Business & Consumer Banking - WestpacBusiness & Consumer Banking Introducing the BCB leadership team...

Business & Consumer Banking

Introducing the BCB leadership team

August 2005

BCB Leadership Team introduction – August 2005 2

Working Capital & Trade Solutions Alexandra HolcombWorking Capital & Trade Solutions

Westpac WayKen HodgsonConsumer Financial Services

Mortgage BrokersJames GallowayFinancial Services Partnerships

PinnaclePeter HanlonBusiness Financial Services

OverviewMike PrattGroup Executive, BCB

TopicSpeaker

Today’s agenda


The evolving operating environment

• Increased reporting/ compliance requirements

• International ‘harmonisation’challenges

• Renewed focus on customer oriented strategies

• Global players expanding

• Specialist, third party and non-financial players

• Price increasingly being used to attract business

• Competition for talent

• Ageing population

• Increasing demand for investment advice

• Customers becoming more price sensitive

• Greater awareness of choice

• Aust GDP growth ahead of OECD growth

• Credit growth to slow but continue to exceed nominal GDP growth

• Environment remains broadly favourable

RegulatoryCompetitorsCustomersEconomic


1 71 7 M a rk e t U p d a te 2 0 0 3

C u s to m e r E xp e r ie n c e

E le m e n ts o f a g re a t re ta il b a n k in g fra n c h is e

P ro d u c ts a n d s o lu tio n s

C u s to m e r e x p e r ie n c e / re la t io n s h ip

m a n a g e m e n t

M u lt i-c h a n n e l d is tr ib u t io n

R is k m a n a g e m e n t

P e o p le

2003

Elements of a great retail banking franchise

2004

Building sustainable performance

Evolution of our business structure

2005

Market Update July 2005 – Mike Pratt31

Delivering profitable growth

BCB Mission

To be the #1 service organisation in financial services

Consumer Strategic Focus Business Strategic Focus

Program 1 Program 2 Program 3 Program 1 Program 2 Program 3

People & Culture Development for the long-term

Our investment programme – Reach, Pinnacle and Service Online

Teamwork Integrity Performance

Customer Loyalty

Internal Service Quality

Employee Productivity

Sales & Service Disciplines (Westpac Way)

Underpinned by

Delivering profitable growth

Aligned to 5 key elements of banking

Distribution focus and service orientated

Customer Segment focus


Our structure supports our strategy

BCB Mission

To be the #1 service organisation in financial services

Consumer Strategic Focus Business Strategic Focus

Program 1 Program 2 Program 3 Program 1 Program 2 Program 3

People & Culture Development for the long-term

Our investment programme – Reach, Pinnacle and Service Online

Teamwork Integrity Performance

Customer Loyalty

Internal Service Quality

Employee Productivity

Sales & Service Disciplines (Westpac Way)

Underpinned by


BCB Executive Team

Customer Facing

Business Units

Business Support

Units

BCB

Consumer Financial Services

Ken Hodgson

Business Financial Services

Peter Hanlon

Working Capital & Trade Solutions

Alexandra Holcomb

Customer ServicingLaz Cotsios

Financial Services Partnerships

James Galloway

FinanceDavid Lees

People & PerformanceAmanda Revis

RiskFiona Larnach

Product & MarketingTim Harrington

ITPatrick Eldridge

Business Process Re-engineeringCalvin O’Brien


The Westpac Way

• Westpac Way is a comprehensive sales management program, that:

• Achieves sales through service

• Is a consistent and disciplined approach to sales management

• Enhances and integrates existing practices

• Is an ongoing commitment from leadership and management

ExecutivesQuarterly Sales StrategyMonthly Sales BoardWeekly Sales Meeting

Regional MangersMonthly Sales BoardWeekly Sales meetingWeekly Coaching

Sales ManagersWeekly Sales meetingWeekly CoachingWeekly Team meeting

Bankers

Weekly Sales meetingWeekly CoachingWeekly Team meeting







Bankers


Bankers


For example: Home Finance ManagersMeasurements• Customer contacts• Interviews• Conversions• Pipeline management• Settlements


