BankWest will create a new IT division due to the amalgamation of its existing IT services unit and its wholly owned subsidiary CBSIS Ltd.
The bank said the new Information Technology Division will bring together the two groups to form a new IT enterprise with the capacity to meet internal and external needs, including contributing significantly to the needs of majority shareholder HBOS.
Group managing director Terry Budge said: "The new single division will enable us to provide IT support and strategic direction more effectively and efficiently as we continue to seek and grow new national markets."
Budge said the continuing demands on IT services, including the core banking system, had also contributed to the decision to cease marketing this product and to concentrate on meeting the bank's requirements for the system, as well as those of HBOS.
"The core banking system continues to be a cornerstone of our ability to provide leading edge products and services in a highly competitive market.
"In addition to expanding its capabilities to meet BankWest's business growth, we will continue to service the core banking needs of HBOS."
He said the system attracted interest from a number of organisations but "in the end it was decided to protect our competitive advantage and devote resources to our own needs".
"BankWest has developed a clear strategy to expand nationally and to maximise the value of our dominant WA franchise, and success in these areas will be underpinned by our ability to meet extensive IT requirements of our businesses.
The Bank said a general manager will be appointed soon to head the division.