Insights

How ANZ plans to fend off competition from other ASX 200 bank shares with fresh tech

There’s a tech race going on in the banking sector.
The post How ANZ plans to fend off competition from other ASX 200 bank shares with fresh tech appeared first on The Motley Fool Australia. –

Owners of Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares may want to know how the big four S&P/ASX 200 Index (ASX: XJO) bank share is planning to get ahead of rivals with technology.

There is a lot of competition in the space. Not only are there the other big four ASX banks like Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Commonwealth Bank of Australia (ASX: CBA), but there are other challengers as well. Bank of Queensland Limited (ASX: BOQ) and Macquarie Group Ltd (ASX: MQG) are two other competitors.

But, ANZ is hoping to win customers while doing nothing. It’s putting effort and money towards upgrading its technology.

Maile Carnegie, group executive of ANZ’s Australian retail, wrote in a recent blog post:

While a rising interest rate environment will provide a temporary reprieve for banks, in the longer-term other trends will have more bearing on returns.

Those trends include intense competition in the lending market place, rising regulatory and compliance costs and capital overlays. We don’t see any sudden lessening in competition, quite the opposite. And it’s also unlikely we’ll suddenly be able to cut our regulatory and compliance costs.

Technology focus

ANZ is trying to improve its offering to customers by improving its speed of product to market, such as getting home loans to customers more quickly.

The big four ASX 200 bank share has been trying to simplify processes and “make it more friendly” for customers. The bank has had to fundamentally rebuild itself with its ‘ANZx’ program.

Carnegie said:

The ANZ Plus platform we launched recently is a result of that rebuild and is about providing better, faster, cheaper and more effective controls for this business as well as keeping pace with what our customers need.

We decided to rebuild half a century of systems technology and processes rather than wallpapering over the cracks. We did this because we knew tacking on automated controls to legacy systems just wasn’t going to work. It required a different solution.

The rebuild of the underlying technology is now complete and we are starting to see the rebuild of the customer applications that sit on top, starting with ANZ Plus savings and transaction accounts.

ANZ is expecting to be able to give customers more features and functionality in the coming weeks, followed by other offerings, including home loans. The big four bank plans to have beta testing for loans in late 2022.

The ASX 200 bank share thinks the new offering and underlying technology will help customers.

Latest view on the bank

One of the most recent opinions has come from Morgan Stanley. It reduced its ANZ share price target to $24.30, with a rating of ‘equal-weight’, which is like a hold rating.

The broker noted that ANZ’s net interest margin (NIM) could rise as the RBA increases interest rates. However, it could cause problems for the loan book in terms of arrears.

The post How ANZ plans to fend off competition from other ASX 200 bank shares with fresh tech appeared first on The Motley Fool Australia.

Should you invest $1,000 in Australia And New Zealand Banking Group Ltd right now?

Before you consider Australia And New Zealand Banking Group Ltd, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Australia And New Zealand Banking Group Ltd wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of January 13th 2022

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

What’s the outlook for ASX 200 bank dividends?
Worried about a US recession? Here’s what the ASX 200 banks are forecasting
How does the Macquarie dividend stack up against the ASX big four banks?
The ANZ share price has tumbled 24% from its 2022 high. Is it time to pounce?
Why are ASX 200 bank shares having such a cracking start to the week?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Free Share Allocation Reward Levels

STARTER

Class
$ 2,500 Deposit & Trade
  • REWARD^
  • 1 x Marathon Oil Corporation (NYSE:MRO)

ECONOMY

Basic
$ 5,000 Deposit & Trade
  • REWARD^
  • 1 x Pfizer Inc (NASDAQ:PFE)

ECONOMY

Standard
$ 10,000 Deposit & Trade
  • REWARD^
  • 1 x Amazon.com Inc (NASDAQ:AMZN)

ECONOMY

Plus
$ 25,000 Deposit & Trade
  • REWARD^
  • 2 x Apple Inc (NASDAQ:AAPL)
POPULAR

BUSINESS

Class
$ 50,000 Deposit & Trade
  • REWARD^
  • 4 x Apple Inc (NASDAQ:AAPL)

FIRST

Class
$ 150,000 Deposit & Trade
  • REWARD CHOICES^
  • 12 x Apple Inc (NASDAQ:AAPL)
  • 2 x Tesla (NASDAQ:TSLA)
^Please refer to the Free Share Promotion Terms and Conditions for details.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info