Westpac will shrink its branches and make them more high-tech in an effort to attract one million new customers and lift revenue.
But the country's second-largest lender also recognises customers still want to speak to a human being.
Seven months after taking the reins from Gail Kelly, chief executive Brian Hartzer has laid out his plans to grow profit amid a slowing economy and fragmenting financial industry.
He wants Westpac to do more to help customers, and deliver that help faster and more efficiently.
"We're talking about this ambition of becoming one of the great service companies, to be thought of in the same league as companies like Amazon, or Disney or Ritz-Carlton," he told an audience of analysts on Monday.
Mr Hartzer wants to attract one million new customers by the end of 2017, an increase of about 10 per cent on current numbers.
To help achieve that, annual investment will be boosted by 20 per cent to $1.3 billion, with branches and online products a key focus.
Westpac has already been downsizing branches to "24 hour lobbies" featuring smart ATMs and other new technology, and these will make up more than half of all branches by 2018, Mr Hartzer said.
"We expect that over the next three years about 550 of our branches will have been converted to the new format," he said.
"So yes branch numbers will continue to come down."
No detail was provided on the potential impact on staff numbers, but Mr Hartzer said smaller branches should mean lower costs and higher returns.
"They are more convenient for business customers, and the people in the branches are spending more of their time having high quality conversations with customers that actually generate revenue," he said.
Many businesses still rely on branches for cash and cheque transactions and retail customers are keen for face-to-face personal advice, which is where video conferencing will play a big role, Mr Hartzer said.
"For the foreseeable future there's a large part of the population who is going to want to see a human being when they need to make a big important financial decision or they want to get some advice," he said.
"Video is very powerful, because very soon we will be able to demonstrate the promise to our customers that you can walk into any of our locations and immediately see a specialist in any of our capabilities in any spot."
Despite increased spending, Westpac expects more efficient branches and online operations will keep its expense growth at between two and three per cent each year.
Questioned by analysts if that cost target was aggressive enough, Mr Hartzer said Westpac had to invest in its business to adapt to the changing banking industry.
Westpac shares dropped 14 cents to $29.80.
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