDATE
WESTPAC BANKING CORPORATION ABN 33 007 457 141

PETER KING
Chief Executive Officer

Improved
employee experience
Increased
shareholder return
Better
customer experience
UNITE:
ACCELERATING
SIMPLIFICATION
3
Westpac Group March 2024 Technology Simplification Update
These objectives are ‘forward-looking statements’ and are subject to assumptions, risks and other important information in the Disclaimer on page 18.
Business led. Technology enabled.
Objectives

A STRATEGY FOR GROWTH AND RETURN
4
Westpac Group March 2024 Technology Simplification Update
PILLARS
Customer
care at
the heart
Easy
to do
business with
Expert
solutions
and tools
Advocate
for positive
change
FOUNDATIONS
Strong
balance
sheet
Proactive risk
management and
risk culture
Data-informed
insights and
decisioning
Passionate
people who
make a difference
MEASURES
Return on tangible equityMarket position
To be our customers’ #1 bank and partner through life
AMBITION
Creating better futures together
OUR PURPOSE

READY TO ACCELERATE
5
Westpac Group March 2024 Technology Simplification Update
1 BT Personal and Corporate Super, Advance Asset Management, General Insurance, Australian Life Insurance, Lenders Mortgage Insurance, Motor Vehicle Dealer Finance and Novated Leasing,
Strategic Alliances ‘Vendor Finance’, New Zealand Life Insurance, New Zealand Wealth Advisory, BT Private Portfolio Management. 2 The Forrester Digital Experience Review: Australian Mobile
Banking Apps, Q4 2023.
PORTFOLIO SIMPLIFICATION COMPLETECORE PROGRAM WELL PROGRESSED
TECHNOLOGY SIMPLIFICATION UNDERWAY
Technology
foundations
simple and
modern
Focused on banking in
Australia & New Zealand
10 businesses exited
1

#1 Mobile
Banking App
2
EFTPOS Air for
business
customers
AI-powered
Westpac SaferPay
to stop scams
Integrated plan
activities complete
Embedding risk
management practices

UNITE OBJECTIVES
6
Westpac Group March 2024 Technology Simplification Update
These objectives are ‘forward-looking statements’ and are subject to assumptions, risks and other important information in the Disclaimer on page 18.
•Simplified customer journeys
•End to end digital experiences
•Faster to market
•More time with customers
•Better insights
•Enables innovation
•Operating cost efficiency
•Reduced cost of change
•Improved risk
BETTER
CUSTOMER
EXPERIENCE
IMPROVED
EMPLOYEE
EXPERIENCE
INCREASED
SHAREHOLDER
RETURN

SCOTT
COLLARY
Chief Information Officer

BUILDING CUSTOMER-CENTRED TECHNOLOGY
8
Westpac Group March 2024 Technology Simplification Update
This page contains ‘forward looking statements’. Please refer to the disclaimer on page 18.
1 The Forrester Digital Experience Review: Australian Mobile Banking Apps, Q4 2023.
Built to changeEvergreenAutomatedDigital to the core
Achieved top
decile productivity
for engineers
Best engineers
& infrastructure
#1
mobile
banking
app
1
World class
experiences &
platforms
100%
data platform
on cloud available
Intelligent
banking with
AI & data
Westpac
SaferPay
Protecting
our
customers
9 to 1
networks
consolidated
Simplifying &
modernising our
technology

WESTPAC SaferPay: PROTECTING AUSTRALIANS FROM SCAMS
Potential scam
identified using AI
Suspicious transaction
blocked
Transaction checked
with customer
9
Westpac Group March 2024 Technology Simplification Update

Division Capabilities20212022202320242025202620272028+
Technology
Infrastructure
Cloud Platforms and Services
Software Engineering
Data Platforms
WIB
Financial Markets
Corporate Cash Management
Payments
Business &
Wealth
Business Banking
Wealth (Asgard migration)
Consumer
Digital Experience
Cash & Transactional Banking
Credit Card & Personal Lending
Mortgage Originations
Lending Processors
Customer &
Corporate
Services
Collections
Process Management/Automation
ENTERPRISE TECHNOLOGY ROADMAP
10
Westpac Group March 2024 Technology Simplification Update
KEY:Preparation
Simplification and modernisation
Target state
(Built for change, Evergreen, Automated, Digital to the core)
This page contains ‘forward looking statements’. Please refer to the disclaimer on page 18.

