In an ASX market update, the big four bank said that creating one united wealth platform through its migration from Asgard to Panorama remains a key focus for FY24–25.
The migration – subject to approval from the BT Funds Management board – will cost approximately $70 million but will lead to estimated benefits of $40 million per annum, according to Westpac.
By consolidating its contemporary wealth platform into one, the bank said this will lead to a more streamlined and consistent experience for both financial advisers and customers.
Other expected outcomes as a result of the migration include a simplified operating and service model for employees, enhanced risk management and a simplified technology roadmap.
Westpac fully acquired BT Financial Group in 2002 and its Panorama platform has grown to hold an approximate market share of 12.2 per cent as at September 2024.
In mid-2023, Westpac confirmed it had concluded the sale of the BT platform business but decided to retain the business.
“Westpac will retain and continue to invest in the business including the development of features to improve the adviser and investor experience, as well as the ongoing simplification and improved efficiency of its operations,” it said at the time.
The sale process for BT’s wealth management platform had been ongoing since February 2022 and potential interested parties included AMP, HUB24, and Netwealth. However, the main rival had been Colonial First State, backed by US private equity firm KKR.
Speaking to InvestorDaily’s sister brand Money Management in 2023, BT CEO Matt Rady said: “It took a lot longer than anyone would have seen as ideal, but we felt it was important to do it right and we had a lot of interest which was exciting, but we couldn’t reach an agreement.
“As a consequence of that, Westpac sees an amazing opportunity to invest in the business for years to come and recognise the strength we have in the market.”
Last year, Insignia announced it had completed the migration of the MLC platform to Expand that affected $39 billion in funds under administration (FUA) and 94,000 customer accounts. The completed platform made Expand the third-largest wrap platform by FUA.
Insignia said the migration delivered “tangible benefits” in a collective $13 million saved in administration fees per annum, an improved user experience for advisers and a simpler way of working.
