Change needed to keep in step with market moves

Press, 5 July 1983, Page 27

Change needed to keep in step with market moves

THE intention behind the merger of Broadlands and Broadbank is to use the companies’ combined resources to their best advantage, to keep pace with a changing financial market.

The Managing Director, Mr Terry Haydon, said the changes would be most visible in saving and investment services. “We have got to look elsewhere for our funding base and widen this market. The combination of Broadlands and Broadbank under one structure will enable us to do this.” Mr Haydon said the merger of the two companies made Broadbank a significant force in the financial services market in New Zealand. The merged company had assets of $530,000,000 and shareholders’ funds of $42,000,000.

“That places us very comfortably between the traditional trading banks and other financial intermediaries,” Mr Haydon said. “Considering our review of the market and our competitive base, we feel that we can make a major contribution to the development of the financial intermediary market in New Zealand.

“We are bringing a new element of competition into the financial services market which will be of benefit to borrowers and lenders alike, whether they are consumers or commercial clients. “We believe this can act as a stimulant for the industry generally. The days of just being there, or ‘she’ll be right,’ are gone for good.

“Broadbank’s management philosophy is no different from that of any other ambitious company. We are looking to get productivity up and provide a full range of convenient services, catering for a customer who operates a passbook savings account, up to companies dealing in millions. “We are simply reflecting the sort of attitude that has to

be applied to New Zealand generally while our economy is recovering.” Mr Haydon said that the future for the company and its customers looked bright. “It is our aim to ensure the continued acceptance of Broadbank as a major supplier of financial services,” he said. “To this end we will offer a fair return and security to all savers and investors, and encourage people to utilise their financial resources to the utmost.

“We have successfully market tested the Savercentre Passbook Savings Scheme, and the introduction of the Anytime card and automatic teller machines is a good example of the sort of convenient service we plan to give our customers.

“One of our major aims is to attract the investor who is sitting on unused capital. All that person is doing is subsidising borrowers. Broadbank Will compensate him for the use of those funds.”