Westpac set for colossal revamp

Westpac set for colossal revamp

Westpac lifts the lid on its hotly anticipated five year IT strategy.

Westpac Banking lifted the lid on its hotly anticipated five year information technology strategy earlier this month. Usually the stuff of geeks in the corporate back office, this plan was far more closely watched than most as it laid out a roadmap for welding Westpac's computer and communications systems to those of St George Bank. It's a high risk task and one that Westpac said will cost A$300 million over two years. That's a lot of money in anyone's book, but it's also just a fraction of what the bank will need to spend.

Westpac chief information officer Bob McKinnon, recruited from Brookfield Multiplex last July, remains coy on the total cost of the five-year technology strategy.

"We're about to go into our business planning cycle over the course of the next month, so at the moment a lot of those [cost] discussions are yet to be bolted down," he told the Australian Financial Review.

But analysts have calculated that each of the Big Four banks is due to spend roughly A$1 billion on much needed update to their core information systems.

It is believed Westpac will spend at least that amount as it integrates, refreshes and replaces information systems using a pool of IT operating and capital expenditure worth many hundreds of milions of dollars a year.

Read more at MIS Australia

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