Bank takes share of market

Press, 25 July 1989, Page 28

Bank takes share of market

The New Zealand banking industry has undergone a period of rapid change in the past few years, one aspect of which has been the emergence of strongly-focused retail banks.

The prime example of this change has been PostBank, which has changed from being a public service organisation, struggling to retain its cus-

tomers and bereft of competitive products, into a vital organisation taking an increasing share of the retail banking market. As part of the global ANZ Banking Group, PostBank now offers its customers security, increased service and banking products, which are both competitive and easy to use.

Since it adopted a com-

mercial approach on becoming a State-Owned Enterprise on April 1, 1987, and a member of the ANZ Group earlier this year, Postßank has become a very changed organisation. It has been able to reinvest money in upgrading its branches to new standards, aggressively marketing its services, staff training, technology

and operating systems, all elements which are essential for survival in a competitive banking market.

Postßank is now engaging in a major upgrading of its network and in the South Island will be opening 13 new branches during the second half of this year. Throughout New Zealand it will open 67 new outlets during that

same period. By generating the profits to reinvest in its network the bank is able to put branches where a majority of its customers want them. It is policy which is producing dramatic results for the bank. By shifting branches into high customer traffic areas it is lifting its transaction volumes significantly, while improved customer servicing and aggressive marketing have cemented PostBank’s place as a major player in the mortgage market. On the investment side the bank’s products are successfully meeting the needs of its customers at all levels. The cornerstone of the service Postßank offers are its savings and cheque accounts. Cheque accounts were a service which the old Post Office Savings Bank did not promote in a major way.

Now Postßank is heavily underscoring the cost savings which its cheque accounts offer to its customers. Postßank cheque account holders face no base fees, no clearance fees, no unexpected activity charges, and in fact, earn interest at three per cent on their credit balances.

Some rival products offer higher interest rates, but the effect of this is offset by transactions fees which run as high as 35c per cheque. Also appealing for savers are the bank’s traditional passbook accounts. Postßank Key accounts offer a standard interest rate of 8.19 per cent which compound monthly to give savers an annual yield of 8.5 per cent on their savings.

In the term investment area Postßank offers a range of secured investments with competitive rates. In this area investors should keep an eye on the special rates which the bank offers from time to time.

Currently Postßank’s standard rates vary from eight per cent for small deposits held for 30 days through to 11.5 per cent for sums more than $5OOO invested for one year. But on top of this interest rate structure it is offering a special rate of 12.25 per cent for sums of more than $2OOO invested for nine months.

These special rates are offered to meet the bank’s need to keep a balance in the maturities of its borrowings at a particular time. Investors should keep their eye on rates to take advantage of such offers.