Bankwest launches simpler banker as digital-pivot takes shape

Commonwealth Bank’s move to shut Bankwest branches has left the West Australian operation as a digital-only operator.

The Bankwest headquarters in Perth.

Bankwest is positioning itself as the simple answer for customers seeking no frills banking, in the first major move for Commonwealth Bank’s West Australian operation after closing or consolidating its branch business last year.

As its new banking app hit the market on Tuesday, Bankwest boss Jason Chan said it was clear there was a market for a “simple, digital-only proposition”.

Mr Chan said many Australians, particularly older bank customers, were keen for uncomplicated transaction, savings, and loan banking products.

“Real people, they want just enough of what they need done, they want a simple experience so it doesn’t take too much time to figure out what’s going on,” he said.

“We’re looking at how to compete on experience and have that different experience.”

Bankwest’s two main deposit products offer rates as high as 5.35 per cent, with its Hero Saver product offering a $200 cash deposit and no withdrawals hurdle to hit its bonus interest rate.

Mr Chan said Bankwest had built its new app in-house, using some CBA technology, around its core banking platform.

He said this was “exciting” as it allowed Bankwest to use its tech stack and CBA’s scams and fraud technology.

“We’ve taken the best in breed that CBA has,” he said. “We’ve also got our own focus on creating a simpler and easier bank.”

Bankwest executive general manager Jason Chan. Picture: Alex Verhagen

Mr Chan said Bankwest would also differentiate itself from CBA in some areas, including a looming launch of virtual cards, including offering customers the chance to issue one-use digital cards for online purchases.

Mr Chan said Bankwest was now growing its customer base, after tracking sideways in the wake of the move to shut its branches in March last year.

“This is an opportunity for us to develop a clear strategy around this new target market to grow into that,” he said.

CBA has made a point of trying to drive much of its home lending through the bank’s internal systems, rather than mortgage brokers.

But, Mr Chan said Bankwest, which wrote 80 per cent of its lending through brokers, would continue to engage with the broader mortgage market.

“We’ve always been a strong supporter,” he said.

He said brokers gave Bankwest access to a growing nationwide market from its traditional West Australian customer base.

But, Bankwest has also walked away from its former business banking customers, who have since been rolled into the CBA business bank under Mike Vacy-Lyle.

Most staff from the former business lending arm have been redeployed within the bank. Mr Chan said this was part of the simplification journey for Bankwest.

“Over time we realised we couldn’t outperform every segment,” he said.

CBA snapped up Bankwest in September 2008 in a $2.1bn deal, picking up the operation from Lloyds TSB after its former owners HBOS were crunched by the Global Financial Crisis.

The business has almost 3000 staff in Western Australia, based out of its Perth office.