Westpac Boosts Small Business Lending with Legal Services

Westpac announces a new initiative to support small business growth by offering customers a year's worth of basic legal services, potentially reshaping its competitive standing in the business banking market.

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Pick & Scroll News
February 05, 2025

Westpac announces a new initiative to support small business growth by offering customers a year's worth of basic legal services, potentially reshaping its competitive standing in the business banking market. This bold move comes as the bank aims to expand its lending portfolio while enhancing customer value through non-banking perks.


Westpac has invested $10 million in Lawpath, a leading Australian legal services provider, to offer small business clients a 12-month subscription that includes access to legal documents and business registration tools. This strategic partnership reflects Westpac's focus on broadening value-added services for its customers and bolstering its small business banking proposition.


The bank's leadership transition within the business unit also highlights its growth ambitions. Paul Fowler is set to lead the business bank mid-year, replacing interim leader Peter Herbert. Westpac has been regaining ground in the small business sector, with a current market share of 15.8%, compared to rivals CBA (18.7%), NAB (21.2%), and ANZ (14.6%). Recent data from regulators shows Westpac's business banking division grew by 3.9% over the past three months, outperforming its competitors.


Westpac has further attracted customers by offering discounts and partnerships beyond traditional banking. These partnerships include deals with Optus for internet, MYOB for accounting software, and Uber for rides, resulting in potential savings of over $14,000 annually for SME clients. This approach aims to create a holistic ecosystem for small businesses, positioning Westpac as a value-driven partner.


Analysts suggest business lending could drive earnings growth for major Australian banks, potentially boosting profits by as much as 25% if lending increases across the sector. Westpac’s latest initiative, combined with its referral agreements and technological advancements from Lawpath, positions it well to strengthen its foothold in the competitive business banking landscape.