ANZ - On the money

Our third party distribution strategy is something we have invested in for the long term. We understand what is important to brokers in terms of how they deal with their customers, so we aim to provide them with what they need. We have significantly invested in the broking channel and I believe this is the first year we have got it right.

According to our data, this year, brokers recommended ANZ products above those of any other lender. As such, our volumes for the last 12 months were significant.

Often, brokers will recommend lenders because they have an amazing offer, but then they can’t handle the workload. We all cry out for business, but when you can’t handle the workload, brokers lose respect for you and your operations. We have proven that we can handle the workload. On top of that, we have strengthened our processes and our policies.

On the policy side of things, we have spent a lot of time making sure we are clear, transparent and easy to work with.

On the process side, we have improved the way we use our back office. Brokers are now getting an answer within 24 hours. We are working so fast that brokers are actually astounded. It might sound simple, but the combination of getting our policy and processes right is what makes the business successful.

We have also looked at what we can do to improve the industry as a whole. It is not something we have focused on in the past; it has always been about the classics. As a bank and a key player in the industry, it is important for us to start thinking about what else we can bring to the industry. One of the things we have introduced is the ANZ broker workshops – they have proven incredibly successful and are definitely something we have seen merit in doing.

ARE YOU PLANNING ANY CHANGES TO THE STRATEGY IN COMING MONTHS?

Our processes won’t change – that is for sure.

As mentioned, we finally feel as though we have got our processes right and, as such, have no plans to change them in the future. Instead, we will focus all our attention on deepening our relationships with brokers. We will continue to do what we can to help our broker partners and to ensure that working with us is easy. For example, valuations are a core part of our broker proposition.

The ability for brokers to order valuations upfront is a real value add for broker/customer relationships. With all great things, however, some people do not use them in the spirit in which they were intended. We need to make sure valuations continue to be used [in the right spirit] so that our value proposition remains solid. We will continue to work on our proposition over the next 12 months.

HOW IMPORTANT IS THE THIRD PARTY DISTRIBUTION CHANNEL TO ANZ?

It is not a question anymore. More than 40 per cent of our customers choose to use a broker, making the third party distribution channel a core part of our distribution strategy. We will continue to invest in communications with brokers, invest in BDMs and in our other support staff.

YOUR SERIES OF WEBISODES ARE HELPING BROKERS TO EXPAND AND ENHANCE THEIR BUSINESSES. HOW IMPORTANT IS IT FOR BROKERS TO INVEST IN EDUCATION?

If you are not moving forwards, you are effectively moving backwards. As a bank, we need to look at ways in which we can improve this industry as a whole.

NCCP was a big step forward for everyone and it really enhanced professionalism in this industry. On top of that, there is a lot of talk at the moment around further education and what that means. We have taken a step in that direction and looked at what we can do to help.

For us at ANZ, it is all about drawing on the resources we have at hand to see what we can deliver to the industry. We launched the webisode workshops for this reason. We floated the idea with our brokers and they gave us very positive feedback, including great subject matter. The topic of greater education in the industry is an interesting one, and my view is that discussion of the diploma has also been interesting. There are so many other NCCP-related things going on at the moment and brokers are coming to terms with a whole new way of doing business.

What’s next for the industry is [the question of] how we deliver the next level of professionalism. I am not wedded to a particular timeframe, but I can see the member base is divided. If not the diploma, what else is next ... clearly we cannot stand still.

HOW HAVE BROKERS RECEIVED ANZ’S REVIEWING ITS RATES OUT OF CYCLE WITH THE RBA?

I think it has been a mixed reception. ANZ went down this path in the first place to provide greater transparency around how we make decisions on interest rates.

The market is very uncertain at the moment and this provides borrowers and brokers with clarity and certainty around when we make rate changes. The good brokers that I talk to see that. They have taken the information we have provided them and put that on their own website as a customer education tool, which I think has helped the conversations we have with borrowers.

When I have a conversation with a broker who is not in the supporter camp, by the time I have finished the conversation with them, they usually are. Once you lay the facts down on the table and discuss why we do what we do, they can’t argue with the logic.