Exec says bank is committed to competitiveness
ANZ NZ has positively received the Commerce Commission’s draft report on the personal banking services market study, indicating a readiness to collaborate for the development of final recommendations due in August.
Antonia Watson (pictured above), CEO of ANZ NZ, said the bank was committed to competitiveness and consumer benefit.
“Our staff go out every day to provide superior products and services to our customers, and we back ourselves to beat the competition,” Watson said.
Acknowledging competitive pressures
Watson acknowledged Kiwibank as a formidable competitor, noting its significant market share growth, often at ANZ NZ's expense. She underscored the importance of size and scale in banking for capital access, praising New Zealand's robust banking sector’s contribution to a well-functioning economy.
“The scale of our major banks also helps attract capital to the country, and our market structure of five larger banks is consistent with other countries of both similar and larger sizes,” she said.
“There are numerous banks and non-bank providers in New Zealand, which all provide an important source of competition. In a country of our small size, we have a comparatively large range of potential providers of core personal banking services to choose from.”
Advocating for open banking
ANZ NZ expressed support for accelerating open banking initiatives, anticipating that such moves will foster better collaboration with fintechs and enhance product and service offerings for customers. This stance comes as the industry awaits consumer data right legislation, with Watson stressing the potential for open banking to benefit consumers significantly.
Regulatory balance and consumer education
The conversation about the regulatory and legislative environment’s role in balancing financial system stability with competition benefits was deemed crucial by Watson.
“There’s always a balance regulators and legislators have to strike between stability and safety of the financial system and the benefits to bank customers of healthy and strong competition,” she said.
Watson also showed interest in exploring solutions to bolster consumer education about banking options, highlighting the link between financial literacy and economic health.
“It’s generally acknowledged that financial literacy is low in New Zealand and anything that improves that is good for consumers and the overall economy,” Watson said.
ANZ NZ disputes some report findings
While welcoming the draft report, ANZ NZ voiced disagreement with certain findings, particularly the suggestion that major banks face insufficient competition and enjoy high profitability compared to international counterparts.
Watson said she looks forward to discussing these concerns with the commission, citing Reserve Bank (RBNZ) figures to argue for the competitiveness of ANZ NZ’s pricing and the global parity of its profitability metrics.
“If our pricing isn’t competitive, customers move to other providers,” she said. “RBNZ figures show that in some months in New Zealand more than $1 billion worth of home lending – or more than 20% of total mortgage monies advanced – switches.
“Profitability of New Zealand banks is about the same as similar banks globally. Our return on equity is around 12%, which is also in line with many other New Zealand companies in other industries.”
Click here to access the ANZ NZ media release. You can also read ANZ NZ’s submission to the Commerce Commission.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
