New Westpac CEO Anthony Miller has a long laundry list that’s fraught with risk

There’s a long list of items for the incoming Westpac CEO to address such as locking down an executive team and ensuring the bank’s risky technology overhaul is well executed.

Incoming Westpac chief executive Anthony Miller and the man he is replacing, Peter King. Picture: Jane Dempster

It’s about eight weeks until new Westpac chief executive Anthony Miller is handed the baton, and he certainly has a hefty task ahead.

There’s a long laundry list of items he’ll be addressing including locking down his executive team and ensuring the bank’s marquee, but riskytechnology overhaul is on track and being executed well.

Miller hails from a family of high achievers – two of his siblings represented Australia at the Olympics – and he traversed from investment banking to Westpac in 2020, joining as head of the institutional bank. He takes the reins as CEO from incumbent Peter King in December.

Running a big four bank, though, is a much bigger task than anything he’s done in the past, including running Deutsche Bank’s Australian and New Zealand operations. For a major bank even a relatively small misstep can bring a CEO undone – it’s an unforgiving sector with plenty of stakeholders.

Westpac’s long overdue technology simplification program, dubbed Unite, has started and is a priority for Miller. It sees the bank through to the end of its 2028 financial year and rationalises Westpac’s disparate tech systems, networks and platforms from more than 180 to about 60.

Those close to Miller have heard him describe Unite as an existential project for the bank that could also prove dangerous if not executed well. That’s a pretty accurate reading of its significance given it’s the most notable technology program embarked on in the past two decades at Westpac and represents the bank investing in its future as well.

Miller is understood to have immersed himself in sessions to get up to speed on the mechanics of the Unite project over recent weeks.

The Unite program, while fraught with risk, is deemed essential to Westpac’s future and its ability to compete with its rivals, some of which are streets ahead on their technology upgrades. King, who by the time of his departure will have served about five years at Westpac’s helm, needs to be lauded for moving ahead with such a key project that is long overdue.

Westpac has run a spate of disparate systems since its 2008 takeover of St George.

Also on Miller’s list is firming up his executive team and replacing his role as head of the business bank. If retail banking boss Jason Yetton decides to make for the exits after missing out on the top job, Miller will have two key roles to fill.

With a new CEO in the hot seat, watch for any other key appointments or retirements on the executive front bench, given those that may be contemplating a move will likely see a changing of the guard as a good time to shift or call it a day. Miller will also want to install aligned lieutenants.

A notable gap in Miller’s credentials is his lack of retail banking experience so it will be interesting to see how he positions Westpac in a still highly competitive part of the market.

Miller has previously said he will home in on areas including the business and institutional banking units for growth, while investors will also watch the retail bank where it’s expected there will be a fresh assessment of how to best draw on Westpac’s multibrand strategy. Westpac’s brands include St George, Bank of Melbourne and BankSA.

The bank has in recent months ditched the RAMS Home Loans brand, closing it to new loan applications, after an unsuccessful attempt to sell the unit and given the business has been embroiled in controversy linked to the alleged conduct of franchisees.

Doing more with retail banking customers beyond their mortgage is also something Westpac is focused on.

Miller is understood to be predominantly plotting an organic growth path but is alert to any opportunities that a once in a decade type disruptive event or steep downturn may create within the banking sector.

After Westpac earlier this month agreed to offload its auto loan and lease receivables to listed non-bank lender Resimac, further divestments may not feature on the near-term agenda.

Originally published as New Westpac CEO Anthony Miller has a long laundry list that’s fraught with risk