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NSW Gov’s digital transformation takes on banking

by Ellen Sanderson •
Free resource

New South Wales has forged ahead with appointing ANZ Banking Group as one of the state’s core financial services providers. The new partnership is intended to allow the government to leverage the bank’s capability and experience in data analytics, agile methodologies, human-centred design, and transaction security.

Since the 2016 appointment of Maile Carnegie to ANZ Group Executive of Digital Banking, the bank has been at the forefront of implementing cutting-edge technologies and protocols such as: Apple Pay; the New Payments Platform; and, blockchain-based trade finance which are trickling down into public systems.

The NSW deal comes as part of a whole-of-government cost-saving initiative to transform the way frontline services are delivered to NSW citizens. The arrangement is expected to launch widespread consolidation and automation across the state’s departments as the government continues its overhaul on functionality and efficiency, especially from its financial services providers.

The new multi-provider operating model will leverage the leading market capability from Westpac, the incumbent bank, and ANZ to provide core banking and payment services. The third service arm under Citigroup will provide purchasing cards to the government. ANZ’s three year contract, with options to extend will focus on cash management, payments, merchant acquiring and cross-border banking requirements.

The recently re-elected NSW government is pursuing an ambitious transformation strategy, with digitisation of transactions considered a key priority under the state’s Digital Strategy as well as the creation of an Australian-first Department of Customer Service.

The new agreement with ANZ will focus on more payment options, improved security, and greater use of digital payments to manage the more than 13 million direct payroll payments and one million plus credit card payments made by the NSW government each year. The agreement also includes the approximate six million transactions conducted at Service NSW and the more than 11 million online payments made to government as well.

ANZ bank will also supply the NSW Government with “de-identified aggregated data pulled from consumer transactions” to streamline internal decision-making around the investment of public funds, according to iTNews. The data will include demographic, travel and spending activity information during major events.

Digital buy-in across public sector financial services

At the end of 2018, former ANZ General Manager Michael McNamara was selected for the role of Chief Information Officer (CIO) in the Department of Human Services (DHS), as part of an agency-wide digital overhaul. McNamara’s appointment suggests that DHS’ ongoing digital transformation will take cues from ANZ’s recent reform through its continued overhaul of key service delivery functions.

DHS is currently preparing to move its new SAP-based centralised payments platform live. The new platform – ‘Payment Utility’ – has come at the halfway point of the department’s million-dollar Welfare Payment Infrastructure Transformation and will be used to manage the $170 billion in payments which the department receives through its Centrelink master program each year.


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