Westpac is a major Australian bank that has undergone significant transformation through strategic investments totaling $2 billion. This includes modernizing payments infrastructure to improve customer experience, reduce costs, and increase flexibility. The investments follow a clear project governance framework and focus on delivery. Westpac services customers across Australia, New Zealand, Asia and globally through consolidated technology, while ensuring compliance in varied regulatory environments.

1. ^ìëíê~äá~å=`fl=pìããáí=OMNO
cçääçï=ìë=çå=qïáííÉê
@ãÉ`fl=E]ãÉpìããáíëfqF=
ÜííéWLLíïáííÉêKÅçãLãÉpìããáíëfq
objfkaboW=mib^pb=e^ka=fk=vlro=bs^ir^qflk=cloj=
_bclob=ib^sfkd=qeb=prjjfq

2. Australian CIO Summit 2012
Implementing change in The Westpac Group
Jim Burke
Chief Information Officer
Westpac Institutional Bank
23 - 25 July 2012
© 2012. Westpac Banking Corporation. ABN 33 007 457 141 Al rights reserved. Information in this document is confidential. No part of this document may be reproduced or transmitted in any form or by any means,
electronic, mechanical or otherwise, for any purpose, without the express written permission of the Author.

3. An overview of The Westpac Group
• Westpac Banking Corporation was founded in 1817 and was
the first bank established in Australia (Bank of NSW).
• In 1982, we merged with the Commercial Bank of Australia &
became Westpac Banking Corporation. In 2008, Westpac
merged with St. George Bank Limited.
Our Operating Model & Brands
• The Westpac Group has branches and controlled entities
throughout Australia, New Zealand and the Pacific and
maintains offices in key financial centres around the world
including the UK, USA, Hong Kong, China, Singapore,
Indonesia and India.
• We provide a broad range of financial services in these
markets, including retail, business, institutional banking and
wealth management services.
• As at 30 September 2011, The Westpac Group employed
approximately 38,000 people globally, had total assets of
$670.2 billion, a market capitalisation of $61.6 billion and our
NPAT was $6.9 billion.
• About 572,000 people and institutions in Australia and overseas
are Westpac shareholders.
• The Westpac Group has 3 key customer facing divisions
through which we serve our 12.2 million customers:
1. Australian Financial Services (AFS);
2. Westpac Institutional Bank (WIB) and ;
3. Westpac New Zealand.
Page 3

4. Our Strategic Intent & Investment Program
Strategic Intent Strategic Investment Priorities (SIPs)
• Two years ago, Westpac embarked on a journey to transform the
organisation through an ambitious portfolio of investments that
would ultimately touch every part of the organisation, significantly
improve the way we interact with our customers and position the
Group for strong future growth.
• Today, our $2bn Strategic Investment Priorities (SIPs) are
delivering benefits that are having a real impact.
Payments Transformation Group Customer Master
Online Transformation Enterprise Services Bus
Wealth Transformation Enterprise Perimeter Security
Banksmart Testing Transformation
Deposit Growth Data Centres Transformation
Secured Lending Integrated Migration Transformation
Cards & Collections Information Management
Page 4

