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Westpac revamps operational model

25 November 2011 5:37PM
Westpac will turn to chief lawyer and company secretary John Arthur to oversee the renovation of its sourcing arrangements. The bank announced the appointment of Arthur as chief operating officer yesterday.Arthur will have responsibility for a new division called group services. This division will cover technology, banking operations, and legal and property services, Westpac said.The bank has also decided to draw its retail banking, business banking and wealth management arms into a single division to be known as Australian Financial Services (see following article).It is only two months since Westpac handed responsibility for most of its core services to Peter Hanlon. At that time Hanlon was group executive for human resources, but from the beginning of October he was been responsible for "transformation and productivity".Hanlon will now head up the Australian Financial Services business on an interim basis until Brian Hartzer - recruited from Royal Bank of Scotland in the UK - is available to take on the role.While tagged as a lawyer, Arthur has worked in financial services for some of his career. This dates from his time on the payroll at MLC in its days under Lend Lease's ownership. His full-time career in banking, however, dates back only to 2008, when he was appointed group counsel at Westpac (though his actual responsibilities may have been wider).The selection of Arthur as COO emphasises that a critical task for the bank is managing  the legal risks associated with the bank's increased reliance on outsourced, and often offshore-based, suppliers.A related staffing move is a reduced role for Bob McKinnon, previously the group executive responsible for technology. McKinnon will have a new job title of "enterprise executive, group services".For the time being, Westpac may not have an executive with a job that corresponds to the position of chief information officer such as is employed in many large organisations. The bank may recruit a CIO at a later date, however.

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