ANZ Balks @Australia Post's Deal - Claims UNFair For Them!

As Licensees who must absorb the underfunded tasks in our LPOs, we know only too well that bank@post is most often a loss leader for us. So it is simply astonishing business from the ANZ, that they feel hardly done by, being asked to contribute in equal measures with the Big 3, so we can be paid fairly for the bank@post work we have been providing for years for our communities!

Full credit to Australia Post's CEO, Christine Holgate, and the BIG 3, CBA's CEO, Matt Comyn, NAB's CEO, Andrew Thorburn and Westpac's CEO, Brian Hartzer, and their teams that put this plan together for the nation, for supporting communities across Australia with your contribution, ensuing the LPO network can continue to provide essential services to our communities, with your financial support instead of out of Licensees pockets.

There are tens of thousands of disappointed ANZ customers who have been using bank@post since ANZ came on board, now facing the prospect of being left out in the cold, as ANZ and the CEO, Shayne Elliot, drag their collective feet about contributing to this access funding to keep the bank@post network sustainable. 

To put that into perspective:

From Business Insider Oct 26, 2017:

The ANZ Bank posted a 18% rise in annual cash profit (for 2017) to $6.94 billion as the bank restructures its business to be more agile, bringing down costs for the first time since 1999.

“(For the) first time since 1999 we’ve actually had absolute costs come down,” says CEO Shayne Elliott.

“What’s most pleasing about 2017 is we have not only delivered better outcomes for shareholders, we are also making genuine progress in delivering better outcomes for customers and in rebuilding community trust.”

Read more at https://www.businessinsider.com.au/anz-bank-lifts-cash-profit-18-to-almo...

No prizes for guessing how he has managed to reduce his costs, because Licensees know he just passed them onto us! Rebuilding community trust? Better outcomes for customers? I think that might be wishful thinking!

Even more concerning is the documents provided to the Financial Services Royal Commission by ANZ, which set out the potential future footprint for ANZ customers! Although the documents are heavily redacted, you can gain a lot of insight with what is left. ANZ Bank clearly has bank@post as their fall back position where they close branches, yet cries foul over equal contributions from the Big 4. 

https://financialservices.royalcommission.gov.au/public-hearings/Documents/exhibits-2018/5-july/EXHIBIT-4.206.pdf 

The document headed - Branch Options.

Excerpt Page 1: Furthermore, there is a level of execution risk inherent in a sale pathway This is in contrast to the execution risk profile of closures, where we now have in place a credible alternative servicing model for exited locations, including Bank@Post, and a proven methodology for managing such exits. 

https://financialservices.royalcommission.gov.au/public-hearings/Documents/exhibits-2018/5-july/EXHIBIT-4.207.pdf 

The document headed - Accelerated Branch Closures.

Excerpt Page 2 heading: Around 70% of the proposed branch closures are lower contributors in regional and remote locations, as well as some metro sites where the speed of digital adoption by customers will likely be high 

And the CEO, Shayne Elliot states on the Business Insider in Oct 2017 -“What’s most pleasing about 2017 is we have not only delivered better outcomes for shareholders, we are also making genuine progress in delivering better outcomes for customers and in rebuilding community trust.” That is pretty farfetched after reading these submissions.

ANZ is the only Big 4 Bank that has balked at contributing $22m to sustain this essential service, and the cost to them would be less than 1/2 of 1% of their $6.94B net profit for 2017!

Simply astonishing business from the ANZ! If you are an ANZ customer that is not living on an app, maybe time to start packing up and getting ready to move to one of the more customer focused BIG 3.

Comments

Phil Atellic's picture

The ANZ in my town closed their branch which was costing them $250,000 + pa so now it's me or drive 100k

Bob's picture

Can't make the links work on my phone or computer. Maybe I shouldn't read it anyway.

LPOGroup's picture

The links have been fixed so they work now. But the original source of the documents are as below.

If you google financial services RC then search for the doc IDs 4.206 & 4.207 you should be able to get them that way. Unless they have been restricted, which wouldn’t be a surprise. Pretty sure they were supposed to be buried deep in the publications.

Bob's picture

Got it. This doesn't copy and paste very well but it shows a pretty disturbing attitude towards bank@post. They're just using us.

APPENDIX 4: progressing towards a more comprehensive
solution after branch closures

Banking
services
offered
Limitation
Solution
being
developed
bank@post
• Offered via -3,600 Australia Post outlets
• Used by > 70 other financial Australian institutions,
including the other majors
• Card-based transactions available are:
- balance enquiry
- cash deposit (up to $5,000/day cash, up to $1m
total)
- cheque Deposits (99 cheques per deposit)
- cash withdrawals ($1,000/day)
- bar-coded deposits (CACHE only)
• Whilst transaction volume is higher than
expected (24k vs 14k/wk), hence annualised cost
$3.Gm vs. $1.Sm
·Work is underway to solve for bar-coded deposits for
CAP customers and deposit-only card for multi-
signatory accounts
• Costs paid to Australia Post are not fully recouped
from customers
·Work is underway to solve for bar-coded deposits for
CAP customers and deposit-only card for multi-
signatory accounts
• Prioritising funding and resourcing for this work is
challenging
• Geospatial is mapping high use of bank@post where
ANZ branches should be servicing1
AT Ms
• Only traditional (not Smart) ATMs are currently be
deployed offsite
• Basic cash withdrawals
• Basic account services
+ Assisted Service
ATM + Smart ATM - Consumer Cash
• card withdrawal • card deposit (notes & • card deposit - coin,
• balance enquiry cheques) CACHE
• account transfer • no card deposit (notes & • no card deposit -coin,
• pin change cheques) CACHE
• card withdraw
denomination choice
• pre-staged 'goMoney' no
card withdrawal
• Offsite A TMs cannot be manually cleared daily on a
cost effective basis
• Smart A TMs capture but do not transmit details on
cheques deposited for clearance
• To avoid different service levels for different ATMs,
Smart ATMs are not being deployed offsite
• FY'17 investment has been secured to electronically
clear cheques deposited to Smart ATMs
• This will enable aligned cheque clearance times and
remote deployment of Smart A TMs
1. 40% of transactions are in urban locations. 40,600 individuals with 65k transactions, 6,800 small biz/25k transactions, 359 regional business bank/1,258 transactions