5. Payments SIP - the ecosystem that underpins the Bank
• The Payments platform and systems support the payments products that all customer segments use (such as BPAY, Payroll & Direct Entry) as well
as the clearing and settlement activities for the Bank. This includes both domestic & international, wholesale & retail, real time and overnight batch
processes.
• On average, Westpac clears and settles around 26 million transactions per day with a value of approximately $150 billion.
• In 2007, the Payments Transformation Program was initiated to address four key areas of concern that are putting our business at risk:-
1. Current customer experience leaves significant room for improvement;
2. Lack of system reliability with frequent outages or process breakdowns impacting both customers and our market position including
relationships with other banks and regulators;
3. High cost and complex processes and infrastructure result in errors and re-work that are often difficult to recover and result in a poor customer
experience; and
4. Lack of flexibility to respond to existing and future market and regulatory changes – including innovation.
International & Wholesale Payments Domestic Payments POS/ATM Single Exchange Settlement
• The Payments B e e a s y to u s e
• C rea te a s ea m le ss a n d i n t eg ra te d cu sto m e r e x p er ien ce a c ro s s co re
B e e a sy t o u s e s o lu t io n s
Transformation Program
is a priority battlefield
that will help the E n h a n ce
En ha nc e • E n h a n c e a n d re- en g in ee r a d d i ti o n a l p a ym e n t e n d - to -e n d p ro ce ss es an d
Westpac Group achieve s e r v ic e &
s e r v i ce & c u st o m e r se rvi ce ca p a b ilit ie s
our vision. r e d u c e co st
r e d u ce c o s t
• Five critical capabilities
will be delivered to help • L e v er a g e cu s to m er in fo r m a ti on t o p r o v id e in fo r m a ti on -b a se d va lu e a d d e d
us achieve the desired A d d v a llue
A dd va u e s o lu t io n s an d s u p p or t t h e c u s to m er’s va l u e c h a in
customer experience &
meet our regulatory
requirements:- B e 10 0%
Be 1 00 % • I m p ro ve rel ia b i li ty b y u p g rad i n g co re p a ym e n ts I T sy s te m s i n lin e w ith a
r elliiab le
re a ble s im p l ifi ed , e n te r p r is e w i d e I T a r ch i te ct u re
• P ro m o te in d u s try in n o va ti o n , l a u n c h in g n e w p r od u ct s to m ee t e m e rg i n g
B e a le a d e r
B e a l e ad e r c u st o m e r n e ed s
Page 5

6. We drive this change through a clearly articulated Project Governance Framework &
Project Execution Framework
• Executive Sponsorship
• Governance Framework
• Project Execution Framework
• Focus on Delivery & Implementation
• Impacts – customers, employees, partners
Page 6

7. We will apply the same approach to achieve the same “on time and
budget” track record in the Payments SIP.
Focus Areas: Focus Areas:
• The key to better performance • Follow through on existing
across all our businesses is successful productivity initiatives &
having engaged committed optimise our multi brand strategy.
people. We will raise the bar on • Adopt ‘Agile’ methodology to prove
leadership development n and results quickly (particularly where
people management as part of business requirements to create
this next phase, including our daylight aren’t yet clear)
diversity initiatives. We have
• Execute project prioritisation as
made good progress this year on
endorsed by ET.
our objective to improve gender
equality – we now have women in People Process • Drive the implementation of the new
around 37.5% of our leadership Project Execution Framework
roles and we continue to move methodology (PEFm).
towards our objective of a 40%
ratio by the end of 2014).
Technology Overall
Focus Areas: Focus Areas:
Solutions Impacts
• Follow through on existing • Driving even further depth and
successful productivity initiatives, strength in our relationships,
such as our Technology upgrade particularly in deposits, wealth,
program, optimise our multi brand payments, transactional banking and
platform and further streamline trade and with a focus on our high
and standardise all common or value relations managed segments
shared services. such as corporate and affluent.
• Continue to refine the operating
model to best service international
infrastrucutre & application
footprint.
• Minimal SEV1 outages.
Page 7

8. A single infrastructure solution for the entire Westpac Group
Varied Regulatory Environment Innovative Technologies Group Infrastructure Solution
Page 8

9. Westpac in Asia
Asia Focus
• The journey thus far.
• Locations.
• Products.
• Solutions.
Fundamental capabilities to support our growth:
1. Global operating model, allowing our operations to ‘follow the sun’.
2. Compliance with domestic and offshore legislation.
3. Core, consolidated product systems and data masters.
4. Process & internal controls standardisation across geographies.
5. Multi-currency GL supporting operations across all regions.
6. Consolidated transactional and trade data, supporting Risk & Finance.
7. High performance global infrastructure supporting businesses.
Page 9

10. Questions
Group Strategy
WIB Strategy WIB Technology Strategy
Page 10

11. ^ìëíê~äá~å=`fl=pìããáí=OMNO
cçääçï=ìë=çå=qïáííÉê
@ãÉ`fl=E]ãÉpìããáíëfqF=
ÜííéWLLíïáííÉêKÅçãLãÉpìããáíëfq
objfkaboW=mib^pb=e^ka=fk=vlro=bs^ir^qflk=cloj=
_bclob=ib^sfkd=qeb=prjjfq