ANZ BANK CONTRIBUTIONS TO FIJI’S ECONOMY
ANZ innovation to support growth of Fiji
Aside from large corporates, Fiji is underpinned by Small and Medium Enterprises (SMEs) and microenterprises and still has a very vibrant informal economy. ANZ bank Fiji has supported the growth of Fijian economy in many ways and a particular innovation that ANZ bank introduced to support the government policy of SMEs and microenterprises is to encourage grassroots entrepreneurship. As mentioned by the Governor of Reserve Bank of Fiji (B. Whiteside, 2012), “the estimate is that Fiji’s SME sector accounts for around 12 per cent of economic activity in the country and still largely untapped”. Hence, Fiji’s potential for growth is large when considering that SMEs in other developing countries that can contribute as much as 40-60 percent of GDP as it can add significantly to growth by creating jobs and generating significant domestic and export revenue. Thus, given the potential that Fiji already has, ANZ bank recognizes and supports the contribution of SMEs in Fiji’s economy. Apart from the SME innovations, ANZ bank also launched the financial literacy program called ‘Money Minded’ in the Pacific recently and have extended this business since its inception. ANZ is essentially educating small business owners about aspects of cash management, balance sheet management, and reinvesting in businesses.
ANZ moved Pacific Headquarters to Suva
ANZ bank has moved its Pacific Headquarters from Melbourne, Australia to Suva, Fiji, reinforcing Fiji’s reputation as the business hub of the Pacific. This move has further had a significant impact on ANZ’s positioning as the bank of choice for potential corporate client looking to do business in the region. ANZ believed that everything revolves around the customers and such move will enhance the customer experience and will goes to show ANZ’s true commitment to the region and to the country. This strategic move has seen ANZ not only benefiting from off-shoring jobs and cutting costs but they are able to do more with less and pass some of those benefits onto their customers.
ANZ community support
ANZ bank attributed its success here in Fiji for being part of the community and not just by money making. The bank had values that were firmly built around the notion that in order to grow as a business, they need to help the community grow to help their business grow. These values had proven to be the cornerstone for their success in Fiji over a long time since its establishment and still growing stronger. ANZ bank also understands the sensitivities and sentiments of the local communities and seeks to integrate with the community and understand their needs when designing targets and goals for their products and services. Therefore, ANZ have three key components to their Community Support Program that help the communities and that includes;
• Financial literacy
• Charitable donations
• Volunteering – staff volunteering are measured by the numbers of hours
For a country of Fiji’s size, the banking sector is highly competitive, with big players such as ANZ, Westpac, and BSP and Bred bank. Hence, potential bank clients have the choice to choose a banking partner in Fiji’s competitive banking sector. However, ANZ is the only bank out of all the banks operating in Australia, New Zealand and the Pacific that can be considered truly international because it operates in 34 countries all over the world and 29 of them are in the Asia-Pacific region. Given its wide establishments internationally, ANZ has the capacity and capabilities to facilitate international trade growth because ANZ has a strong international presence for its customers.
ROLE OF ANZ BANK FIJI IN THE TRANSFER OF FUNDS FROM SAVINGS TO DEFICIT UNITS
ANZ has a number of key drivers and strategies that facilitates the flow of funds from savings to deficit units. Hence, the following discussion provides features of two primary strategies used by ANZ as key drivers that continue to generate and issue funds to efficient users.
Sources of funds
Like another commercial banks, ANZ bank makes money by lending money at rates higher than the cost of the money they lend. By this, ANZ bank collects interest on loans and interest payments from debt securities they own, and pay interest on deposits and short-term borrowings. Following are some features of sources of funds recognized and accepted by ANZ bank;
The largest source of finds for ANZ is deposits, which are mostly made up of the money that accounts holders entrusts to the bank for safekeeping and use in future transactions as well as modest amounts of interest. Generally referred to as “core deposits”, these are typically the checking and savings accounts that so many people currently have.
B. Business Cheque Account
ANZ Business Cheque Account is a transaction account designed to meet the day-to-day requirements of an active business. The automatic cheque book services means that before a current book is finished, a new cheque book will be made available without having to ask for a new one. ANZ Business Cheque Account may be opened in sole, company, business, club, group, government department or agency names.
C. Cheque Overdraft
Adding a cheque overdraft facility enables businesses to meet fluctuating day-to-day working capital requirements as they arise. It provides the line of credit for businesses to help manage business cash flow. With an overdraft facility, there is no fixed or minimum monthly payment, and interest is calculated only on the portion of funds actually being used. When debited, the balance is maintained within limit and the limit is usually reviewed annually, taking into account the account performance and business needs.
The ANZ Diskpay facility enables businesses to provide ANZ with electronic payment files to process frequent bulk processing tasks, such as payroll and accounts payable electronically. ANZ Diskpay can also be used as a direct payments facility for high volume, frequent payments.
E. Industry Specialists
At ANZ they understand the unique needs and challenges faced by various business industries. This is why they have developed a relationship service that can help businesses’ banking needs no matter what type of businesses. They provide banking advice for industries such as;
Use of funds
ANZ’s loans are the primary use of their funds and the principal way in which they earn income. Loans are typically made for fixed terms, at fixed rates and more typically secured with real property often that the loan is going to be used to purchase. Hence, the following are ANZ’s major features of use of funds through loans;
A. Business Loans
ANZ’s Business Loan is an ideal form of finance to cover the different stages in the life of a business such as capital investment, business development or working capital, where an injection of funds may be needed. An ANZ Business Loan provides a high degree of flexibility with regards to interest, loan terms and repayment options. Security may be required depending on the amount borrowed and loans are normally drawn in full at the outset or in stages where necessary.
B. Visa Business Credit Card
ANZ’s Via Business Credit Card suits a variety of purposes or individual requirements and is great choice for travelling and entertainment. The following are some features of service;
• Customers can access their money via ANZ ATMs, EFTPOS merchants and banks worldwide displaying the Visa symbol.
• 45 days interest free credit on purchases.
• Monthly account statements detailing all credit card transactions for easy reconciliation.
• Option to pay balance of card in full or pay as little as 5% of outstanding balance.
C. Asset Financing
ANZ Asset Financing assists with businesses that are looking to acquire a plant, equipment, or vehicle fleet for their business and particularly focuses on asset financing and leasing solutions. ANZ Asset Financing is basically a solution that assists with financing plant, equipment or vehicles for business purposes.
D. Insurance Premium Financing
ANZ’s Insurance Premium Financing is to safeguard against uncertainties in running a business, which ANZ can help ease the financial burden of paying large lump sums of insurance premiums by spreading the cost throughout the year in easy monthly instalments. That can help increase the business cash flow and increase the capital for other business opportunities.