Westpac

Westpac BML case - exam preparation - printed 27 May 2006

Obtaining ACCC approval

This was obtained for two reasons:

▪ in light of Wallace enquiry, ACCC accepted W's submission that market should be segmented into six product markets for retail banking, and that "substantial lessening of competition" test could be applied to each; and

▪ by negotiating a series of conditions designed to protect customers.

Result: Major success. Without ACCC approval, no merger

Operational perspective, challenge is to roll out a plan which:

▪ Technical conversion - avoided failures of previous mergers

▪ Customers/service delivery at branches - doesn't disaffect Westpac's and BML's

▪ Staff - informative to and inclusive of Westpac's and BML's

▪ preserves the best of each bank

Technical Conversion

Must integrate the IT systems

Must avoid the technical failures and loss of data which occurred in previous mergers

Decision to migrate to Westpac system

Difficulty in retaining skilled IT staff to run Hogan system in short term

▪ frequent and honest communication

▪ negotiating a orderly exit of employees to other organisations

Result: successful - no technical "hiccups" or loss of data

Customer service delivery through integrated Branch Network

Retain the popular "look and feel" of BML branches

Primarily adopt Westpac locations due to size

Pick the best systems and process from each:

▪ BML's uniforms, recruitment and induction procedure

▪ Westpac's front line authority levels higher so were re-launched

Result: successful - after initial drop in customer service, slow steady gain

Creating a new culture among staff

Westpac technology driven, culture of compliance, bureaucratic

BML customer more in control, staff are CSO's who use their discretion

Staged roll out program - from 8 weeks to the weekend