Westpac’s UNITE Program Aims to Overhaul Decade-Old Structural and Operational Issues
Westpac, one of Australia’s largest banks, has embarked on a significant technology overhaul through a program known as UNITE. This ambitious initiative, aimed at resolving legacy structural and operational issues that have plagued the bank for a decade, is expected to conclude in mid-2029, a few months later than originally anticipated.
Westpac CEO Anthony Miller
UNITE’s Progress and Investment
The bank confirmed during its FY2025 full year results that it had completed the discovery and planning phase for UNITE and is now in the execution stage. To date, Westpac has expended $807 million on UNITE, indicating that the program is approximately 40% complete.
Westpac’s technology expenses surged by 13% to $3.1 billion last year, attributed primarily to the UNITE program. The bank anticipates spending between $850 million and $950 million on this program in FY2026, with UNITE expected to consume around 40% of the bank’s investment spend in the following two years.
UNITE’s Impact on Operational Costs and Efficiency
Westpac is confident that the UNITE program will play a pivotal role in reducing the bank’s cost base and closing the cost-to-income gap relative to its peers. They attribute the 7% rise in staff costs to $6.3 billion, in part, to the investment in UNITE.
A significant aspect of UNITE is its intent to simplify Westpac’s technology stack. The UNITE delivery program comprises around 1,600 people, working on multiple initiatives amalgamated into 10 work packages, to streamline operations and enhance efficiency.
Westpac’s Shift to a Single Deposit Ledger
During the investor presentation, Westpac CEO Anthony Miller revealed an unexpected fact: Westpac has been operating on more than one deposit ledger all these years. The bank is now working towards consolidating its operations into a single deposit ledger, a shift that has extended the timeline for the UNITE program.
This revelation underscores the complexities involved in modernizing legacy banking systems and the challenges Westpac faces in executing its technology overhaul. However, Westpac’s commitment to UNITE’s goals demonstrates the bank’s dedication to improving its operational efficiency, customer service, and competitiveness in the evolving banking landscape.
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