Suncorp chief executive Steve Johnston has confirmed that banking remains a core activity for the group, as he outlined an organisational restructure yesterday.
In the banking and wealth division, some support activities will be moved from the corporate centre into the division. These include brand and marketing, customer strategy and digital distribution.
A customer and digital business unit will be disbanded, with team members moved into the operating businesses.
Johnston told investors at a presentation: “These changes are aimed at improving the competitiveness of the bank, with benefits including faster decision making, greater digital capability and an expense profile more aligned to that of a regional bank.”
“I would make the point that the changes do not signal any shift of intent regarding the role of the bank within the group. The bank remains core to the group.”
Suncorp has appointed Clive van Horen as banking and wealth chief executive, starting in August. Van Horen spent the past 10 years at Commonwealth Bank, where he was most recently executive general manager business customer solutions.
Suncorp’s head of insurance Gary Dransfield has been squeezed out of the company and the insurance division split in two: products and portfolio, which will be headed by Lisa Harrison; and claims, which will be headed Paul Smeaton.
Johnston said: “The Australian insurance business is such a large part of the group and it requires greater focus on the transformation of revenues and costs. The program of work here is both large and complex, and to speed up its delivery is best tackled by two executives rather than one.”
The product and portfolio business will be accountable for brands, marketing, product, underwriting and distribution.
The claims business will have accountability for all aspects of claims, as well as insurance operations and projects, group property requirements and procurement.
In New Zealand, as with banking and wealth, more of the support functions will be devolved to the division.
With Paul Smeaton’s move to Australia, the New Zealand chief financial officer Jimmy Higgins will fill in as CEO while a search is undertaken.
Johnston said all changes across the business would be driven by a “digital first program”.
Former CBA executive Adam Bennett, who was recently appointed chief information officer at Suncorp will lead a newly created “technology and transformation function”.
Another casualty of the changes is head of human resources Amanda Revis, who is leaving Suncorp.
Suncorp also gave an update on the banking business, saying it had provided deferrals on 15,600 home loans and 3300 small business loans, representing about 11 per cent of the value of its book.