ANZ out of Invoice Discounting
(15 June 2009 – Australia) ANZ is moving out of Invoice Discounting, a growing business banking product, moving current customers to other product alternatives.
ANZ has indicated that it will abandon the financing product in favour of other products, website SmartCompany reported.
An ANZ spokeswoman said that the bank will migrate the less than one percent of commercial customers who use the invoice finance product to other alternatives over the next 12 months.
The spokeswoman added that some customers are likely to find a more suitable and less administratively burdensome banking product as a result.
Further, ANZ are notifying their commercial customers of the changes with individual phone calls and will visit each customer to establish alternative providers or options, which may include commercial bills, overdrafts or term loans.
The bank said customers may even experience cost benefits as a result of the changes, which were decided on after an internet revenue assessment.
ANZ's is not the first to exit the product, after BankWest's similar move out of the market last year. The other big four banks, as well as St George and a number of small provides still offer the product.
David Whiting, acting head of debtor finance for Oxford funding, said that the debtor finance industry is growing but several banks may realise they do not have sufficient expertise and systems to manage their products. He said this will provide opportunities for other businesses to take up the slack.
Whiting added that with the exit of some of players like BankWest and ANZ, the market opportunity for specialist providers is becoming far greater.
An ANZ spokeswoman said that the bank will migrate the less than one percent of commercial customers who use the invoice finance product to other alternatives over the next 12 months.
The spokeswoman added that some customers are likely to find a more suitable and less administratively burdensome banking product as a result.
Further, ANZ are notifying their commercial customers of the changes with individual phone calls and will visit each customer to establish alternative providers or options, which may include commercial bills, overdrafts or term loans.
The bank said customers may even experience cost benefits as a result of the changes, which were decided on after an internet revenue assessment.
ANZ's is not the first to exit the product, after BankWest's similar move out of the market last year. The other big four banks, as well as St George and a number of small provides still offer the product.
David Whiting, acting head of debtor finance for Oxford funding, said that the debtor finance industry is growing but several banks may realise they do not have sufficient expertise and systems to manage their products. He said this will provide opportunities for other businesses to take up the slack.
Whiting added that with the exit of some of players like BankWest and ANZ, the market opportunity for specialist providers is becoming far greater.
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