Freedom not price the key to new business, NAB says
(23 November 2005 – Australia) National Australia Bank CFO Michael Ullmer has denied the bank has used price to win market share over the past 12 months.
Speaking in an interview posted on the ASX, Ullmer pointed to the fact that the bank held its margins over the second half of 2005 as evidence that NAB had not priced any more competitively than its rivals.
Rather, it was a case of the bank’s new decentralised and simplified sales model that had resulted in market share gains, he said.
"The key thing we’ve done flows from the move to a regional accountability model, where we’ve taken some key steps to free up our processes and empower our frontline, whether that be in business banking, retail banking, or wealth management, to deal effectively with our customers quickly and win authority," Ullmer said.
"We have seen these important steps unleash the power in the franchise that the National Australia Bank has," he said.
Rather, it was a case of the bank’s new decentralised and simplified sales model that had resulted in market share gains, he said.
"The key thing we’ve done flows from the move to a regional accountability model, where we’ve taken some key steps to free up our processes and empower our frontline, whether that be in business banking, retail banking, or wealth management, to deal effectively with our customers quickly and win authority," Ullmer said.
"We have seen these important steps unleash the power in the franchise that the National Australia Bank has," he said.