Shayne Elliot, CEO of ANZ, recently addressed the House of Representatives Standing Committee on Economics regarding the performance and strategies of the four major banks. He was joined by Kevin Corbally, Chief Risk Officer, and Evelyn Halls, Customer Fairness Advisor. Halls, who joined ANZ from AFCA where she served as Lead Ombudsman for Banking and Finance, aims to enhance fairness in the bank's offerings.
Elliot highlighted the current financial climate following the Reserve Bank's decision to maintain the cash rate at 4.10%, despite a steady increase from its historic low. "Our latest figures were published in May and these showed that, while some customers are struggling, most are managing their way through the current financial pressures," he noted.
He attributed customer resilience to three factors: a robust labor market providing higher real incomes, significant household savings over recent years, and improved credit standards due to enhanced prudential regulations post-global financial crisis. However, Elliot acknowledged concerns among Australians about household budgets and noted an increase in customers seeking assistance.
ANZ has implemented measures like partial payments and interest-only terms through its Customer Connect team to support those facing difficulties. "We will continue to watch how our customers are going and support them when we can," Elliot assured.
On broader economic impacts, Elliot observed slight moderation in inflation but subdued GDP growth with forecasts of 1% in 2023 and 1.3% in 2024. Rising unemployment rates could pose challenges for many Australians amid weaker consumer spending across major categories compared to last year.
House prices have shown an upturn driven by population growth and low supply levels. Elliot also emphasized the importance of a stable payments system for economic health. ANZ facilitates $164 trillion in transactions annually across 149 countries supporting eight million customers.
The bank is committed to innovating within this space while addressing issues like scams affecting customers. Elliot welcomed government efforts towards modernizing payment systems through initiatives such as phasing out cheques and enhancing regulatory frameworks.
"We look forward to working with the Government on its agenda," Elliot concluded before opening the floor for questions from committee members.