Australia's big four banks could be forced to close up to 30% of branches, according to a global banking expert... ANZ’s incoming boss has new D.I.Y. task: Remodel Asian business...
Big cuts predicted for big four's branches
A Boston-based company has suggested that the next three to five years will put pressure on Australia's big four banks to close up to 30% of branches, according to the Sydney Morning Herald.
The pressure will come as increasingly more consumers switch to mobile self service options and social media companies like Facebook enter the market.
Bain & Company's Boston-based head of global banking Gerard du Toit said, "Visits to Australian bank branches were down almost 10 per cent in the September quarter compared to the same period two years earlier, but the percentage of transactions done via a teller was still twice as high as in the most digitally advanced markets,"
"Everything suggests this market has more branches than it is going to need five years from now. It is hard to say how many closures there will be but global trends indicate a possible reduction of 10 per cent to 30 per cent".
He said The Netherland's ABN Amro has reduced its branch footprint by 50% over the past three years while maintaining its market share.
"ABN Amro have done such a good job of migrating their business to digital and mobile platforms because they started running a campaign about five years ago of having staff in branches focused on training customers up on how to use self-service options," he said.
"Once people are comfortable with using the technology it is more convenient for them and they just stop coming into branches."
ANZ’s incoming boss has new D.I.Y. task: Remodel Asian business
(Bloomberg) -- Australia & New Zealand Banking Group Ltd.’s incoming Chief Executive Officer Shayne Elliott likes to spend his weekends renovating his five-bedroom home in the affluent Melbourne suburb of Toorak.
When he takes over the bank in January, the 52-year-old New Zealander will need to roll up his sleeves for something else -- a re-modeling job on ANZ’s underachieving Asian business, which has been a drag on the bank’s profits and share price in recent years.
Elliott is expected to trim, rather than exit, the overseas operations, which consumed nearly a third of the bank’s capital in the year to September, while accounting for less than one- fifth of profits. But he is seen as much less wedded to the aggressive Asian expansion strategy pursued by his predecessor, the outspoken Mike Smith, who has run the bank for the past eight years.
“Once Smith’s gone, it’s Shayne Elliott’s right to change it,” said Simon Burge, chief investment officer of Above the Index Asset Management, who oversees A$450 million including ANZ shares. “He’s not the bastion for the theme of ‘let’s go to Asia regardless of what it costs.’ I wouldn’t be surprised if he dials back in Asia.”
Elliott, who has been the bank’s chief financial officer since 2012, already flagged his focus on improving Asian returns in October, when the bank reported its slowest growth in annual profit since 2008.
A Boston-based company has suggested that the next three to five years will put pressure on Australia's big four banks to close up to 30% of branches, according to the Sydney Morning Herald.
The pressure will come as increasingly more consumers switch to mobile self service options and social media companies like Facebook enter the market.
Bain & Company's Boston-based head of global banking Gerard du Toit said, "Visits to Australian bank branches were down almost 10 per cent in the September quarter compared to the same period two years earlier, but the percentage of transactions done via a teller was still twice as high as in the most digitally advanced markets,"
"Everything suggests this market has more branches than it is going to need five years from now. It is hard to say how many closures there will be but global trends indicate a possible reduction of 10 per cent to 30 per cent".
He said The Netherland's ABN Amro has reduced its branch footprint by 50% over the past three years while maintaining its market share.
"ABN Amro have done such a good job of migrating their business to digital and mobile platforms because they started running a campaign about five years ago of having staff in branches focused on training customers up on how to use self-service options," he said.
"Once people are comfortable with using the technology it is more convenient for them and they just stop coming into branches."
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ANZ’s incoming boss has new D.I.Y. task: Remodel Asian business
(Bloomberg) -- Australia & New Zealand Banking Group Ltd.’s incoming Chief Executive Officer Shayne Elliott likes to spend his weekends renovating his five-bedroom home in the affluent Melbourne suburb of Toorak.
When he takes over the bank in January, the 52-year-old New Zealander will need to roll up his sleeves for something else -- a re-modeling job on ANZ’s underachieving Asian business, which has been a drag on the bank’s profits and share price in recent years.
Elliott is expected to trim, rather than exit, the overseas operations, which consumed nearly a third of the bank’s capital in the year to September, while accounting for less than one- fifth of profits. But he is seen as much less wedded to the aggressive Asian expansion strategy pursued by his predecessor, the outspoken Mike Smith, who has run the bank for the past eight years.
“Once Smith’s gone, it’s Shayne Elliott’s right to change it,” said Simon Burge, chief investment officer of Above the Index Asset Management, who oversees A$450 million including ANZ shares. “He’s not the bastion for the theme of ‘let’s go to Asia regardless of what it costs.’ I wouldn’t be surprised if he dials back in Asia.”
Elliott, who has been the bank’s chief financial officer since 2012, already flagged his focus on improving Asian returns in October, when the bank reported its slowest growth in annual profit since 2008.
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