Rather than make its own device,he said the bank had opted for a software solution that would compete “very well at the low end with a Square terminal and a Zeller solution.” Apple’s iPhone cannot replace terminals in this way because the tech giant restricts access to a piece of hardware that facilitates payments.

Business banking is regarded by the market as NAB’s“crown jewel,” and chief executive Ross McEwan last year referred to it as NAB’s“heartland.” CBA is also seeking to expand aggressively in business banking,including through its investment in payment technology.

De Bruin,who joined Westpac in 2021,said Westpac was close to CBA and NAB in terms of the number of small business customers and transaction accounts,but it had historically lagged in lending.

“If you were to look at where we underperform,we’ve underperformed in particularly small business lending,” de Bruin said.

“When you look at the difference between us and NAB,it’s not that they have more customers,it’s really that they’ve had a stronger appetite over a long period of time to lend to small businesses.”

Westpac also signalled its growth ambitions in the sector last year when it considered buying Tyro Payments,before determining this was not in the interests of shareholders. De Bruin said its preference was for organic growth,though he also left the door open to “tactical capability bolt-ons.”

The battle for business banking market share comes lenders are flagging higher bad debt charges due to rising interest rates,with Westpac chief economist Bill Evans on Friday raising his forecast for the peak cash rate to 4.1 per cent.

Echoingcomments from Westpac chief executive Peter King earlier this month,de Bruin said more customers were likely to be squeezed if rates increased as much as expected,and this would drive some customers into hardship.

“If we get another three rate rises,every rate rise just takes another bit of money out of discretionary income,so I think that more people will find themselves struggling if we have another three rate rises,” he said.

“But it’s not a general problem,I think generally our portfolios are going to be fine,and we have the capacity to help everybody that needs to be helped through this and we’re ready to do that.”

Business banking brought in $918 million in profits for Westpac last financial year,and was its third-biggest source of cash earnings after consumer banking and its New Zealand operation.

Despite signs of weaker spending in sectors such as accommodation and retail,de Bruin was upbeat about the conditions facing small business as a whole.

“In general,we see that overall the market remains resilient and strong. I’m not sure I’d use the word buoyant,but there’s no lack of confidence in the vendors we’re talking to. There is still strong credit demand,” he said.

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