After two years of operation, ANZ’s digital retail brand ANZ Plus is growing customer numbers and deposits strongly and is proving its value as an efficient banking platform.
ANZ chief executive Shayne Elliott dwelt on the success of ANZ Plus and its potential during the presentation of the bank’s March 2024 half-year results yesterday, saying it would come into its own when ANZ completes its acquisition of Suncorp Bank and starts migrating 1.2 million new customers to a low-cost digital platform.
Launched in 2022, ANZ Plus has more than 700,000 customers and close to $14 billion in deposits. The customer base is diverse, with 30 per cent over age 50.
More than half (51 per cent) of the new customers who signed up during the March half were new to bank. Customers have taken up the additional tools offered by ANZ Plus, with 47 per cent of customers now using its financial wellbeing feature. A financial coaching service available through ANZ Plus has a net promoter score of 43.
Elliott said the cost of acquiring a customers is 45 per cent lower than “ANZ classic” and “cost to serve” is 30 per cent lower. Cost to serve is calculated with reference to distribution, operating and product costs. This efficiency difference is growing as ANZ Plus grows.
It is still a work in progress. The ANZ Plus digital home loan was launched last November and at this stage is only available to existing customers for refinancing of owner-occupier loans. It is restructured to single borrowers on PAYG incomes.
Elliott said it was a priority to develop the home loan side of ANZ Plus.
He said Suncorp Bank retail customers will be moved to ANZ Plus, which will give it a big scale benefit. Savings and transaction customers will be migrated first, followed by home loan customers.
Once the Suncorp customer migration has been completed, the bank will start to move classic customer to Plus.
Elliott said the Suncorp Bank acquisition, which was announced in July 2022, has taken longer than anticipated but he is still happy that it will deliver the expected benefits. He said completion should be around August.