As part of this initiative, Westpac is investing approximately $200 million over the next three years to restructure its workforce. The plan includes retraining or redeploying existing staff into roles that directly support business lending, thereby enhancing the bank's ability to meet the growing demand for SME financing.
Central to Westpac's strategy is the introduction of BizEdge, an AI-powered business lending origination platform designed to expedite loan approvals. This digital tool aims to streamline the application process, enabling faster access to funds for businesses seeking to expand or manage cash flow.
Recent interim results indicate that this approach is yielding positive outcomes. In the first half of 2025, Westpac reported a 14% increase in business lending compared to the same period in 2024, significantly outpacing the bank's total loan growth of 5%. Notably, the majority of this growth has been within the SME segment, underscoring the effectiveness of the bank's targeted efforts.
Despite these gains, Westpac continues to trail behind competitors such as the Commonwealth Bank of Australia (CBA) and the National Australia Bank (NAB) in terms of total business lending volume. However, the bank's aggressive push into the commercial lending space reflects a broader industry trend, as financial institutions seek to capitalise on higher margins and reduced regulatory burdens associated with business loans compared to residential mortgages.
For SMEs, this development presents an opportunity to access more tailored and responsive financial solutions. Westpac's commitment to enhancing its business lending services aligns with the needs of Australian businesses seeking flexible and efficient financing options to support their growth and operational requirements.