Reach – knowing our customers better

Integration with Pinnacle

– continuous conversation for fulfilment

• Referrals and service requests

• Sales force management, measurement

• Customer future needs and follow

up

• Lead actioning

Customerexperience

Improvements

Revenuegrowth

Costreduction

Sales

management capability

FulfilmentSalesServiceTargetKnow

• Integrated CRM architecture links customer data

sources

• Continuous conversation –can see current

position of customer across

all channels

• Integrated campaign management

• Westpac Leads generation

BenefitsBenefits

Integration with Pinnacle

– continuous conversation for fulfilment

• Referrals and service requests

• Sales force management, measurement

• Customer future needs and follow up

• Lead actioning

Customerexperience

Improvements

Revenuegrowth

Costreduction

Sales management

capability

FulfilmentSalesServiceTargetKnow FulfilmentSalesServiceTargetKnow

• Integrated CRM architecture links customer data sources

• Continuous conversation –can see current position of customer across all channels

• Integrated campaign management

• Westpac Leads generation

BenefitsBenefits


The Broker Channel is a key focus

Improved Broker Model

• Financial Services Partnerships – a new division that supports and recognises the importance of the broker channel

• Business model better matches the service provided to brokers with their performance and potential.

• Active two way dialogue with brokers assists to enhance Westpac’s offer – both service and product

• Feedback and results to date very positive


Mobile Home Loan Experts

• Separately managed proactive Home Loan sales force:

- Self sourced leads

- No fixed branch location

- Westpac (VW) vehicle

- Enabling technology (Reach, Mobile Application Software)

• Placement of Mobile Home Loan experts in high opportunity areas to provide sales coverage without the traditional infrastructure

• Potential for at least 60 to be deployed nationally


Our Business Banking strategy is unchanged

• Business model continues to go well

• Opportunities to leverage off Business Lender and Business Bank of the Year

Reach (client relationship

management)

Pinnacle (credit

reengineering)

+

Segmentation/Technology Business Banking Distribution

+

Product & Risk Management

Industry Solutions

Recruitment, Training and skill development

Cu

sto

mer

Exp

erie

nce

+

People

Financial Centre

Business Direct

Senior RM

Middle Markets &

Priority

SME

Wealth

CM

RSM

Key:RM - Relationship ManagerRSM – Relationship Sales ManagerCM – Customer Manager (service)


Pinnacle - enhancing internal/external service quality

Disbursement

•Automated Document Preparation

•Automated workflow management

•Single view of customer

• Product information repository

•Electronic security register

•Re-use of customer information

•Automatic submission

•Automated decisions

•Automated bureau checks

•Full credit data repository and analysis

BenefitsBenefits

DocumentationCredit DecisionSales

•Automated workflow management of settlement activities

Disbursement











BenefitsBenefits



Disbursement











BenefitsBenefits













BenefitsBenefits



Customerexperience

Improvements

Revenuegrowth

Costreduction

Sales management

capability

Customerexperience

Improvements

Revenuegrowth

Operational

Efficiency

Sales management

capability

Reach



Why create this team

• Transactional Banking is critical to our customer focused strategy in both BCB & WIB

• Value is created by offering integrated transaction solutions, supported by information to assist customers in the management of their cash flow

• Specialists supporting generalist sales focussed on business banking growth

Core strengths

• Lead relationship# with ~40% of Australia/NZ large corporates

• Voted best Trade Finance Bank in 2004

• Innovative transactional banking solutions, eg, Invoice Finance and Present and Pay (PnP)

# Large Corporate & Transactional Banking Survey, Peter Lee Associates – 2004 & 2005



Opportunities

• Circa 14%^ share of Australian merchant acquiring market

• 23% share of documentary trade transactions*, weighted heavily to imports

• Significantly growing specialised sales force in Middle Market and SME segment

• Leveraging Corporate offering and capabilities into Middle Markets, eg, Invoice Finance

^ Based on East & Partners data* Large Corporate & Transactional Banking Survey, Peter Lee Associates - September 2004


My priorities for 2005/2006

• Embed Westpac Way and continue to implement systems to enhance sales performance

• Full implementation of major programs of work

• Focus on customer segmentation delivering growth in share of wallet and customer satisfaction

• Leverage cross business unit opportunities

• Continue to focus on leadership and culture development

Business & Consumer Banking

Introducing the BCB leadership team

August 2005


Disclaimer

The material contained in this presentation is intended to be general background information on Westpac Banking Corporation and its activities.

The information is supplied in summary form and is therefore not necessarily complete. Also, 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.

Business & Consumer Banking - WestpacBusiness & Consumer Banking Introducing the BCB leadership team...

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