The banking industry has a very long history which has ups and downs many times. The dark days of the bank can be during the war, the crisis, bubble which made the world afflicted in some period of time. The light pages can be the innovation of cheques, ATM, applying technology in the industry such as: mobile banking, telephone banking, internet banking, etc. Internet banking is one of the most affected factors that grew up the bank in many ways. ANZ is one of the banks that apply it in to the business which had a very success result. That is the reason why this essay will discuss the ANZ Australia case (The Project Tiger's Leap toward Scale). The discussion is including the overview of ANZ Bank, the business opportunities and competitive advantages of e-banking tools and processes. From that point, you can see the impact of the project to the bank's growth and some opinion about the E-finance.
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ANZ in Vietnam is not popular. However, it is a brand name in Australia and New Zealand. That is one of the reasons why it's named ANZ Bank commonly. It full name is TheAustralia and New Zealand Banking Group Limited. ANZ is one of the biggest bank in Australia It ranged after theCommonwealth Bank (CommBank),Westpac Banking Corporation (Westpac), and theNational Australia Bank (NAB)in terms of market capitalization).However, ANZ is the largest bank in New Zealand. ANZ has a long history which is over 175 year's growth. To support the over 8 million customers in 32 countries (in Australia, New Zealand, throughout Asia and the Pacific, and in the Middle East, Europe and America), ANZ employ 48,000 people worldwide. The bank serves in personal banking, private banking, small business, Corporate, Institutional and asset finance customers.In order to serve a huge number of customers, ANZ use technology to help them to do the business. The technology and operations center in Bangalore (India) is the convincing evidence.
2. The Project Tiger:
ANZ has been applying information technology for a long time ago. Some projects were Personal Computer Banking (PC Banking from the mid- to late-1990s) and Edify Internet banking solution (from1998 to 2004).However, the successful project in the past is the project Tiger which is launched in 2004. The project grew the ANZ Bank's online channel. ANZ.com is considered as a preparation for the project Tiger. It is a separate business unit which sells products through the online channel. Actually, Project Tiger is a background for the internet banking of ANZ group through Australia, New Zealand and Asian. Project Tiger will be the Finacle solution as great as software development and maintenance. The Central IT will deal with business units (inside the group) such as: mortgages, consumer finance, credit cards, investments and insurance, among others.
3. The situation overview:
Actually, the internet banking has been developing in the last decades. It first stared in late 1980s. In the early 1990s, “home banking” allowed customers to check their account balances from computer. From the very basic tasks of the information technologies, the bank has been developing continuously to support for the business. In the mid 1990s, most of the banks in USA and Europe set up their own websites for customers about their products and contact information. And then, few year liters, the internet banking are become popular.With only few click, you can easily pay bills, order statement, transfer funds, purchase online, and more.(The advantages of online baking will be discussed later).
III. NEW BUSINESS OPPORTUNITES AND COMPETITIVE ADVANTAGES:
In this part, the discussion will be divided into two parts: Competitive advantages and business opportunities from the e-banking tools and processes.
1. Competitive advantages:
In this first paragraph, there are some competitive advantages will be discussed. The adverts cost also reduces because of the online website. With the online website, the company can do the advertising. The information and new Champaign of the company will be always up-date. It is much cheaper than other types of advertising such as: TV, newspaper, etc. Moreover, the company can do more by mailing or users' box to abstract the customer. With the full and huge information about the products and service of the company, customers can easily find what they want.
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The online channel is also a channel that enhanced the availability of the bank to customers, responds to self-service preferences of customers, and extends the bank's customer experience motivations.The internet banking help the banks serve their customer better and faster. With some clicks, customers can easily handle their finances. He/she can check his/her accounts and does many transactions through the internet. Most of the requests and tasks are quickly processed online.The banks also can update all the information and promotion through its website for customers. With the modern service, bank can serve and make the customer to be loyalty in the long run from the servicing advantages.
Applying the internet banking, the bank also can control the customers' profiles effectively and efficiently. Every time the customers sign up and find the needed information, the software will record all history and transactions. As a result, the bank can control the profile well. In my experience during the internship, I can see that the ANZ has very specific software to control the profile of customers. Whenever the customer ellectronictical sign up for his user, find the information, do the transaction, mobile payments, etc. All history will be report for every department who need his information. However, it is totally in secret because you have to use your password to pass in. Unluckily, I don't have one because of an internship student. The exploitation of customers' profile might be another main source of competitive advantage in the future.
In addition, the bank can lower maintaining and operating cost. It means that the customer have an account online which is control by software and the IT. Therefore, the bank doesn't have to pay more fees for hire more employees and stuffs fees. As a result, the customers will usually don't have to pay fees with the online accounts and take a higher interest rate (around 6% at this time, 2007).The bank also can connect a number of different systems such as: credit cards, mortgages, deposits and more which are seen though one portal.
