Business Spotlight Pack

ASX Release


26 September 2024

Westpac Business Spotlight

Westpac Banking Corporation (“Westpac”) today provides the attached Business
Spotlight Pack which includes information relating to:
• Mortgages – from application to settlement;
• Business Lending;
• Cyber and Scams; and
• Artificial Intelligence.










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

BUSINESS
SPOTLIGHT
Westpac Banking Corporation ABN 33 007 457 141
26 SEPTEMBER 2024

MORTGAGES –
FROM APPLICATION
TO SETTLEMENT
Damien MacRae, Managing Director Mortgages
Bhaskar Katta, General Manager Group Operations
Peta Brown, Head of Operations, Mortgages

7.1
7.0
6.9
7.0
6.4
5.0
5.1
5.3
5.6
4.9
5.0
4.7
Aug-23Sep-23Oct-23Nov-23Dec-23Jan-24Feb-24Mar-24Apr-24May-24Jun-24Jul-24Aug-24
12.1
-61%
80
82
82
83
Jan-24
85
85
8686
87
Aug-23Sep-23Oct-23Nov-23Dec-23Feb-24Mar-24Apr-24May-24Jun-24
86
Jul-24Aug-24
79
83
80
+9%
2
8
9
19
31
43
44
56
Sep-22Dec-22Mar-23Jun-23Sep-23Dec-23Mar-24Jun-24
+54
MORTGAGES: SERVICE EXCELLENCE HAS IMPROVED CUSTOMER EXPERIENCE
1 Time to decision median days for Third Party mortgages. 1 Time to decision median days for First Party mortgages. 3 On day settlement percentage of total purchase settlements. 4 Internal Broker NPS Quarterly
Pulse Survey Jun24 (Westpac Brand).
BROKER TTD
(DAYS)
1
TOTAL
ODS (%)
3
BROKER NPS
4
Westpac Business Spotlight September 2024
3
Sustainably c.5 days
2
from Aug-23 to Aug-24
1ST PARTY TTD

BUSINESS
LENDING
Tamara Bryden, MD Business Lending
Ross McNaughton, CRO Business & Wealth

60
67
71
77
15
14
15
16
3
4
4
4
1
1
1
1
80
86
90
97
Sep-21Sep-22Sep-23Jun-24
CommercialSME
Small businessPrivate wealth
+7.1%
56
60
61
64
23
27
29
32
80
86
90
97
Sep-21Sep-22Sep-23Jun-24
1st Party3rd Party
SOLID BUSINESS LENDING GROWTH, MARKET SHARE STABILISED
BALANCES BY SEGMENT
1
($B)BALANCES BY CHANNEL ($B)
5Westpac Business Spotlight September 2024
14
15
16
17
18
Jul-21Jul-22Jul-23Jul-24
MARKET SHARE
2
1 Segmentation is based on the amount of Total Committed Exposure (TCE) – Commercial TCE > $3m and < $100m, SME TCE >$0.5m and < $3m; and Small business TCE < $0.5m. There are exceptions for certain industries and specific
customer. 2 Business Lending ADI System market share from APRA Monthly Authorised Deposit-taking Institution Statistics.

0.0
2.0
4.0
6.0
8.0
10.0
Accommodation,
cafes &
restaurants
Accounting,
legal &
professional
services
Agriculture,
forestry
& fishing
Business
services
ConstructionEducationFinance &
insurance
Health &
community
services
ManufacturingPropertyProperty
services
Retail
trade
Transport
& storage
Wholesale
trade
Sep-23Mar-24Jun-24
Sector:
Accommodation,
cafes and
restaurants
Accounting,
legal &
professional
services
Agriculture,
forestry &
fishing
Business
servicesConstructionEducation
Finance &
insurance
Health &
community
servicesManufacturingProperty
Property
servicesRetail trade
Transport &
storage
Wholesale
trade
TCE ($b)
Jun-24
8.03.715.25.49.83.12.54.37.838.23.66.75.16.3
Mar-24
7.93.614.45.29.43.02.54.27.837.73.56.54.86.2
6Westpac Business Spotlight September 2024
BUSINESS & WEALTH CREDIT QUALITY REMAINS RESILIENT
STRESSED EXPOSURES BY INDUSTRY SECTOR (% OF TCE)
Drivers of the observed increase in stress:
•Higher for longer interest rates and inflation is impacting certain SME businesses
•Retail trade and hospitality sector customers have been adversely impacted by low growth in discretionary spending from cost of living pressures on households
•Wholesale trade and manufacturing sector customers continue to experience adverse impacts from inflation and supply chain constraints
EXPOSURE BY SECTOR

