Branches central to ANZ's NSW push

ANZ needs to move away from simply selling the lowest-cost products, to listening to customers and trying to provide them with something tailored for them.

"[People ask] 'How are you going to revolutionise banking?' We're not. We're going to do all the basics really well – so all of those things that should have a customer stay with you and want more products, that's where we're going to grow market share.

"We have to compete on more than just price and more than just product; we have to be part of each local community. It is not like people want banks to be their second-best friend, but you do want to feel like you somewhat matter."

Home loan centres

Ms Noble was on hand to launch the first of several Home Loan Centres, to be styled on homes, in a Westfield shopping centre in the Sydney suburb of Parramatta.

The remodelled branch is part of a push by new chief executive Shayne Elliott to boost ANZ's share of the NSW retail lending market – where it has had the lowest representation among the major banks.

Total lending in NSW and the ACT is 27 per cent of ANZ's portfolio, compared to 33 per cent for Victoria and Tasmania. About 29 per cent of ANZ's home loan portfolio comes from NSW, which is in line with the proportion of home lending in Victoria, despite NSW having 2 million more residents.

But ANZ is growing faster than its peers in NSW – at twice average home-loan growth. Its home-loan book in NSW is growing at 20 per cent compared to 10 per cent nationally.

The customer-focused philosophy is particularly relevant for ANZ's growth ambitions in regional NSW and the ACT, where there can be entrenched loyalty to local bank brands.

"They are all different. Newcastle is a challenge for us because of the local brand Newcastle Permanent building society, for example."

But, like all the major banks, small-business lending has become more important as regulators make mortgages less profitable and a host of start-ups have begun lending to SMEs, mostly on an unsecured basis, which is unheard of for banks.

Ms Noble said individual customers are declining in branches and SME customers are rising, although they are still the minority at around 25 per cent of visitors.

The decline in retail is due to mobile apps, so providing good service digitally is important. ANZ Bank has one of the more up-to-date core banking systems – introduced in the early 1990s rather than the 1960s and '70s as was the case for Commonwealth Bank before its overhaul.

But Ms Noble was surprised to see old "green screen" systems still being used, although these are being replaced with more user-friendly interfaces for bank staff.

GoMoney app

"We are launching our new GoMoney app and internet banking platform in the new year, but a big part of it is also making it easier for the banker," she said.

ANZ is also rolling out "banker desktops" for branch and contact centre staff.

"So they won't have to understand Cap [an old system] and how to use green screens any more," she said.

"Eighty per cent of our home loans we can now do on banker desktop, but 20 per cent are still on Cap because they are quite complicated, with multiple securities."

ANZ and its Melbourne-based rival NAB have been slower to offer app-based banking like contactless payments on mobile devices than Commonwealth and Westpac.

But Ms Noble said this will change in 2016, with a new GoMoney app which will allow much higher amounts to be transferred online and a separate digital wallet that will offer tap-and-go payments on mobile devices – more likely via Android phones than Apple.