UNITE: ACCELERATING SIMPLIFICATION
1
11
Westpac Group March 2024 Technology Simplification Update
This page contains ‘forward looking statements’. Please refer to the disclaimer on page 18.
1 Refers to Australian banking system simplification. 2 Forecast reductions which will be confirmed in detailed planning through FY24.
EXPERIENCE
PRODUCTS & SERVICES
PLATFORMS
ENTERPRISE
TECHNOLOGY
FOUNDATIONS
Developer
platforms
Networks
Private &
Public cloud
Desktop
platforms
Collections systemsWorkflow systems
Data
platforms
Customer
onboarding
systems
Customer
masters
Payment
captures
Product processorsProduct originations
Banker platforms to assist
customers
Online
customer platforms
From
>180
>10
>60
>60
>20
>20
<5
<30
<20
<10
<10
To
<60
FY24 – FY28
2

Banker platforms
to assist customers
Customer
onboarding systems
Collections
systems
UNITE IN PRACTICE: MAKING IT SIMPLE
1
12
Westpac Group March 2024 Technology Simplification Update
This page contains ‘forward looking statements’. Please refer to the disclaimer on page 18.
1 Forecast reductions which will be confirmed in detailed planning through FY24.
6From3To
•Improved customer experience
•Easier for employees
•Increased banker productivity
11From1To
•Seamless verification experience
for retail customers
•Safer and faster digital process
7From1To
•Better customer experience and
faster response time
•Improved operational efficiency
•Strengthened compliance and
risk position

UNITE PLAN
1
13
Westpac Group March 2024 Technology Simplification Update
This page contains ‘forward looking statements’. Please refer to the disclaimer on page 18.
1 Plan will be confirmed in detailed planning through FY24.
Business ownership and
accountability
Business, technology and
data teams aligned to
deliver
Coordinated centrally for
efficiency and control
c.85 sequenced individual initiatives
Simplify existing processes. Reduce technology complexity. Decommission of duplicated systems
FY24FY25FY26FY27FY28
CUMULATIVE INITIATIVES COMPLETION TIMELINE

KEY UNITE INITIATIVES COMMENCED IN FY24
14
Westpac Group March 2024 Technology Simplification Update
Initiative
• Customer masters from 3 to 1
• API enabled
• One common solution for Australian customers
Australian customer masters
consolidated
• Consolidating from 22 retail electronic identity verification processes to 1
• Biometric enablement of the eIDV process
Electronic identity verification
• Integration and migration of 2 Asian platforms to Australia
• Elimination of system duplication
• Leverage Group capability for offshore customers
Consolidation of Asia WIB
platforms
• 7 to 1 systems
• Starting with Australian consumer finance and mortgages
Consolidating Australian
collections platforms
• Elimination of system duplication
• Consistent adviser and customer experience
Asgard migration
Outcomes
This page contains ‘forward looking statements’. Please refer to the disclaimer on page 18.

MICHAEL
ROWLAND
Chief Financial Officer

AVERAGE ANNUAL TOTAL INVESTMENT SPEND ($BN)
1.2
1.8 ~1.8
~2
FY14-FY18FY19-FY23FY24FY25-FY28
ANNUAL INVESTMENT SPEND
16
Westpac Group March 2024 Technology Simplification Update
This page contains ‘forward looking statements’. Please refer to the disclaimer on page 18.
1 Based on forecast total investment spend. 2 Peer average includes ANZ, CBA and NAB. Cost to income ratio is calculated on cash earning basis. For Westpac for FY23 this is statutory net profit
adjusted for economic hedges and ineffective hedges.
•UNITE incorporated within total annual investment
spend
•Total investment spend expected to be:
−~$1.8bn in FY24
1
−~$2bn annually from FY25 to FY28
1
•UNITE
−~30% of total spend over FY24 to FY28
−Significant proportion expensed
•UNITE a major driver to close the cost to income
ratio gap to peers
−Run cost efficiency benefits
−Reduction in the cost of change
1
COST TO INCOME RATIO (%)
2
40
45
50
55
60
65
FY13FY18FY21FY23
WestpacPeer average