2. Business opportunities:
E-finance has been for 10 years. Therefore, the bank still has more opportunities to work in this sector. For recent years, the ANZ bank still run more functionalities in its Internet banking offering such as the increasing in sign-ups, cross-sell and activity rates. In addition, the Finacle platform will be deployed in the banks. They will affect the internet banking strategies by three technology incentives (focus on securing the Internet banking channel, the advent of new Web-based offerings for business banking, Mobile banking proposition revisited).
As discussion above, the e-bank improve the customer experience and satisfaction with better and faster service. However, the e-bank still has to compete with the traditional banking such as bank deposit and other products that online banking cannot offer. In the future, the bank will have more opportunities to develop more products and services for the customers.
Moreover, the bank can also have opportunities for abstract customers to do online banking. In the global Nielson consumer report about Banking Services and loyalty (in April 2007) had show that the Australia is one of the top 10 countries which use the internet banking at least one a week. Look at the chart below for the comparison. The report is made through 36 markets in the world. The percentage of that is about 68%.That's why, the Australian Banks, especially ANZ bank, still have more opportunities to expand the market.
Moreover, with the internet banking, banks can expand the market in other countries, especially “cash-using culture” countries such as Vietnam. However, this is the long process to change the lifestyle and consumers' styles.These countries will be the potential market to develop. With the internet banking, the can also can easily control the whole system through the world to support the customers.
IV. THE IMPACT OF THE PROJECT TO THE BANKS:
Australia also tried to adopt the development of internet banking from the western countries. That is the reason why Australia is the first one who applies the internet banking in the region.Four biggest giants in the banking industry ( NAB, CommBank, ANZ, Westpac) applied the internet banking earlier. However, in the first years, they are all try to make people believe in the online banking segmentation. Westpac is the pioneer in this section. ANZ had followed in the late 1990s. Look at the chart below to have an overview of the internet banking industry in Australia from 2000 to 2008
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As we can see from the chart, the internet banking user had increased fast after 8years from 2000. It started in 2000 with around 1 million. The users in 2008 are more than 8 million (such an amazing number). This paragraph will mention some achievements of ANZ in Australia. In mid 2007, the online accounts sign-up is huge. There were the expanding of customers in accounts and the increasing of transactions between online accounts. The old customers (aged 50 years and above) used online banking was higher than 20% in the past three years. It means that the confident in the security solution and customer education increase. 80% of online banking users pay bills through the internet (one of the highest percentages in the online baking worldwide).As a result, the online banking security improved a lot.
Look at the second chart below to see the most important business benefits of the Internet Banking Projects. As you can see these some majors are: the activity of customer rate, number of sign-ups, customer experience, cross-sell, cost-to-serve and productivity of bank staff. The most impact is the increasing of activity rates. It means that the number of customers use the internet banking or do the business through the internet is huge and continuous increasing.Â The case mentioned that the ANZ Bank has been increasing active users by 250,000 per year since the launch of Project Tiger.Some factors (such as: increase in number of sign-ups, improvement if customer experience, improvement of cross-sell) show that the number of customer was getting higher and higher. Although the customers increased that time, the productivity was getting better with a lower cost-to-serve.
In this paragraph, the discussion is all about the question: “does the project encompass the new trends in E-Finance?” In my point of view, the Project Tiger is a part which built the new trend in E-finance. Actually, Project Tiger is an internet banking solutions (same like Edify solution). The picture will show the history of ANZ internet bank about them.
During the history, ANZ Banks applied many things such as PC banking, Edify solution, Project Tiger and Finacle Platform. These day, ANZ have a new program which I used to have an experience on (I forget the name). Back to the discussion, the Project Tiger was launched in 2004 to upgrade the bank's Internet banking system for consumer banking. After launching this project, the ANZ had a strong increasing in number of internet banking users from 4 million in 2004 to 7 million in 2006. The project worked better than the Edify (the first-generation Internet banking solution). However, the bank quickly upgraded the bank's retail Internet banking system to an Infosys Finacle platform. , Infosys has come up with higher versions of the Internet banking product, the features and functionalities of which are also being integrated into the ANZ Bank installation. Non-stop from that point, the ANZ continues to introduce new features into the current system (related to security, new cash management system, etc).In sum up, the Project Tiger is one of the factors that made the new trends in e-Finance.
As the discussion above, we all see the Project Tiger has a very good impact on the internet banking in ANZ Bank. It is one of the factors that increase the internet banking user in Australia. The Project gave many competitive advantages for the bank in privacy. In the big picture, we can see that the new business opportunities and competitive advantages created by the enhancing of e-banking tools and processes. The typical example is the impact of the Project Tiger to the ANZ banks. From my point of view, the e-finance will be developed more with growing up of the information technologies.