DC Strategy case study/business strategy

Mobi Access Careers

ANZ
27 Jul 2006

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ANZ originated in London in 1835, when the Bank of Australasia was established under Royal Charter. In 1951 the Bank of Australasia merged with the Union Bank of Australia (established 1837) to form Australia and New Zealand Bank Limited. Later, in 1970, Australia and New Zealand Bank Limited and the English, Scottish and Australian Bank Limited (established 1852) formed the Australia and New Zealand Banking Group Limited.

Today the Bank is a complex ﬁnancial services conglomerate and one of Australia’s largest ﬁnancial institutions. It operates over 2,000 points of representation in Australia, New Zealand, Asia, the Paciﬁc, the United Kingdom, Europe, the Middle East and the Americas.

ANZ Mortgage Group
The ANZ Mortgage Group is an integral component of ANZ’s complete banking service, offering a diverse range of mortgage home lending products. Consumers are able to access the ANZ Mortgage Groups products via a number of alternative distribution platforms, both within the ANZ Group and through independent ﬁnancial intermediaries.

The Challenge

The past ﬁve years have seen unprecedented growth in the Australian home and residential investment loan market. The stimulus for such growth has been a combination of strong economic activity, recent government initiatives (eg ﬁrst home buyer’s grant), and an ever-expanding population.

Strategic Evolution: The challenge involved repositioning the ANZ Mortgage Group’s existing distribution strategy.

Whilst ANZ has prospered in this environment, the continued emergence of independent ﬁnancial intermediaries, with their combination of ﬁxed and mobile service capabilities, highlighted a strategic threat to the ANZ Mortgage Group’s continued growth within the mortgage sector.

The challenge for the ANZ Mortgage Group was to conceive and implement a strategic initiative that would involve the repositioning of their existing mortgage distribution strategy. Their aim was to maximise market penetration, continue growth of mortgage lending funds under management and strengthen their strategic position within the Australian mortgage market.

The Solution

The strategic initiative identiﬁed by the ANZ Mortgage Group involved the adoption of an owner-operator business model, which harnessed the entrepreneurialism, productivity and toil of small business operators, within the constraints of a business format franchise.

Small Business Success: The development of an owner-operator business model, harnessing the entrepreneurialism and productivity of small business owners.

In recognition of its specialist capabilities within the sphere of franchising and business network development, DC Strategy was engaged to assist the ANZ Mortgage Group with this initiative.

The ensuing project involved assessing the economic feasibility of a franchise model, and addressed the corporate and organisational issues associated with successfully growing and managing a network of franchised ANZ business representatives.

DC Strategy’s key focus was to develop a business model that would facilitate the ANZ Mortgage Group’s achievement of its desired outcomes, whilst simultaneously developing the knowledge, understanding and skill sets of ANZ’s key internal stakeholders, with respect to managing a network of small business owner-operators.

The Outcomes

The result has been the development of ANZ Mortgage Solutions, ANZ’s new mobile mortgage lending franchise distribution channel.

A Business is Born: ANZ Mortgage Solutions - ANZ’s new mobile mortgage lending franchise distribution channel.

ANZ Mortgage Solutions focus is on galvanising ANZ’s position within the mortgage market, by extending the service capabilities of its mortgage lending distribution platform. The principle strategic objectives of the business are to:

Extend the ANZ Mortgage Groups share of the Australian mortgage market
Enhance the service capabilities of the ANZ network
Implement a distribution model that recognises the ever-evolving needs of the Australian consumer

ANZ is genuinely excited to provide the opportunity for a selection of motivated individuals/owner operators to align their future endeavours and successes with those of the ANZ Mortgage Group.