ANZ explains why they made the agreement to sell its retail, commercial and small and medium enterprise banking business to Kina Bank.
Last June, the ANZ Bank announced an agreement to sell its retail, commercial and small to medium enterprise (SME) banking businesses in the country to Kina Bank, to focus solely on institutional and large corporate banking in the market.
ANZ mentioned that the transaction received regulatory approvals from the Bank of PNG and the PNG Independent Consumer and Competition Commission on Feb 26 and March 27 respectively.
The sale involved all 15 ANZ branches plus the roles of staff.
To ensure an orderly transition of ownership, ANZ will continue to manage the retail, commercial and SME businesses until the transaction is completed in September, when Kina takes over control.
There is no impact to its institutional and large corporate banking businesses in the country, where they see opportunities for growth and have a positive economic outlook.
Below, ANZ explains the reasons behind the sale.
QUESTION: Why has ANZ
sold its retail, SME and emerging corporate banking businesses?
ANZ: The transaction follows a strategic review of our retail and wealth operations in Asia, as we looked at options to simplify the bank, distribute capital more efficiently across the group and focus on trade and capital flows throughout the Asia-Pacific region.
The decision to sell our retail, commercial and SME banking business in PNG to Kina Bank is in line with our group strategy, and in no way impacts our institutional or large corporate banking business in PNG, or alters our commitment to the market.
This follows recent announcements of the sales of our retail and wealth businesses in Singapore, Hong Kong, China, Taiwan, Indonesia, Vietnam and Cambodia.
Q: Will ANZ have a presence in PNG following the sale of retail, commercial and SME banking businesses?
ANZ: Yes. This transaction with Kina in no way impacts our institutional or large corporate banking business in PNG, or alters our commitment to the market.
We continue to have a positive outlook for the PNG economy and see great opportunities for growth.
Q: Kina Bank is a new player in this market. Why should I trust them with my money?
ANZ: Kina Bank was established in 1985 as a diversified financial services company in PNG.
It is listed on both the Australian and Port Moresby stock exchanges and are distinguished for funds administration, funds management and stockbroking, which complement our banking services.
Kina Bank’s appetite for growth and investment means it is the fastest growing bank in PNG.
Its vision is to be the most dynamic, progressive and accessible financial services company in the country.
In short, PNG’s leading digital bank.
Q: What sort of banking products and services does Kina Bank offer?
ANZ: Kina Bank already services thousands of retail and commercial customers across PNG.
Its emphasis on digital banking means we already offer market leading channels such as corporate and personal internet banking platforms and mobile banking app.
Its core banking system was upgraded in 2017 and is one of the country’s leading and most contemporary systems.
In the lead up to the planned acquisition, it will be enhancing its suite of products and services, including offering market leading visa credit and debit card products with chip and contactless technology, plus an Eftpos network with the latest market-leading Eftpos terminals.
ANZ customers can be sure to experience dynamic, best-in-class products, as well as the exceptional service our existing customers currently receive.
Q: Will the products and services provided by ANZ be the same as at Kina Bank?
ANZ: Kina Bank will offer all customers the products and services ANZ customers are currently used to. As we build out, the philosophy is that ANZ customers will receive at least the equivalent in terms of fees, rates, or service.
In fact, new customers will find many fees and features at Kina Bank are better than those they currently receive.
We expect many of our customers will be surprised – and delighted – when they move across to Kina Bank.
Q: What does the organisational structure of Kina Bank look like?
ANZ: Kina Bank is listed on the Australian Stock Exchange (ASX code: KSL), and the Port Moresby Stock Exchange.
Greg Pawson is the chief executive officer who is one of the most senior and respected leaders in the banking industry in the Asia-Pacific region.
Pawson joined Kina Bank last year after his previous role as the regional head of Westpac South Asia and Pacific.
Reporting to Pawson are a number of executives who lead the various divisions of Kina Bank such as personal banking, business partners and wealth and shared services.
Q: Is Kina Bank a rated bank? If so, what is its S&P rating?
ANZ: No. Kina Bank is dual listed on the Australian and Port Moresby stock exchanges and is governed to the standards you would expect of a dual-listed company.
It complies with relevant laws, regulations and standards set down by both the Bank of Papua New Guinea and the Australian Stock Exchange.
It publishes annual results through the annual reporting process and also available online.
Q: Please provide some clarity around Kina Bank’s compliance processes.
What sorts of compliance processes does Kina Bank apply to ensure my money is safe?
ANZ: Kina Bank operates to the highest international compliance standards.
This is essential for shareholders, and its ability to transact foreign currency with international banks. Its “know your customer” (KYC) and anti-money-laundering (AML) processes are robust.
The board and management have designed a governance framework for the operation and management of Kina Bank, which incorporates resilient internal controls, risk management processes and governance policies and practices.
The board monitors adherence to this framework ensuring Kina Bank complies with relevant laws, regulations and standards set down by the Bank of PNG, the Australian Securities Exchange, the Port Moresby Stock Exchange, the PNG Companies Act 1997, PNG Securities Act and the Australian Corporations Act 2011.
Q: Who owns Kina Bank and who are its shareholders?
ANZ: Kina Bank is dual listed on the Australian and Port Moresby Stock Exchanges and its shareholders include a range of institutional and retail investors in PNG and Australasia.
