Hartzer has a change of heart about the importance of technology

The Westpac Group has signalled the start of a new golden age for technology in the bank by elevating chief information officer Dave Curran to become a direct report to newly installed group chief executive, Brian Hartzer.

Hartzer made the announcement yesterday during his first day as CEO, saying that the technology function was critical to Westpac's ability to deliver on its strategy and that, as a result, Curran would report directly to him in the future rather than to the bank's chief operating officer.

The announcement also signals a U-turn by Hartzer who, back in March 2013 as then CEO of Westpac's Australian Financial Services division, told investors he was not convinced of the competitive advantage technology could confer.

"How many sources of genuine competitive advantage from technology have you seen any big bank create in the last 20 years? …I can't think of many," he said at the time.

But from January 2013 until last November, Commonwealth Bank - the acknowledged technology leader of the big four banks - held top slot in customer satisfaction rankings. Westpac only took the crown following CBA's public drubbing over its financial planning debacle.

By yesterday Hartzer appeared a newly hatched technophile, acknowledging the importance of "digitally transforming our business, increasing our investment in wealth, business banking and Asia, and working more closely with innovation industries and disruptive technologies that are transforming our economy."

To that end, having Dave Curran as a direct report is an important step.

Curran was named Westpac CIO in September after consulting to the bank for several months after his departure from Commonwealth Bank, following the completion of its core banking technology overhaul.

Westpac and Commonwealth Bank are still the only two majors where the CIO has a seat at the top table and reports directly to the top. Commonwealth Bank's CIO David Whiteing sits on the senior management team of CBA and reports to CEO Ian Narev.

ANZ's former CIO Anne Weatherston had originally reported to CEO Mike Smith, but in 2012 had the rug pulled out from under her and was instructed to report to the chief operating officer.

That situation persists for Scott Collary, who was installed as ANZ CIO last November and who reports to COO Alistair Currie.

At NAB, CIO David Boyle reports to Renee Roberts who was appointed group executive enterprise services and transformation last August, and it is she rather than Boyle who is a member of NAB's executive leadership team.

Technology is just as important to NAB and ANZ as it is for CBA and Westpac - though arguably they are further behind on the technology transformation curve.

While NAB's NextGen technology refresh continues, the bank will remain shackled to legacy systems until at least 2017, and CEO Andrew Thorburn has already criticised the initiative for taking too long and costing too much.

The ANZ meanwhile has been rolling out technology to support its Asian growth plans, rather than overhauling its core platforms.