Simplifying our products, policies and processes
Harnessing the power of technology and generative AI to drive
productivity and efficiencies
Automating workflow and increasing straight through processing
to drive efficiencies
Tilting our portfolio to higher return segments
UNITE is our technology simplification program. It is business led
and tech enabled with three objectives: better customer experience;
improved employee experience; and increased shareholder return
7Westpac Business Spotlight September 2024
TRANSFORMATION PROGRAM IS RUNNING AT PACE
WHAT WE ARE DOINGAMBITION OVER THE MEDIUM TERM
1
Increase NPS to reflect that we are the first choice for customers
Improve return on tangible equity delivering value to our
shareholders
Single platform for lending providing a better experience
for customers
Improve Time to decision to respond to customer needs
10 minutes for digital deals
Same day for simple deals
2
3 days for complex deals
3
1 This ambition contains ‘forward-looking statements’ and are subject to assumptions, risks and other important information in the Disclaimer on page 24. 2 Credit auto-decision or conditional loan offer. 3 Banker and credit expertise pathway
requiring full credit assessment.

CYBER
AND SCAMS
Richard Johnson, Group Chief Information Security Officer
Ben Young, Head of Fraud Prevention

EXTERNALLY-PERCEIVED INCREASE IN THREATTRENDS IN SIGNIFICANT INCIDENTS
Collateral Damage from 3rd party
incidents
Increased volumes of successful attacks on
companies sees business disruption impacts flow
through supply chains.
Targeted ransomware
The last few years have seen a significant increase in
criminal groups using advanced techniques for
extortion, combining business disruption and
reputational risk.
Espionage & critical infrastructure attacks
Nation state attacks, either to acquire data or
establish persistent access, increasingly affect
private sector.
0%
200%
400%
600%
800%
1000%
Apr-15Apr-16Apr-17Apr-18Apr-19Apr-20Apr-21Apr-22Apr-23Apr-24
GLOBAL THREAT ENVIRONMENT CONTINUES TO ESCALATE
9
Source: New York University, Index of Cyber
Security. Index values have been normalised
to their baseline, 2015 values.
Nation States 1
Criminals2
Insider Threat3
Activist/Hacktivist4
Strategic Rivals5
Westpac Business Spotlight September 2024

Australian Industry (Peer Banks)
•Interbank Forum – Cybercrime
•Interbank Forum – Security Testing
•Interbank Forum – Application Security
•Banking, telco peer discussions
•CISO Lens
1
International Industry (Peers)
•Financial Services Information Sharing and Analysis Center
(FS-ISAC)
•Information Security Forum (ISF)
•New Zealand Internet Task Force
Australian Government & Law Enforcement Agencies
(LEAs)
•Australian Cyber Defence’s Australian Cyber Security Centre,
including Joint Cyber Security Centres andNational Information
Exchange
•Department of Home Affairs Cyber and Infrastructure Security
Centre &Trusted Information Sharing Network (TISN)
•Australian Security Intelligence Organisation
•LEAs across state and federal police
International Government, Regulators and LEAs
•New Zealand Financial Services Information Exchange
•UK National Cyber Security Centre (GCHQ NCSC)
•Monetary Authority of Singapore (MAS)
•US Federal Bureau of Investigation (FBI), Secret Service
COLLABORATION ACROSS INDUSTRY AND GOVERNMENT
10Westpac Business Spotlight September 2024
1 Information sharing and analysis community for cyber security executives - https://www.cisolens.com/
.

Monitoring, Threat Intelligence & Peer Networks
System Security
Data
For employees, we have controls around who we hire;
how their access is granted; and monitoring of system
use.
We operate dedicated controls to protect customers
from fraud, including multi-factor authentication for
sensitive transactions.
Core security capabilities are operated by our security
team, and protect all systems, e.g., malware
prevention.
Our security and application teams work together on
the security of our systems, e.g., through design
reviews, patching and secure development.
We monitor our systems for indications of attacks
and control weaknesses. We support this with cyber
threat intelligence and information sharing
partnerships.
Suppliers are subject to security reviews, limited
access to our systems and data, and ongoing
performance monitoring.
Distributed security represents security embedded in
technology services, e.g., firewalls in our networks and
access reviews.
WESTPAC: A LAYERED DEFENCE
1
1 No system can be 100% effective, systems are susceptible to human error and significant third-party risks. Cyber threats are continually evolving. Information should be read in conjunction with the 2023 Annual Report pages 27 and 47.
11Westpac Business Spotlight September 2024

30,000,000
events per day
(700 TPS)
WESTPAC
PRM
1
Westpac
Website
Branches
Telephone
Banking
Internet
Banking
ATMs
OTHER FINANCIAL INSTITUTIONS
TRANSACTION ACCOUNTS
WBC
Credit/Debit
Cards
WBC
Merchants
OFI CREDIT/ DEBIT CARDS
Cash
OTTs
Pay Anyones
RTGS
OTTs
Bpays
Direct Debits
Bpays
Pay Anyones
RTGS
OTTs
Cash
Purchases
Pay Anyones
Purchases
Applications
ALERTS
OFI MERCHANTS
FRAUD SYSTEM FLOWS
Westpac Business Spotlight September 202412
1 Proactive Risk Manager.

