The global financial crisis changed investor attitudes, with ANZ Global Wealth and Private Banking now planning to develop its technology strategy to meet demand for clarity.
ANZ’s Global Wealth and Private Banking division is eyeing innovation and productivity as the way to sustained growth.
“The loss that [investors] suffered and the blow to their cost base mean they want to be more engaged in the investment process,” ANZ Global Wealth and Private Banking chief executive Joyce Phillips said. “They want to know more and they want more control. New government regulations are helping to make that happen but the bottom line is they have become much more focused on advice,”
She explained that the business’ new innovative strategy would take advantage of these market shifts.
“It allows us to have a nimble and innovative approach to meet the changing needs of customers in the new market opportunities. Our aspiration for ANZ Global Wealth and Banking is to find new ways to engage with customers,” Ms Phillips said.
The business plans to grow relationships with existing ANZ customers, drive higher returns and value from existing businesses and simplify the business and leverage global capabilities.
Innovation such as Smart Choice direct super, transformation of advice and new approach to growth segments are some of the moves to align with new guiding principles.
The current plan has the business investing $80-100 million per year.
“We have the opportunity to change the game. [And we are] ensuring we are engaged for growth across the models,” Ms Phillips said.
“Our strategy is largely organic, [but] within ANZ’s group discipline certainly we would look at acquisitions in this space. If they aligned with our own strategy and delivered appropriate insurance, that would be something we would consider doing to jump start growth,” she said.
Encouraging financial results for ANZ’s new global Wealth and Private Banking division could prompt the bank to look for growth opportunities outside Australia.
Despite flat profit growth year-on-year for the division, performance improved half on half, reflecting better performance in insurance and investment earnings and a decline in costs for the period ending 30 September 2012.
Funds under management (FUM) increased 6 per cent for the division with New Zealand performing strongly up 15 per cent.
ANZ chief executive Mike Smith was clearly pleased with the results. “The second half results are encouraging, they have improved, [we] have gone through a fair amount of reorganisation and are becoming much more focused. So far so good,” he said at a press briefing.