SHARE REGISTRY CONTACT INVESTOR RELATIONS CONTACT
INVESTOR RELATIONS TEAM
17
Westpac Group March 2024 Technology Simplification Update
Justin McCarthy
General Manager, Investor Relations
Arthur Petratos
Manager, Shareholder Services
Rebecca Plackett
Head of Corporate Reporting and ESG
Jacqueline Boddy
Head of Debt Investor Relations
James Wibberley
Manager, Investor Relations
Catherine Garcia
Head of Investor Relations,
Institutional
For all shareholding enquiries relating to:
–Address details and communication preferences
–Updating bank account details, and participation in the
dividend reinvestment plan
For all matters relating to Westpac’s strategy,
performance and results
1800 804 255
westpac@linkmarketservices.com.au
investorcentre.linkmarketservices.com.au
+61 2 9178 2977
investorrelations@westpac.com.au
westpac.com.au/investorcentre
Contact us

DISCLAIMER
18
Westpac Group March 2024 Technology Simplification Update
The material contained in this presentation is general and is supplied in summary form and is therefore not necessarily complete. It is not intended that it be relied upon as
advice to investors or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial
situation or particular needs. The material contained in this presentation may include information derived from publicly available sources that have not been independently
verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information.
All amounts are in Australian dollars unless otherwise indicated.
This presentation contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the US Securities Exchange Act of 1934. Forward-
looking statements are statements that are not historical facts. Forward-looking statements appear in a number of places in this presentation and include statements
regarding our intent, belief or current expectations with respect to our technology simplification program.
We use words such as ‘will’, ‘may’, ‘expect’, ‘intend’, ‘seek’, ‘would’, ‘should’, ‘could’, ‘continue’, ‘plan’, ‘estimate’, ‘anticipate’, ‘believe’, ‘probability’, ‘indicative’, ‘risk’, ‘aim’, ‘outlook’,
‘forecast’, ‘f’cast’, ‘f’, ‘assumption’, ‘projection’, ‘target’, ‘goal’, ‘guidance’, ‘ambition’, or other similar words to identify forward-looking statements, or otherwise identify forward-
looking statements. These forward-looking statements reflect our current views on future events and are subject to change, certain known and unknown risks, uncertainties
and assumptions and other factors which are, in many instances, beyond our control (and the control of our officers, employees, agents and advisors), and have been made
based on management’s expectations or beliefs concerning future developments and their potential effect upon us.
Any future benefits or objectives of the UNITE program described in this presentation are subject to a number of assumptions, including that the technology simplification will
result in a better customer experience, reduced costs, reduced costs of change and lower risks with all other things being equal. Those benefits or objectives may also not arise
or be met until after a period of investment and may not occur in a linear manner. Information in this presentation as to the timing of the UNITE program is subject to ongoing
testing and validation as the program progresses. The future timing and costs of the UNITE program may also be adversely impacted by a variety of matters, both in and
outside of our control, including, without limitation, mandatory regulatory change.
Forward-looking statements may also be made, verbally or in writing, by members of Westpac’s management or Board in connection with this presentation. Such statements
are subject to the same limitations, uncertainties, assumptions and disclaimers set out in this presentation. There can be no assurance that future developments or
performance will align with our expectations or that the effect of future developments on us will be those anticipated. Actual results could differ materially from those we
expect or which are expressed or implied in forward-looking statements, depending on various factors including, but not limited to, those described in the section titled ‘Risk
factors' in our 2023 Annual Report available at www.westpac.com.au. When relying on forward-looking statements to make decisions with respect to us, investors and others
should carefully consider such factors and other uncertainties and events. Except as required by law, we assume no obligation to revise or update any forward-looking
statements contained in this presentation, whether from new information, future events, conditions or otherwise, after the date of this presentation.