ANZ Simplifies its Wealth Management Business
ANZ seeks to align the distribution of wealth products and services within its retail and commercial businesses
The banking giant Australia and New Zealand Banking Group Limited (ASX:ANZ) introduced a streamlined approach to its wealth management services, which will be effective from 12th March 2016.
New Approach Aims at Reducing Costs
ANZ seeks to align the distribution of wealth products and services within its retail and commercial businesses. The bank also aims to enhance its insurance, superannuation and investments product businesses in Australia in order to improve returns and capital efficiency.
The bank aims to shift its ANZ-branded distribution, which includes ANZ Financial Planning, to be a part of its Retail Distribution segment in Australia. In the New Zealand region, the bank’s wealth segment will be a part of an expanded retail, business banking and wealth team. The bank’s remaining insurance, superannuation and investment activities in Australia are to be formed into a focussed business under the name ‘Australia Wealth’.
ANZ Chief Executive Officer Shayne Elliott commented on the proposed changes: “These changes generate more value for our 8 million customers by making it simpler and more convenient to access wealth solutions through closer coordination and alignment of our wealth and retail products. The changes help us unlock more potential from wealth and reduce complexity, duplication and cost across our business.”
Mr. Elliot further stated that the bank has also simplified its business operations in terms of capital allocation. Mr. Elliot explained that 40% of the capital has been invested in its retail and commercial business, while 50% has been allocated to its institutional and Asia-Pacific business and the remaining 10% has been allotted to the wealth management segment.
New Group Executive in Digital Banking
ANZ announced the appointment of Ms. Maile Carnegie as the Group Executive in Digital Banking. Prior to this, she was the Managing Director of Google in the Australian and New Zealand region.
Recently, the bank recently released a quarterly trading update showing a 5% rise in cash profit to $1.85 billion. ANZ however noted its result was partially impaired by the slowdown in the mining sector, among other factors.
Author: Simon Herrmann
Mar 02, 2016
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.