Westpac Business Spotlight September 2024
SAMPLE OF WESTPAC FRAUD AND SCAM DETECTION TECHNIQUES
13
Machine Learning Models
Artificial intelligence
Profiling
Sequence of Events
Blacklists
•Internal
•External (eg AFCX / Equifax)
Coincidence
•Closed Loops
•Convergence
•Velocity

Westpac Business Spotlight September 202414
PREVENTION MEASURES DRIVING DOWN CUSTOMER LOSSES
Jan-23
Feb-23Mar-23Apr-23May-23Jun-23Jul-23Aug-23Sep-23Oct-23Nov-23Dec-23Jan-24Feb-24Mar-24
Number of casesNet customer loss
Introduction of cryptocurrency block triggered spike following
discovery and disruption of many ongoing scams
Introduction of Westpac
Verify
Introduction of
cryptocurrency blocks
‘Callstop’ initiative launched and expanded in
partnership with telcos

VERIFY
Westpac Business Spotlight September 202415
Alerts customers when
there is a potential
account name
mismatch when
they’re adding a new
payee using a BSB
and account number

SAFERPAY
Westpac Business Spotlight September 202416
Presents customers
with a series of
questions in instances
where a payment is
considered a high risk
of being a scam

SAFECALL
Westpac Business Spotlight September 202417
Provides customers
with calls via the app
that are Westpac
branded, verified by
Optus and displays a
reason for the call

ARTIFICIAL
INTELLIGENCE
David Walker, Group Chief Technology Officer

TWENTY-FIVE GENERAL PURPOSE TECHNOLOGIES
IMAGES GENERATED WITH AI
#5: THE WHEEL
4000-3000 BCE
#13: THE STEAM ENGINE
18
th
century
#23: THE INTERNET
20
th
century
#21: THE COMPUTER
20
th
century
... and Artificial Intelligence is likely to be #26
19Westpac Business Spotlight September 2024

TO BE OUR CUSTOMERS’
#1 BANK AND PARTNER
THROUGH LIFE
WE NEED TO ADAPT TO
THE CHANGING WORLD
20Westpac Business Spotlight September 2024

THREE MAIN BENEFITS, ACROSS DIFFERENT TIMEFRAMES
Short termLong term
TIME TO VALUE
PRODUCTIVITY
EXPERIENCE
EXPERTISE
‘AI removed hours of toil with simper processes ...’
‘I now do my banking through chat ...’
‘My Westpac Copilot helped me with my payments ...’
SHORT-TERM BENEFITS: PRODUCTIVITY
MID-TERM BENEFIT: IMPROVED CUSTOMER EXPERIENCE
LONG-TERM OPPORTUNITY AREA: EXPERTISE
This page contains ‘forward-looking statements’ and statements of expectation. Please refer to the disclaimer on page 24.
21Westpac Business Spotlight September 2024

AI IN MORTGAGES
CAPABILITIES:
OUTCOMES:
In Development
2
The capabilities and outcomes on this page are ‘forward-looking statements’ and statements of expectation. Please refer to the disclaimer on page 24.
1.Progressively launching Sept-Nov 2024 2. Pilot expected to commence in Nov 2024. 3. Subject to successful pilot.
22Westpac Business Spotlight September 2024
Validate & verify
submitted
documents
against policy
Reads and
summarises
submitted
documents
Recommends optimisation
for customer application &
drafts response messages
with options and actions
Better experience for
employees, brokers, and
customers
Faster for
customers with
quicker decisions
Reduction to
handling time with
less work
Consistency of
credit decisions
Virtual Agent to
intelligently
guide employees
Potential application
3
Live/Piloting
1

SCALING AI PLATFORMS TO INCREASE
SPEED TO MARKET
Forward benefits of
implementing the AI
Accelerator:
Rapid speed to
market of AI use
cases
Lower cost of AI
use cases
Exceptional customer
and staff experiences
Embedded AI
guardrails
Safe and easy AI
experimentation
Business user
with idea and
data
This page contains ‘forward-looking statements’ and statements of expectation. Please refer to the disclaimer on page 24.
23Westpac Business Spotlight September 2024
‘Bring Your
Own’ data
Self-serve
patterns
Built-in
guardrails
World-class
AI platforms
Experiences for
employees and
customers
At speed

The material contained in this presentation is intended to be general background information on Westpac Banking Corporation (Westpac) and its activities.
The information 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 business and operations, macro and micro economic and market conditions, results of operations and financial condition, capital adequacy and risk management, including,
without limitation, future loan loss provisions and financial support to certain borrowers, forecasted economic indicators and performance metric outcomes, indicative drivers, climate- and other sustainability-
related statements, commitments, targets, projections and metrics, and other estimated and proxy data.
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.
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' under the
section ‘Performance Review’ 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.
DISCLAIMER
Westpac Business Spotlight September 202424