Australian banking major is now actively targeting both female and do it yourself investors as it seeks to expand its private banking and global wealth management business.
ANZ for a long time has lagged its big four rivals in wealth management and is seeking to remedy that situation by cutting the price it charges for super products , making investments in technology and increasing the number of financial planners.
The move comes as no surprise, according to JP Morgan, over the last 10 years, wealth management has made up roughly 11 per cent of revenue at rival banks whilst at ANZ that figure is just 8 per cent.
Although ANZ is the market leader in life insurance products, very few of the lenders customers choose to invest in the lenders wealth management products. Just 14 per cent of ANZ customers buy its wealth management products and those customers are said to be sticky, unlikely to leave and likely to spend significantly more with the lender.
JP Morgan analysts say ANZ has much room to improve over the medium term given the fact that it is starting from a relatively low base.
Other analysts are a little less optimistic saying only time will tell whether the lender is successful at improving its wealth management business, though the bigger lenders tend to benefit from the perception they are safe to invest with.
Some members of the community are skeptical that banks offer the most suitable investment products rather than seeking to sell their own, and argue the majors have difficulty retaining salaried financial planners who learn the business and then move to other companies.
Joyce Phillips who runs ANZ’s global private banking and wealth management business says the attitudes and behaviour of most investors changed in the aftermath of financial crisis.
”The losses they suffered and the blow to their confidence to companies in the wealth-management industry mean they want to be more engaged in the investment process. They want to know more and they want more control. The bottom line is they have become much more focused on advice.”