Kiwibank may go global
(24 February 2011 – Australia) Kiwibank will decide in three months whether to roll out its own international banking services, a move that signals its intention to take on Australian-owned rivals more aggressively in chasing commercial customers.
The lending arm of state-owned New Zealand Post has put out a request for information (RFI) on the government electronic tenders service (GETS) for provision of platforms for international banking.
Kiwibank Treasury is aiming to have a set of platforms in place by 2015, with front and back office support for products and services aimed at commercial and retail clients, the RFI says.
The bank aims to be able to make a decision in three months, said spokesman Bruce Thompson.
'We are merely asking for information on a number of different international platforms to see what is out there, so that we gain a better understanding of what we might want to do in the future,' says Nigel Gaudin, deputy treasurer.
Kiwibank currently provides products and services including foreign currency accounts, so-called Vostro accounts held by a local lender in NZ dollars for overseas banks, and commercial customer management via third-party offshore banks.
Of its current arrangements, the bank's RFI says: 'Not all are deemed ideal for future growth expectations, both in volume and sophistication of new customers.'
The bank's strategic aims for international services over the next three years are to grow market share, especially from commercial customers, reduce reliance on third-party vendors, 'challenge existing market practices' and provide 'innovative international payment and hedging solutions.'
Kiwibank ranks a distant fifth behind ANZ New Zealand, Commonwealth Bank of Australia, Westpac and Bank of New Zealand by loans and advances to customers, based on PricewaterhouseCoopers figures, at A$10.4 billion in the second half of 2010.
Market leader ANZ had advanced A$96 billion and the other big three all had over A$50 billion outstanding.
The average total assets of the biggest four banks was A$84.8 billion to Kiwibank's A$12.2 billion.
Kiwibank's profit out today fell 41 percent in its first half, mainly reflecting a jump in impairments on business.
Kiwibank Treasury is aiming to have a set of platforms in place by 2015, with front and back office support for products and services aimed at commercial and retail clients, the RFI says.
The bank aims to be able to make a decision in three months, said spokesman Bruce Thompson.
'We are merely asking for information on a number of different international platforms to see what is out there, so that we gain a better understanding of what we might want to do in the future,' says Nigel Gaudin, deputy treasurer.
Kiwibank currently provides products and services including foreign currency accounts, so-called Vostro accounts held by a local lender in NZ dollars for overseas banks, and commercial customer management via third-party offshore banks.
Of its current arrangements, the bank's RFI says: 'Not all are deemed ideal for future growth expectations, both in volume and sophistication of new customers.'
The bank's strategic aims for international services over the next three years are to grow market share, especially from commercial customers, reduce reliance on third-party vendors, 'challenge existing market practices' and provide 'innovative international payment and hedging solutions.'
Kiwibank ranks a distant fifth behind ANZ New Zealand, Commonwealth Bank of Australia, Westpac and Bank of New Zealand by loans and advances to customers, based on PricewaterhouseCoopers figures, at A$10.4 billion in the second half of 2010.
Market leader ANZ had advanced A$96 billion and the other big three all had over A$50 billion outstanding.
The average total assets of the biggest four banks was A$84.8 billion to Kiwibank's A$12.2 billion.
Kiwibank's profit out today fell 41 percent in its first half, mainly reflecting a jump in impairments on business.
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