The bank will also exit US community banking in American Samoa and Guam
ANZ has announced that it will strengthen its focus on building a world-class digital bank in its core Pacific markets of Fiji, Samoa, Vanuatu, Cook Islands, Tonga, Solomon Islands, and Kiribati, as well as Timor-Leste, following a decision to exit US community banking in American Samoa and Guam.
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“In our core Pacific markets, where we have been for more than 141 years, ANZ plays an important role in connecting customers to the growing trade and investment opportunities in the region, as well as providing industry insight and links into our home markets of Australia and New Zealand,” said Tessa Price, ANZ regional executive Pacific. “In American Samoa and Guam, ANZ’s competitive position is not as compelling. US community banking is not in line with ANZ’s key strengths, which is impacting our ability to meet the needs of customers in American Samoa and Guam.”
ANZ plans to wind down its business in American Samoa over the next six months while in talks with other parties about the future ownership options for its business in Guam.
“The Pacific remains a key part of ANZ’s international network,” Price said. “By focussing our resources on our core Pacific markets, we can continue to build a world-class digital bank in the region and deepen the support we provide to customers.”
Clarke Schaumann, ANZ country head for American territories, said the decision was not made lightly. He also said customers in American Samoa “will be sufficiently supported” after ANZ closes its business.
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“American Samoan residents will continue to have the option to open accounts with off-island institutions online, including with FDIC-insured banks and NCUA-insured credit unions,” Schaumann said. “We encourage people to explore their options through the BankOn initiative at covidbanking.joinbankon.org. Customers in American Samoa can also continue to access cash through the Territorial Bank of American Samoa (TBAS) ATM network.”
Schaumann also said that while ANZ’s business in Guam is strong, it “needs ongoing investment and focus for it to achieve its potential.”
“While ANZ has invested around AUD30 million in projects and systems in its core Pacific markets over the past six years, due to legal and regulatory restrictions, Guam has not been able to benefit from this, which is why exploring future ownership options is attractive,” he said. “Sale criteria would include maximising job retention for staff and a commitment to the economic, social, and environment development of the territory.”
Price said ANZ remains open for business in its core Pacific markets and will continue to be doing business “that will support customer aspirations and help grow the communities we’re in.”
