NAB approaches Asia in a different direction from rivals
(12 March 2013 – Australia) National Australia Bank (NAB) is focusing its Asia expansion on supporting investment and trade needs of its domestic customers in the region.
According to NAB Asia Chief Executive Spiro Pappas, the bank has adopted a different strategy from its rivals, steering away from acquisitions there.
''Our approach focuses on that investment and trade flow with our corporate and business customers, which means we don't need to have a vast footprint in the region,'' he said. ''We have a deliberate policy of targeting their Asian agenda.''
''A bricks-and-mortar approach in China can only take you so far. I think Standard Chartered has been in Asia since the 1840s and they just celebrated their 100th branch,'' he said.
''To put that in perspective, the largest bank in China has more than 10,000 branches.''
Pappas hopes to grow the bank's business in Asia on the back of ever-expanding ties between Australian customers and the region.
''The growth is challenged for a lot of industries in Australia, so where is the growth going to come from?'' he said. ''Asia is one of, if not the biggest, avenues for Australian corporates to focus on.''
Surveys of its business clients - from small manufacturers to multinational mining giants - showed ever-greater appetite for Asia expansion, he said.
'At SME level, they are becoming Asia-active (25 to 30 percent) and at large corporate level they are very Asia-active (50 percent),' said Mr Pappas, according to a survey.
NAB is taking its corporate clients, including Woolworths, to Asia to tap into Asian investment markets. The bank is also attracting Chinese, Indian and Japanese capital into industries such as infrastructure, renewable energy, food processing and manufacturing. It is even helping wine and milk powder producers to negotiate distribution channel agreements.
''Our approach focuses on that investment and trade flow with our corporate and business customers, which means we don't need to have a vast footprint in the region,'' he said. ''We have a deliberate policy of targeting their Asian agenda.''
''A bricks-and-mortar approach in China can only take you so far. I think Standard Chartered has been in Asia since the 1840s and they just celebrated their 100th branch,'' he said.
''To put that in perspective, the largest bank in China has more than 10,000 branches.''
Pappas hopes to grow the bank's business in Asia on the back of ever-expanding ties between Australian customers and the region.
''The growth is challenged for a lot of industries in Australia, so where is the growth going to come from?'' he said. ''Asia is one of, if not the biggest, avenues for Australian corporates to focus on.''
Surveys of its business clients - from small manufacturers to multinational mining giants - showed ever-greater appetite for Asia expansion, he said.
'At SME level, they are becoming Asia-active (25 to 30 percent) and at large corporate level they are very Asia-active (50 percent),' said Mr Pappas, according to a survey.
NAB is taking its corporate clients, including Woolworths, to Asia to tap into Asian investment markets. The bank is also attracting Chinese, Indian and Japanese capital into industries such as infrastructure, renewable energy, food processing and manufacturing. It is even helping wine and milk powder producers to negotiate distribution channel agreements.
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