Personal Financial Services
This presentation is the property of its rightful owner.
Sponsored Links
1 / 28

Personal Financial Services - Achieving growth PowerPoint PPT Presentation


  • 101 Views
  • Uploaded on
  • Presentation posted in: General

Personal Financial Services - Achieving growth. Peter Hawkins Head of Personal Financial Services 18 July 2000. Today’s agenda:. Specialisation and growth 1)Product businesses 2)New customer businesses 3)Tomorrow’s growth. 1) Specialist product businesses. Cards Mortgages

Download Presentation

Personal Financial Services - Achieving growth

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Personal financial services achieving growth

Personal Financial Services

- Achieving growth

Peter Hawkins

Head of Personal Financial Services

18 July 2000


Personal financial services achieving growth

Today’s agenda:

Specialisation and growth

1)Product businesses

2)New customer businesses

3)Tomorrow’s growth


1 specialist product businesses

1) Specialist product businesses

  • Cards

  • Mortgages

  • Funds Management and Insurance

  • anz.com


In november 1997 we separated product from distribution

In November 1997 we separated product from distribution:

  • It has delivered:

    • Higher profits/ lower costs

    • Strong individual product businesses

    • Doubled sales

    • 200,000 more customers

    • Increased share of wallet

  • More recently, customer segmentation was overlaid on distribution


Financial performance

Financial performance

Income

Profit

$m

%

%

Net Interest Margin (LHS)

Non Interest Income (RHS)

Provisioning

$m

Costs

%

%

Cost to Assets (RHS)

Cost to Income (LHS)

Actual Credit Costs

Economic Credit Costs


Cards

Cards

%

Share of Personal Profit

Key Initiatives and Strategy

  • Continue to improve and leverage QTV programs

  • Build leadership in e-commerce acquiring and other high growth merchant acquiring segments

  • Implement common operating platform (Vision Plus) in Australia and New Zealand

  • Acquisition through cross-sell to other Personal customers

  • Leverage acquisition of EFTPOS New Zealand

Cards Growth

AUSNZ

Cardholders (m)2.00.3

Cards Issued (plastics)2.90.4

Outstandings ($b)2.40.3

(Growth)35%12%


Mortgages

Mortgages

Market Share

%

Share of Personal Profit

Apr-00

Key Initiatives and Strategy

New Sales by Origination Source

1H 2000

  • Leading products

  • Broad distribution

  • Active database marketing campaigns

  • Cost management

    • 4 account processing systems into 1

    • 4 processing centres into 2

    • 24% reduction in cost/asset ratio (1st half)

    • 28% annual increase in Auto Approval rate

  • Funding flexibility

Origin 14%

ANZ Network

63%

Third Party

Introducers

23%

ANZ Branded


Mortgages1

Mortgages

Channel Comparison

New Lending Mortgage Margins

%

%

Origin

TPMI

ANZ Network

Drawdowns

(#)

Drawdowns ($)

  • Cross sell of third party mortgages has been effective:

    • 86% customers have an ANZ deposit account

    • 51% have an ANZ credit card

Average Loan Life EVA

$

Index 100


Funds management

Funds Management

Share of Personal Profit

Funds under Management

$m

Ranking

Assirt Retail FUM#7

Assirt Retail Inflow#10

New experienced management team in place

15000

10000

5000

0

Mar-99

Sep-99

Mar-00

Total Retail FUM inc Gateway

Total Retail & Wholesale FUM

  • Strategy

  • Leverage bank distribution strengths/customers

  • Optimise products and features

  • Reposition Asset Management

  • Leverage off universal a/c and targeted marketing to grow IFA channel


Anz com

anz.com

Active Users

Internet Banking Signups

Internet Banking

Phone Banking

Internet Banking Users

% of Total Relationships

Internet Transactions

(% of Total)

Source: Ord Minnett and Roy Morgan Research


Anz com1

anz.com

Online Applications - Credit Cards

Internet Banking Customers

Lending

Deposit

Number

of Products

Profit

Attrition

myanz.com

Balance

Balance

  • Their share portfolio via ANZ’s My Portfolio service

  • Sport news

  • Search engine

  • Weather

  • Favourite links

  • Travel information

  • Their ANZ account balances

  • Australian and overseas news

  • Stock prices, market wrap and watchlist

  • Horoscopes

  • Entertainment news

  • ANZ products and financial tools

ANZ E*Trade


Myanz com

myanz.com


Personal financial services achieving growth

The separation of product from distribution has driven strong performance across products while increasing the network effectiveness

Index


2 new customer businesses

2) New customer businesses

  • Wealth Management

  • Small Business

  • General Banking


We are now moving from a product distribution focus to product and customer focus

We are now moving from a product/ distribution focus to product and customer focus

  • Creation of three customer businesses

    • wealth management

    • small business

    • general banking

  • Keeping strong product monolines

    • operational efficiency

    • functional expertise

    • third party distribution

  • Drive to market leadership for anz.com

3 Customer Businesses

3 Product Businesses

anz.com

Wealth Management

Small Business

General Banking

Funds Management

Cards

Mortgages

Personal eCommerce

Small Business

Wealth Management

General Banking


Develop a wealth management offer that will truly differentiate us

Develop a Wealth Management offer that will truly differentiate us

Strategy

  • Schwab-like offer, but with higher level of lending

  • extensive third party offering for FM & I, in addition to proprietary FM product

