The Future For Banking. Jerry Gross Group Executive Westpac Banking Corporation

The Future For Banking Jerry Gross Group Executive Westpac Banking Corporation jgross@westpac.com.au

The Banking Environment We are in the Services Age! It s a Buyer-Centric world Emergence of the Experimental Economy Real-time, 7 by 24, frictionless markets Increasing rate of technology change 11 April 2000 2

Commerce Trends All Commerce is e-commerce Ubiquitous smart devices Information explosion Negligible transaction costs Spot or auction pricing Opportunities for middle-men 11 April 2000 3

Our Beliefs "Clicks and Bricks" is our ultimate offensive play Focus on "Outside In". be the customer! It s all about speed of execution, culture and alliances Self-serve mass customisation Rapid start-up of new business models Growth through value Build to change, not build to last 11 April 2000 4

Commerce Landscape Number of Hits High Westpac Expedia Amazon Auto-by- Tel E-Loan Quicken Yahoo! Excite Lycos Infoseek c/net Snap! HotBot Other Search Engines MSN Earthlink Netscape s Netcenter Microsoft s Start AOL Low Individual Company Specialized Aggregator Mega Aggregator Portal Sites/ Independent Gateways Internet Service Provider Gateway Browser Gateway Proprietary On-Line Services Low/Narrow Content Integration / Focus High/Wide 11 April 2000 5

Alliance Strategy Direct access to customer? TXN derived from commodity? 11 April 2000 8

Alliance Strategy Direct access to customer? TXN derived from commodity? Access through a powerful brand? Consistent with growth strategy? Expanding market? 11 April 2000 8

Alliance Strategy Direct access to customer? TXN derived from commodity? Access through a powerful brand? Consistent with growth strategy? Expanding market? Eyeball Exclusivity? 11 April 2000 8

Alliance Strategy Direct access to customer? TXN derived from commodity? Access through a powerful brand? Consistent with growth strategy? Expanding market? Eyeball Exclusivity? Joint Venture Strategic Alliance Short Term Play 11 April 2000 8

Westpac Execution Westpac, the trusted online advisor Solutions Aggregator Taking the "High Ground" at the "Back-End" Eliminate the "e" in e-business Message-enable = e-enable Customer Managed Relationship (CMR) The Idea Accelerator Focus on the rich components of the Customer Value Chain 11 April 2000 9

Focusing on Customer Rich Components GUI OBJECTS MIDDLEWARE MESSAGING OPERATING SYSTEM HARDWARE NETWORK 11 April 2000

Focusing on Customer Rich Components GUI OBJECTS MIDDLEWARE MESSAGING OPERATING SYSTEM Robust large HARDWARE scale management NETWORK 11 April 2000

Focusing on Customer Rich Components Rapid Execution GUI Close to the Customer OBJECTS MIDDLEWARE MESSAGING OPERATING SYSTEM Robust large HARDWARE scale management NETWORK 11 April 2000

Strategic Options High IT Enabled Transformation Low Low Enhance Business Execution Extend the Enterprise Create a New Business Web site Intranet Supply Chain Potential Buyer Value Capture New value networks New value propositions New business models Increase business scope Reconfigure business networks High 11 April 2000 11

Competitive Advantage Use Technology Not as originally intended Interconnect everyone and everything Reliable and adaptive infrastructure Rapidly implement cost-effective solutions and services Focus on customer future business solutions Build the best path to the customer and business partner 11 April 2000 12

Our Business Mission We offer the most compelling financial web lifestyle 11 April 2000 13