The ANZ's Shayne Elliott: The 2 big challenges facing Australian banks

Shayne Elliott, the CEO designate of the ANZ Bank, wants to build a bigger mortgage business, particularly in New South Wales.

The bank, which for the last eight years under Mike Smith, has been building its business in Asia, has been outperformed by the other three major banks in the home loan market.

“We used to joke we were the No. 5 bank of four in NSW, which is true, and it’s not just Sydney, it’s right across the state. NSW is one of our priorities,” he told the AFR.

“We have the most diverse book of all the four banks and have the least weighting towards mortgages and we can afford to grow it.”

Elliott named digital disruption and improving culture and ethics in the wake of banking scandals — including manipulation of interest which saw seven ANZ traders staff stood down and misconduct by financial planners — as the two big challenges for Australian banks.

“Largely due to the GFC, rethinking how we operate and interact with our customers is going to be significant,” Elliott said in an interview with the AFR. “It’s about restoring the industry’s reputation because we are a trust-based business.”

Elliott says the use of mobile phones as banking platform would allow ANZ to open “a whole new relationship with our customers”.

“The challenge for the industry is this massive transformation around digital,” he says.

Elliott takes over from Smith on January 1.

There’s more of the interview HERE.

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