ANZ to further invest in digital mortgage product

On the back of the release of ANZ’s 2023 full-year results, the major bank’s chief executive Shayne Elliott foreshadowed plans to further invest in its digital home loan refinance product.

According to Mr Elliott, the major bank released its new ANZ Plus digital home loan refinance product to eligible customers earlier this month (November), with the aim of making “home lending faster and simpler for Australian home owners”.

The major bank launched a digital banking platform 18 months ago and has garnered over half a million customers with over $10 billion in deposits since, Mr Elliott stated.

“The cost of operating ANZ Plus is materially lower than our existing retail business and we are seeing high levels of customer engagement and satisfaction,” Mr Elliott said.

“Importantly, the advanced security measures on ANZ Plus resulted in one of the lowest incidences of digital fraud in the industry.

“Looking ahead, we will continue to manage costs to create capacity for further investment in ANZ Plus, growing our Commercial business and enhancing our sustainability, currency and payments platforms.”

Currently, people looking to obtain a home loan through ANZ Plus are required to earn a PAYG income and have no more than 80 per cent LVR on the property. The ANZ Plus home loan variable rate currently offers 5.89 per cent per annum.

According to ANZ, the digital home loan option is set to include offset accounts for borrowers, auto repayments from a joint account and applications through an iOS device.

Suncorp-ANZ merger update

Earlier this year, the Australian Competition and Consumer Commission (ACCC) decided against granting merger authorisation for ANZ to acquire Suncorp Group’s banking arm over concerns over home loan competition and SME lending competition.

Since then, ANZ has applied for a review on the ACCC’s decision, with Mr Elliott stating that the acquisition of Suncorp Bank would “create a combined bank which is better equipped to respond to competitive pressures”.

The major bank confirmed in its full-year results that it expects the ACCC’s decision by February 2024.

“If ANZ’s application is successful, completion would then remain subject to approval from the federal Treasurer and the passage of legislative amendments by the Queensland Parliament,” ANZ stated.

“We continue preparations to integrate Suncorp Bank into ANZ Group, subject to these conditions being met.”

[RELATED: ANZ seeks review of ACCC decision on Suncorp acquisition]