Published on the 05/02/2015 | Written by Beverley Head
A reshuffle at Westpac means that half of the CIOs in Australia’s leading banks again report to their chief executive officer, reinforcing the importance of technology to the sector…
Westpac’s new chief executive officer Brian Hartzer, took the reins at the bank this week. One of his first actions was to make chief information officer Dave Curran a direct report.
He also anointed David McLean as CEO of Westpac NZ; McLean has been acting in the role since last August when Peter Clare stood aside after a heart attack.
Westpac and Commonwealth Bank both now have their CIOs report to the CEO, signaling the strategic importance of technology to the organisations. ANZ and NAB meanwhile force their CIOs to report to either the chief operating officer or a group executive, rather than the banks’ bosses.
The return of the CIO to the top table was identified as a trend by Gartner in its 2015 CIO Survey which found that 41 percent of CIOs are reporting to their CEO. “This is a return to one of the highest levels it has ever been, a result of the digital narrative gaining prominence in the boardroom and on the executive committee,” according to Gartner.
At Westpac the decision also heralds a lightbulb moment from Hartzer, who said in early 2013 that 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,” said Hartzer at the time.
By this week however it was a changed story with Hartzer bent on “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”.
That, he said, was why he had elevated Curran to the most senior executive ranks.
Westpac and Commonwealth Bank are still the only two Australian bank majors where the CIO has a seat at the top table. Commonwealth Bank’s CIO David Whiteing sits on the senior management team of CBA and reports to CEO Ian Narev.
ANZ’s recently appointed CIO Scott Collary meanwhile reports to COO Alistair Currie. NAB CIO David Boyle reports to Renee Roberts who was appointed group executive of enterprise services and transformation last August.