  • heavily bricks-and-clicks

  • underpinned by Universal Account CMA

  • offers customers choice from a menu of options

    • advice

    • product

    • value

Share of Personal Profit

Share of High Net Worth Customers

CBA

Westpac

ANZ

NAB

St George

Source: Roy Morgan Research


Recapture small business market share

Recapture Small Business market share

Share of Personal Profit

Strategy

Make separate Business Unit for focus:

  • end-to-end product and service delivery with control over all levers of business

  • full relationship-based offer with segment-specific products

  • develop third-party originator channel

  • coalesce small business e-Commerce

  • integrated seamless offering across relationship, branches, call centres, internet

  • 50,000 customers already online (20%)

Small Business Share of Debt

%

Source: Greenwich Associates


Personal financial services achieving growth

A General Banking business focused on continuing to improve productivity and the customer experience

Strategy

  • optimise sales and service delivery for general banking customers

  • formation of unit with accountability for infrastructure supporting majority of customers

  • control over both distribution and transaction products creates single responsibility for customer experience and migration to self-serviced channels

  • leverage information analytics capabilities for sales efficiency

Share of Personal Profit

Share of Mass

Customers

Branch Activity

CBA

WBC

NAB

ANZ

St George

Branch

Withdrawals (m)

No. A/cs

(m)

Transactions

per A/C


3 tomorrow s growth

3) Tomorrow’s growth

  • Building capabilities


Personal financial services achieving growth

The CRM capabilities we are building deliver a comprehensive, end-to-end revolution of the customer experience and relationship

  • Create a seamless customer experience across channels, products, service and sales

  • Recreate relationship management by providing insightful customer information at all touch points

  • Change the selling paradigm: “when they’re in your space, be ready to sell”

  • Focus proactive selling through rich profiling

  • Align credit and pricing decisions to the risk, behavioural, and value profile of the customer

  • Deliver straight through processing to both improve service levels and reduce costs

Our

Objectives


The customer database provides a mature data warehouse environment

Front Office

Customer Database

Campaign

Management

Customer

Decision

Strategies

Channels

Operations

Customers

The customer database provides a mature data warehouse environment

  • established 1996

  • group-wide coverage

  • comprehensive customer and product data

  • customer profitability


Campaign management provides comprehensive data analysis and modelling

Front Office

Customer Database

Campaign

Management

Customer

Decision

Strategies

Channels

Operations

Customers

Campaign management provides comprehensive data analysis and modelling

  • continuous marketing capability

  • Valex campaign management tool

  • multiple daily targeted campaigns

  • trigger events


The customer decisioning engine provides central customer management capability

Front Office

Customer Database

Campaign

Management

Customer

Decision

Strategies

Channels

Operations

Customers

The customer decisioning engine provides central customer management capability

  • Strata software decision engine

  • sophisticated models to:

    • profile customers

    • predict behaviour

    • create actionable decisions


Personal financial services achieving growth

Customer value drives how the customer base is segmented and managed

Front Office

Customer Database

Campaign

Management

Customer

Decision

Strategies

Channels

Operations

Customers

  • Examples of customer initiatives:

  • propensity of buy models to target offers to best prospects

  • attrition risk predictors to get in early if good customers look shaky

  • target offers of better sales and service to qualifying customers


Personal financial services achieving growth

Front Office

Customer Database

Campaign

Management

Customer

Decision

Strategies

Channels

Operations

Customers

Enterprise “factory” operations support differentiated selling and servicing by customer segment

  • Examples of operational decisions:

  • make better credit assessments, for a new card, or transaction authorisation

  • replace a “one size fits all” approach to collections with a segmented approach


Customers are afforded multiple access channels and managed to maximise relationship value

Front Office

Customer Database

Campaign

Management

Customer

Decision

Strategies

Channels

Operations

Customers

Customers are afforded multiple access channels and managed to maximise relationship value

  • Sales and Service Platform

    • browser based

    • Getronics

    • multi-channel

  • Processing efficiencies and enhanced customer experience


This is a substantial program which will deliver end to end transformation

This is a substantial program which will deliver end-to-end transformation

  • reengineering and automating servicing and credit fulfilment processes

  • total capital investment in excess of $200 million

  • deployment of over $100 million in improved infrastructure to deliver a paperless environment

    • communications bandwidth to branches

    • specialist peripherals such as scanners

    • high performance workstations at all touchpoints

    • windows 2000

    • middleware

  • payback of about 2 years

  • sales uplift of 5% in business case

    • other organisations have experienced up to 25% uplift

  • implementation begins November 2000, completed by end 2001


Summary personal financial services

Summary: Personal Financial Services

  • Specialist Product Businesses well established

  • Customer Businesses being elevated

  • Capabilities being built to drive tomorrow’s growth


  • Login