Last June, Kina Bank’s founding and major shareholder Fu Shan sold their entire stake in Kina Bank.
The sell-down, managed by Morgans Financial Ltd, prompted strong demand from both PNG and overseas shareholders with shares heavily oversubscribed.
Q: Does Kina Bank have a culture like ANZ?
ANZ: Every organisation has its own culture. Kina Bank prides itself on a culture that values diversity
and fosters a One-Kina Bank approach.
It creatively and energetically solve customers’ problems because it thinks differently and acts with urgency.
It aspires to be the most dynamic, progressive and accessible financial services company in PNG.
It encourages the learning and development of all of its staff and fairly reward for risk and performance.
Q: Does Kina Bank have some connection with the PNG Government and are there any existing political members who are on the Kina board?
ANZ: Kina Bank does not have any political affiliation in PNG or Australia.
Kina Bank board members are appointed by shareholders and are a mix of highly experienced business leaders from across the Asia Pacific region.
Q: Will customers need to sign any new account opening documents/ provide documents to Kina Bank after the transition?
ANZ: In most cases, customers will not need to fill in new account opening forms, and account numbers will remain as they are.
Q: If I have a dispute in respect to accrued interest and fees charged, what do I do?
ANZ: For now it is business as usual. This means that if you have any issues with your banking, you can speak to your relationship manager at ANZ if you are an SME business, or speak to any ANZ staff at the branch if you are a retail customer, and they will assist you.
Towards the end of the transition, we will provide all our customers with details of how customer enquiries will be managed after the transition.
Q: I’m not comfortable about having my account moved to Kina Bank. Could I have my account transferred to either BSP or Westpac PNG?
ANZ: We encourage all customers to transfer their accounts from ANZ to Kina Bank as part of the transaction to ensure they continue to receive a world-class banking service. If they are thinking of transferring to another bank, we encourage them to speak to Kina Bank first.
Q: What will happen to my account(s) after the transition?
ANZ: Your accounts will be transferred to Kina Bank when the transition process is complete.
We are working to make the transition seamless for all customers and offer the assurance that the impact on customers will be minimal and you will receive exceptional customer service from Kina Bank.
Your ANZ cards will still work after the transition, as will the way you access other channels such as ATMs, Eftpos, internet banking and the branch network. More information will be made available closer to the transition.
Q: Will I still have the same account number after the transition?
ANZ: In most cases, customers will keep the same account details. We are still working through some of the detail of the transition and will keep customers well informed of the process.
We offer the assurance that the impact on customers will be minimal and you will receive exceptional customer service from Kina Bank.
Q: What are the account fees going to be like at Kina Bank?
ANZ: Kina Bank offers competitively priced fees for market leading products and services.
The fees you pay for products and services will be the same as, or better than, what you are paying currently.
Q: Will my PIN change after or during the transition?
ANZ: After the transition, when you use a Kina Bank ATM, you will be prompted to change your PIN.
Q: I had a bad experience dealing with my shares proceeds at Kina Bank.
What’s the guarantee that when I transfer my accounts to Kina Bank, I’ll be well taken care off?
ANZ: At Kina Bank, we are committed to delivering exceptional service. This commitment sets us apart in the market and makes us a better alternative.
The relationships we form with our customers are the cornerstone of Kina Bank and we offer the assurance that you will receive exceptional customer service.
The ANZ retail team who currently service ANZ customers will continue to work for Kina Bank and offer the exceptional Kina Bank experience.
Q: Will ANZ close our current accounts and open new accounts with Kina Bank?
ANZ: Your ANZ account will be automatically migrated across to Kina Bank and a new account will be established on Kina Bank’s systems. Your Kina Bank account will have the same balance it had at ANZ, and the same or better fees and rates as ANZ.
Q: Will my account be affected with regards to fees and rates at the time of crossover to Kina Bank?
ANZ: You might notice some changes to the fees you are charged or the interest rates you receive or pay.
The great news for ANZ customers is that wherever you notice a change, it will be in your favour.
Q: Will the policies and processes be the same at Kina Bank especially with account opening requirements?
ANZ: As both ANZ and Kina Bank are regulated by the Bank of PNG, you will notice the standards applied as very similar. The only changes you will notice are in the process itself. Kina Bank’s digital processes and systems make account opening fast, easy and secure.
Q: When exactly will our accounts be transferred to Kina?
ANZ: Your accounts will be transferred to Kina Bank on completion of the acquisition. We expect this will be in September.
Q: Will employees have new access cards to ATMs/Eftpos to access their pay?
ANZ: No. The existing ANZ Access and Visa debit and credit cards will be migrated to Kina Bank automatically and should work as they do now after the transition. In time, all existing ANZ cards will be replaced by new Kina Bank cards.
Q: Will those on ANZ Transactive be able to access their accounts electronically with Kina Bank after the transition?
ANZ: Kina Bank offers online banking for both commercial and retail customers. Kina Bank will work with you to ensure a smooth transition of your business’s transactional banking requirements to Kina Bank.
Q: Can those using Internet Banking for Business be able to access their accounts electronically with Kina Bank?
ANZ: Yes. Kina Bank’s corporate online banking is among the best in class. It will ensure the transition will be seamless.